Or, consider outsourcing all or part of the payroll function to a third-party. Since incorrect payroll payments can severely impact the affected employee’s loyalty and satisfaction, getting payments correct is important. While the goal of the finance department is to reduce overall payroll processing costs, reducing headcount may be the most obvious but not necessarily the most important change to make. More ideas on using HR KPI. Do you know how much your entire payroll process costs your business? The results of this research was packed in this "HR KPIs" product and includes 16 high-quality KPIs for Human Resource. Productivity metrics allow you also to provide your employees with meaningful and constructive feedback on their performance. Data at a Glance. She works closely with Finance, Shared Services and HR professionals who It is likewise worth bearing in mind that metrics could prove a useful means of demonstrating what value payroll professionals contribute towards an organisation. For most mature payroll functions, the performance metrics for the first two – timeliness and compliance – are targeted at 100%, while accuracy is typically targeted at near-perfect (99.x%). Manage your … Making friends with payroll metrics Accurate and timely service delivery. When metrics are measured, recorded and reported, the resultant data can be used to uncover and identify trends, which can in turn support decision-making at all levels of the organisation. Below are four metrics that can give you this information. Sign up for our email newsletter to be notified when we produce new content. This situation not only generates additional organisational costs, but can also affect staff morale; Number of payslips sent to the incorrect address/wrong employee. Moreover, compliance failure can have financial consequences for the organisation. 9. Many countries impose financial fines for non-compliance. 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. - 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 … Were on payroll as temporary staff and promoted into a full-time position. Best in Class Payroll Metric #4: Payroll Processing Accuracy Rate. 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. 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. Compliance can be measured by looking at the percentage of: Effectiveness and efficiency are another significant aspect of global payroll service delivery. Log in. One common use of HC metrics is in workforce scorecards, where strategic analysis has been undertaken to identify metrics that are critical to performance. 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. 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. When you use KPIs on projects, you’re measuring team and project progress. Personal and team development plans and training. Area definitions, KPI examples and common job titles for a variety of industries. Prior to her current role, Sharon was chief operating officer for a payroll service company specialising in outsourced services to Africa and the UK. payroll specialist ... targets amp metrics. KPI definition, data wrangling and standardization to maximize your tech investments. 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. HR admin and payroll positions must have KPIs in place to measure and monitor: Accuracy and proper management of payroll data. View the full article today Register to read this article. Automation isn’t the only way to improve this metric. Payroll metrics: Uncovering the data that leads to continuous improvement, The three sub-processes making up 70% of payroll labour costs. 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. 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. Many companies use labor expenses as their main payroll benchmarking metrics and attempt to keep them as low as possible. Or, the organization can focus on employee training, teaching payroll employees how to process payroll more efficiently or teaching employees how to complete travel and expense reports without missing information. 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. Program Leader . Number of payments made to an incorrect bank account. Payroll staffing ratio calculates how over- or under-staffed the payroll function is But a high payroll staffing ratio—meaning that the company has a large number of payroll staff compared to the number of total employees—could be because staff must pay commissions and referral fees in a complicated compensation structure. Formal management of staff performance and responsibilities. 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. We will help you benchmark your finance and payroll departments and provide you with presentation-ready, high-quality deliverables at an affordable price. Using metrics to demonstrate the value of global payroll service delivery. 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. People analytics: Six essential HR metrics for 2018. 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. We have created Ready-To-Use HR Metrics Excel Templates with predefined formulas. Their accolades include Silver in the HCM category and Bronze in the Payroll category of HRD Top Service Provider Awards. Ms. Cheek has primary responsibility for advisory services as well as setting the agenda for research for the Global Time-to-Pay process. Business intelligence dashboards and analysis to improve management capabilities. 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. To be in a position to report on the value that payroll offers with an organisation, certain metrics must be tracked. •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%. Accurate data is a must for any decision-making here. While this value has been overlooked for years, one of the reasons for this is that it has rarely been measured. Payroll metrics are among the most important metrics. Key risk indicators (KRIs) measure the amount of risk an activity poses to an organization and the impact of that risk on business performance. You can formulate productivity tips tailored to each team member. Sharon Tayfield is a senior manager, with extensive experience in global outsourcing and a special interest in payroll. Payroll Metrics and Best Practices: The Art and Science of An Effective Strategy Felicia Cheek Global Time to Pay Advisory Program . Quantitative measures are based on data such as the number of inaccurate paychecks or the amount of time it takes to process. Organizations use KPI metrics to evaluate their success in reaching targets. Meeting target deadlines is one possible measurement, but another is ensuring that the actual amount paid is accurate. Besides managing employees’ payroll data, it is also necessary to ensure that payments are made to the correct recipient. 9. ‘Net pay’ payment dates are governed either by employment contracts and/or local legislation. Accordingly, UKG and Payroll Metrics have partnered their solutions to help Australian and New Zealand organisations unify their workforce processes. Most organisations strive to provide services that are efficient as it leads to reduced costs. Payroll metrics to use Cost of payroll. Read more items tagged with the same topics. KPIs and KRIs can be quantitative or qualitative. The Hackett Group . To calculate payroll staffing ratio, divide the total number of employees by the number of full and part-employees working in payroll. Presentation-ready benchmarking data, reports, and definition guides. 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. 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. 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. Reports take less than a minute to run. Each process has a unique set of technical processing and service delivery requirements and goals. Payroll is by nature very deadline-driven. The key is to continually improve the ratio between the dollars spent on employee costs (wages, benefits and overall HR expenses) and overall … Below are four metrics that can give you this information. Affiliated HR & Payroll has blended into … Payroll Performance Metric: Labor Expense as a Percentage of Total Revenue. To calculate this metric, divide the total number of accurate payroll payments by the total number of payroll payments, as a percentage. "The Labor Market Data Critical Evaluation Talent Acquisition Metrics and AnalyticsEmployers in the U.S. added 225,000 new jobs in January, according … Payroll management can range from IT time running the system to accounting time and then to those tasked with oversight and ensuring the system is updated and accurate. Analyzing the costs of running... Time to run payroll. There are some key points to note when developing a set of employee performance metrics. Download trial version of HR Metrics. 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. Best in Class Payroll Metric #3: Labor Expense as a Percentage of Total Revenue. Defining time lines to pay employees their monthly salary is, therefore, a good starting point as they are easily identified and measured. Qualitative measures are subjective such as employee morale or engagement in the payroll function. Best in Class Payroll Metrics Examples. department goals and Report Pack Webinar Series. Too many manual processes, lack of clear processing and submission standards, and un-trained employees can all lead to increased costs. To cut down on the back-and-forth to collect missing or incorrect information, clearly document how to submit T&E. Customizable busines process workflow templates. Implementation of change through projects and initiatives measured according to budget, time and scope. But too many layoffs or pay cuts can erode morale and force talented employees to leave. Yet not many leaders devote enough attention to these KPIs because they are occupied by monitoring their digital marketing, sales, and CX metrics instead. KRIs help identify the biggest risks in payroll—most likely related to regulations such as The Fair Labor Standards Act (FLSA) or IRS tax requirements–and help managers mitigate those risks. KPIs in … how to set smart goals guide for supervisors and. goals and objectives montana. 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. BASC is organized around functional processes. 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. A list of high-quality 16 KPIs for HR is already a good business tool, but we decided to move forward. 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. 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. Get quick and accurate payroll reports. HR Metrics That Matter 1. 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. Mean better decision making. The following metrics are useful in this context: By its very nature, payroll delivery involves vast quantities of personal data, so controlling that data must be done is a safe and secure manner. Red/amber/green (RAG) rated scorecards are then used to monitor and manage these key metrics. Effectiveness and efficiency. Already an XpertHR user? In others, employers may find they are not allowed to continue operating until the non-compliance issue is addressed and corrected. 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. Employment Performance KPI’s. Cycle time to process payroll This is just a small sampling of all the possible metrics that can be measured. 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