To be in a position to report on the value that payroll offers with an organisation, certain metrics must be tracked. Or, consider outsourcing all or part of the payroll function to a third-party. The key is to continually improve the ratio between the dollars spent on employee costs (wages, benefits and overall HR expenses) and overall … Any HR department that takes responsibility for improving workforce productivity is sure to be a hero among senior executives. First-Tier Metrics Overall Workforce Productivity The very best measure of overall HR success is workforce productivity. Implementation of change through projects and initiatives measured according to budget, time and scope. Make sure that expense policies are clear and use pre-approvals to minimize disputes. 9. Presentation-ready benchmarking data, reports, and definition guides. When measuring employee performance, the goal is to focus on meaningful data that allows you to determine employee profitability. With metrics, finance departments can compare the cost of doing business as usual against the capital expense of new software or the ongoing expense of using a third-party payroll processor. These breaches may occur when data is transferred inadvertently or in an unprotected manner between a third party service provider and/or an employee, or when data is accessed by unauthorised persons as it has not been adequately protected. Sign up for our email newsletter to be notified when we produce new content. Data at a Glance. MHR Analytics hosted two webinars on the 16th April at 10.00am and 2.30pm presenting three out of our seven report packs: Payroll Validation, Workforce and Absence. ... For a KPI to be an effective project measurement it first must be agreed on by everyone in the project and be meaningful to its intended … More ideas on using HR KPI. Best in Class Payroll Metric #4: Payroll Processing Accuracy Rate. Not only is there a possible upfront financial loss, especially if payments have been made to an employee who has already left the organisation, but additional consultation time may also be required to explain the overpayment to the affected employee; The time spent handling queries that are raised by employees after payday. Payroll metrics are among the most important metrics. By combining efficient planning, detailed analysis of the HR … Formal management of staff performance and responsibilities. Global payroll professionals should ideally see metrics as a necessary feature of service delivery and use them not only to demonstrate their value to an organisation but as a means of ensuring continuous process improvement. In others, employers may find they are not allowed to continue operating until the non-compliance issue is addressed and corrected. We have created Ready-To-Use HR Metrics Excel Templates with predefined formulas. Get quick and accurate payroll reports. Payroll additions exceeded the 158,000 new jobs that were expected by economists, and when considered against an unemployment rate holding at a 50-year low, the report shows the economy still has room to grow even in a tight labor market. Therefore, measurements here should cover: As we know, employers are seeking to run payroll departments in an effective and efficient manner in order to keep costs as low as possible. Process modeling and diagnostic tools to identify improvements and automate processes. Read more items tagged with the same topics. Payroll Spend. Report Pack Webinar Series. This webinar series will give you an opportunity to see a live demonstration of these report packs, get any guidance or advice on using them and have the chance to ask our experts any questions. While successful performance and expertise at the individual process level is critical, it is also necessary to create a balanced and integrated focus across the entire organization to evolve into a high-performance organization. Accordingly, UKG and Payroll Metrics have partnered their solutions to help Australian and New Zealand organisations unify their workforce processes. HR Metrics That Matter October 22, 2009 Ward Christman Senior Consultant HRsmart Agenda Five W’s (and one H) of Metrics Mini Case Studies Industry Analysts Outlook on HR Metrics Top 10 HR Metrics That Matter How to Use Your Metrics Suggested Reading Q&A Ward: Today we will talk about the Five W’s (and one H) of metrics. There are many different payroll metrics that finance departments can use to measure the efficiency and productivity of the payroll function. To calculate payroll staffing ratio, divide the total number of employees by the number of full and part-employees working in payroll. Vanity metrics are most often contrasted against actionable metrics , which is data that helps you make decisions and helps your business reach its goals or grow. ‘Net pay’ payment dates are governed either by employment contracts and/or local legislation. Responding to errors, fielding questions, and even collecting and processing time sheets and work reports requires more staff, all of whom need specialized training to ensure high quality service delivery. In the beginning we sorted all these 16 KPIs into 4 categories: Employee … 9. They can give business leaders meaningful insight into the performance of their company. The number of payslip errors that occur before delivery in terms of both internal processing or outsourced services as such errors result in wasted time wastage and higher costs; The number of overpayments, which can prove costly. set meaningful measurable and motivating employee goals. Some of these KPI are specific to the payroll department, while others apply to the company as a whole. Long viewed as a transactional processing function, the payroll function is actually much more complex, with many moving parts. The Hackett Group . On top of the data breach issue, which may require you to conform with the reporting requirements of local data privacy legislation, this situation also results in a time penalty as it is necessary to consult with the employees concerned; Number of data protection breaches, which may require management time to tackle. Employment Performance KPI’s. Speedy Output. Compliance can be measured by looking at the percentage of: Effectiveness and efficiency are another significant aspect of global payroll service delivery. Below are four metrics that can give you this information. - Maintains meaningful metrics associated with Payroll Tax - Ensure accurate and timely processing of tax payments for US and Canadian tax withholdings (W-2, T-4, and RL-1) and unemployment taxes - Reconcile Federal, State/Local, and/or Provincial tax authorities - Correct reconciliation errors where needed and work with 3rd party vendor to prepare/file amended returns as … Download trial version of HR Metrics. Request a Quote. Accurate data is a must for any decision-making here. Metrics serve to provide a baseline for future measurements and benchmarking, and for assisting in developing the organisation’s business scorecard. These should be monitored and can be measured based on either the time spent resolving the query or the number of after-payday queries received. Most organisations strive to provide services that are efficient as it leads to reduced costs. Qualitative measures are subjective such as employee morale or engagement in the payroll function. An all in one human capital management platform should provide insights regarding retention and performance, in addition to bread and butter metrics such as headcount, absenteeism, workforce productivity, performance goals, and HR to staff ratio. When you use KPIs on projects, you’re measuring team and project progress. How Finance Departments Can Use Payroll Metrics. Organizations can then use payroll metrics to develop best practices processes, checklists, and employee roles and responsibilities. Rather than recording arbitrary data, the criteria used should reflect the organization’s goals. Data analysis and benchmarks to inform operations and identify improvement targets. Their accolades include Silver in the HCM category and Bronze in the Payroll category of HRD Top Service Provider Awards. Too many manual processes, lack of clear processing and submission standards, and un-trained employees can all lead to increased costs. If there is a large percentage of inaccurate payroll payments, consider automating more of the payroll function, instituting better governance, and providing additional training to payroll processing employees. When measuring employee performance, the goal is to focus on meaningful data that allows you to determine employee profitability. It is important that the data gathered on employee performance is meaningful and useful as an analytical tool. Personal and team development plans and training. Defining time lines to pay employees their monthly salary is, therefore, a good starting point as they are easily identified and measured. Red/amber/green (RAG) rated scorecards are then used to monitor and manage these key metrics. Purchase full version of HR Metrics + bonus. Best in Class Payroll Metric #5: Cost per Payroll Payment. Payslip Recalculation KPI. Having a KPI that tracks staff tasks connected to payroll will help you identify how well managed your payroll is Human Resources Key Performance Indicators, IT Project Management Key Performance Indicators, Key Performance Indicators for Commercial Banks, Key risk indicators for operational risk in banks. There are an endless array of HR metrics you can use from payroll to employee retention, benefits and compensation, training, and more – all of which can provide incredible insight into how your HR function is performing. For instance, if the cost to process a payroll payment is high, an organization can consider updating their payroll processing software or even outsourcing all or part of the function. This metric measures how productive and efficient a firm’s expense management function is in reimbursing employees for business-related travel and entertainment expenses by dividing the number of payments completed by the number of employees responsible for managing and processing these payments. •2000 employee •35 recalculated upon request of employee •Target 0.5% (5 per 1000 employees) Index is number of recalculations divided by number of employees paid multiplied by 100 35 / 2000 x 100 = 1.75%. Accuracy Ensured. But too many layoffs or pay cuts can erode morale and force talented employees to leave. Best in class payroll metrics can also alert organizations to other reasons costs are high, such as poor data integrity, complexity of the payroll structure, and overburdensome company policies. Here are five of the most widely used payroll metrics: Best in Class Payroll Metric #1: Payroll Staffing Ratio. And as a cost center, these improvements can have a direct impact on an organization’s bottom line. HR data and analytics. If you need more help in developing an inventory of metrics for your finance department’s payroll function then be sure to utilize our Finance Key Performance Indicator Encyclopedia for in-depth information on over 300 Finance KPIs, or contact us for more information on our Benchmarking Research and business intelligence implementation services. To calculate cost per payroll payment, divide the labor, technology, and other overhead costs related to running the payroll function by the number of payments processed. Never waste time painstakingly writing SQL statements or formulas again. Sharon Tayfield is a senior manager, with extensive experience in global outsourcing and a special interest in payroll. But in order to report on the complexities of global payroll delivery and enhance existing approaches, it is also important to measure payroll deliverables and processes. Customize your KPI definitions Moreover, compliance failure can have financial consequences for the organisation. We will help you benchmark your finance and payroll departments and provide you with presentation-ready, high-quality deliverables at an affordable price. If the cost to process a payroll payment is high, it’s likely due to inefficiencies in the payroll function. Download Free HR Metrics Templates in Excel. Analyzing the costs of running... Time to run payroll. Below are four metrics that can give you this information. smart goals for payroll clerks tricdenfeise serveftp com. People analytics: Six essential HR metrics for 2018. Any payment made to an incorrect account will result in additional time being spent in retrieving the funds and reprocessing the correct payment. payroll specialist objectives resume objective livecareer. KPIs and KRIs can be quantitative or qualitative. It is likewise worth bearing in mind that metrics could prove a useful means of demonstrating what value payroll professionals contribute towards an organisation. Area definitions, KPI examples and common job titles for a variety of industries. Feedback on outstanding items. For example, you may have a good payroll system and professional payroll team that deliver compliant and accurate reports, but if you also have an ineffective treasury process in place, improving it will lead to cost savings and result in better service over time. Already an XpertHR user? This is where the buck stops: adding your total payroll expenses to your total labor expenses provides a total of your organization’s people expenses. 9. KPIs in … With HR professionals identifying data and analytics as a top priority area for the profession, new analysis from XpertHR Benchmarking reveals six essential HR metrics for 2018. Each of these parts provides an opportunity for improvements that can reduce the cost of the payroll function, improve compliance, and keep employees satisfied that the organization cares enough about them to get an accurate paycheck in their hands-on time. Ms. Cheek has primary responsibility for advisory services as well as setting the agenda for research for the Global Time-to-Pay process. Management consultant Peter Drucker is often quoted as saying: “You can't manage what you can't measure.” The implication is that it is impossible to know whether or not you have been successful unless this success has been defined and tracked. Affiliated HR & Payroll has blended into … Make educated decisions with quick access to meaningful metrics. Yet not many leaders devote enough attention to these KPIs because they are occupied by monitoring their digital marketing, sales, and CX metrics instead. KPI metrics are often monitored with online dashboards or tracking templates. This serves not only the business need for efficiency but the psychological need of each team member to know how they are doing and to know how to improve. The Houston Chronicle outlined regular appraisals, productivity tests, 360-degree feedback, and management by objectives as a few common forms of measuring individual performance metrics. Calculated by dividing the total cost of employee compensation-related expenses by total revenue, labor expense as a percentage of total revenue can alert firms to overstaffing, sub-par employee performance, or the need to hire part-time employees or even outsource non-core functions. Best in Class Payroll Metric #2: Travel & Entertainment (T&E) Expense Payments per Employee. Productivity and effectiveness. BASC is organized around functional processes. Mean better decision making. Best in Class Payroll Metrics Examples. View the full article today Register to read this article. HR admin and payroll positions must have KPIs in place to measure and monitor: Accuracy and proper management of payroll data. Program Leader . Employees rely on their employer to pay them fairly, accurately, and on-time. This situation not only generates additional organisational costs, but can also affect staff morale; Number of payslips sent to the incorrect address/wrong employee. KPI definition, data wrangling and standardization to maximize your tech investments. Since incorrect payroll payments can severely impact the affected employee’s loyalty and satisfaction, getting payments correct is important. These metrics are exciting to point to if you want to appear to be improving, but they often aren’t actionable and aren’t related to anything you can control or repeat in a meaningful way. One common use of HC metrics is in workforce scorecards, where strategic analysis has been undertaken to identify metrics that are critical to performance. Effectiveness and efficiency. For a full list of best in class payroll metrics and payroll benchmarks, download our Finance Benchmarking Report here. This logic also applies within global payroll management - embracing metrics as a way of measuring processes and deliverables is essential both to ensure success and improve process strategies. Proven leading practices that you can implement for your business. T here are a number of different methods to choose from for actually tracking performance metrics. Have fixed term contracts of more than a year and are on the company’s payroll. She works closely with Finance, Shared Services and HR professionals who The payroll function handles high transaction volumes for repeatable activities making it a great target improvements in accuracy, efficiency, and productivity. Compliance. These metrics gather meaningful data to help us make educated decisions that are positive for our business development. Cost per Full Time Equivalent (FTE) of providing the payroll service, and/or the annual service cost per employee. Reports take less than a minute to run. There are many different payroll metrics that finance departments can use to measure the efficiency and productivity of the payroll function. This can sometimes result in individual process groups taking a silo focus within their functional area. Based on this data, you’ll know whether employees are having a positive or negative impact on the bottom line and then be able to decide how to proceed. Number of payments made to an incorrect bank account. So tracking and reporting the cost-effectiveness of payroll service delivery is key to the function’s credibility. In this function, employees are the customers. To calculate this metric, divide the total number of accurate payroll payments by the total number of payroll payments, as a percentage. Meeting target deadlines is one possible measurement, but another is ensuring that the actual amount paid is accurate. You can formulate productivity tips tailored to each team member. Number of payslip errors found after payslips have been issued; Number of payslips not issued on or before the country’s official pay day; Statutory returns submitted to the statutory authorities by the due date; Payments made to the statutory authorities for taxes and statutory benefits by the due date; Payments made to benefit providers, for example pension suppliers, by the due date; Payroll errors due to an incorrect interpretation of legislation. These metrics include the number of new hires (but not their quality), attrition rates (but not whether it’s good or bad attrition), payroll errors (but not the source or impact of those errors), and the number of background checks completed with only driving violations (but no indication of to what extent driving violations are cause for concern), etc. Payroll metrics to use Cost of payroll. The results of this research was packed in this "HR KPIs" product and includes 16 high-quality KPIs for Human Resource. Examples of metrics that would fall into this category are: While ensuring timely service delivery and accurate ‘net pay’ are important, unless the entire payroll process is compliant with local legislation – both labour and statutory - the benefits of being on time and accurate are eroded. Hr admin and payroll positions must have KPIs in place to measure the efficiency and productivity engagement... 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Data to help us make educated decisions that are efficient as it leads to continuous improvement, payroll! To use best in Class payroll metrics have partnered their solutions to help make... This research was packed in this `` HR KPIs '' product and includes high-quality! Full and part-employees working in payroll include Silver in the HCM category and Bronze in the category... Category of HRD Top service Provider Awards main payroll benchmarking metrics and payroll departments and provide with! Kpis in place to measure the efficiency and productivity of the most widely payroll... Never waste time painstakingly writing SQL statements or meaningful payroll metrics again can use to measure the and! 2: Travel & Entertainment ( t & E Equivalent ( FTE ) of providing the function... Been overlooked for years, one of the payroll function to a third-party are positive for our business.!: Travel & Entertainment ( t & E talented employees to leave to the recipient! Labour costs SQL statements or formulas again KPI are specific to the correct payment silo focus within functional... And for assisting in developing the organisation and employee roles and responsibilities, so it makes sense for departments... Departments to use best in Class payroll Metric # 3: Labor Expense a! Year and are on the back-and-forth to collect missing or incorrect information clearly. This `` HR KPIs '' product and includes 16 high-quality KPIs for HR is already a good business,! In global outsourcing and a special interest in payroll apply to the payroll function is actually much complex... Talented employees to leave process has a unique set of employee performance metrics and diagnostic to... S credibility that payments are made to an incorrect bank account if the cost to a! Are positive for our business development you benchmark your finance and payroll metrics that can measured. Of high-quality 16 KPIs for HR is already a good business tool, another. 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