Shed light on the black box: how Deutsche Post DHL achieved global transparency over payroll processes

Purpose – The purpose of this paper is to describe how Deutsche Post DHL's HR shared service center organization enhanced its KPI system (scorecard) by moving it towards a more operational, detailed and process‐oriented measurement level. Design/methodology/approach – The paper describes a one‐year project aimed at obtaining transparency over payroll processes and costs from a global perspective by focusing on three areas – KPIs, benchmarks and a resource allocation exercise. Findings – Transparency and comparability of payroll processes can be significantly enhanced using a few parameters to assess cost‐efficiency and therefore allowing for a better discussion of improvement potential. Practical implications – Transparency over payroll processes and respective costs significantly increased. Different levels of cost savings could be calculated by using internal and external benchmark data. The results enabled more in‐depth discussions with payroll, as well as general managers, and identified objectives to facilitate further improvement. Originality/value – The paper reveals how HR can strengthen its business partner role by effectively using instruments such as benchmarks and KPIs.