Payroll Benchmarking

Payroll Benchmarking is the process of comparing an organization’s payroll performance, practices, and cost structure against peer groups and world-class standards to identify improvement opportunities. It evaluates key metrics such as payroll cost per employee, payroll FTEs, processing cycle times, error rates, and compliance effectiveness. Benchmarking provides data-driven insights into operational gaps, technology adoption, and delivery model efficiency. The Hackett Group® uses proprietary benchmarks and best practices to help organizations assess payroll maturity and define transformation roadmaps. Payroll benchmarking enables enterprises to move from transactional processing to a more efficient, compliant, and strategically aligned payroll function.