HR Challenges and Solutions
Payroll and HR Administration: Use Total Cost of Ownership Methodology to Expose Process Improvement Opportunities
ADP has developed a method of measuring TCO that helps HR functions find opportunities to improve processes and reduce costs. TCO scans analyse the total cost of ownership of managing payroll, time and attendance, HR data administration, and health and benefits processes by looking at all the costs relating to people, processes, and technology.
These include both “visible” and “hidden” costs, which can represent well over half of the TCO of a process, according to a 2012 study by PwC. Uncovering both the visible and hidden costs of HR will reveal opportunities to make cost savings and establish a link between HR activities and business results – becoming more strategic and getting closer to a seat on the board.