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.
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.
Download the full report
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.
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