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Payroll at the tipping point: The case for C-suite elevation

Payroll often accounts for 40–60% of operating expenses, yet many organizations have not modernized how it is governed or led.

This report examines why payroll has reached a tipping point and why stronger executive ownership is now required.

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New global research from KPMG and UKG, based on a survey of 319 senior leaders, shows that payroll remains fragmented, under‑resourced, and vulnerable to financial leakage, compliance risk, and operational breakdowns. While most organizations report having a global payroll strategy, few have achieved the standardization, controls, and insight required to operate payroll at enterprise scale.

The case for elevating payroll leadership

The research points to a clear conclusion. The current operating model is insufficient for the scale, risk, and complexity payroll now carries.

A future‑ready approach includes:

  • Elevating payroll to a C‑suite‑level function with clear ownership and authority.
  • Strengthening governance and internal controls across regions and vendors.
  • Standardizing processes as a prerequisite for AI and automation.
  • Expanding measurement beyond operational metrics to support predictive insight and enterprise decision‑making.

Many organizations may pursue this evolution through phased leadership models, including the emergence of a Chief Payroll Officer role. 

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Payroll at the tipping point: The case for C-suite elevation

This report provides detailed data, analysis, and practical steps for leaders seeking to strengthen payroll governance, reduce leakage, and position payroll as a strategic enterprise function.

Download the full report

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Payroll at the tipping point: The case for C-suite elevation

New global research from KPMG and UKG, based on a survey of 319 senior leaders, shows that payroll remains fragmented, under‑resourced, and vulnerable to financial leakage, compliance risk, and operational breakdowns.

All fields with an asterisk (*) are required.

By submitting, you agree that KPMG LLP may process any personal information you provide pursuant to KPMG LLP's . Privacy Statement

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