Payroll is outsourced by almost half of employers, according to a Society for Human Resource Management survey of its members (Society for Human Resource Management, July 2004). This varies according to company size: 58 percent of companies with fewer than 500 employees outsource payroll compared with 28 percent of companies with 10,000 or more, the survey finds (American Payroll Association, July 2004).
But there are signs of dissatisfaction. Seventy-four percent of executives nationwide “have some concerns about outsourcing”, a national survey of financial and HR executives by Empagio in 2006 finds. The primary issues are lack of responsiveness and lack of customer service. Twenty percent of executives say they no longer outsource due to poor customer service, and more than one-third of executives reported they were planning to change how they manage their organization’s payroll or are reviewing their options, the survey found (2006 Empagio Executive Study on Payroll and Tax Filing, October 2006).
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