Advanced Business Solutions research: Employers divided as to where payroll function should sit

Organisations are divided as to where the payroll function sits within the business, according to research by management and information systems provider Advanced Business Solutions.

The research, conducted among HR and payroll professionals in the UK and USA, found that 36% believe the payroll function should sit between the HR and finance departments, while 25% stated it should sit within HR, and 24% said it should be part of the finance function.

Simon Fowler, managing director of Advanced Business Solutions (Commercial), said: “These findings highlight the uncertainty about the payroll function in general. As payroll naturally spans both HR and finance, it appears to be the precious orphaned child of an organisation – highly valued but without a clear home.

“Payroll is crucial to both HR and finance and so needs to be linked with both functions.

“Integrated payroll, HR and finance software systems are vital to achieving this connected, joined-up approach.”

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