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. In the beginning we sorted all these 16 KPIs into 4 categories: Employee … Payroll Metrics and Best Practices: The Art and Science of An Effective Strategy Felicia Cheek Global Time to Pay Advisory Program . Payroll is a significant business expense, so it makes sense for finance departments to use best in class payroll metrics to reduce costs. HR admin and payroll positions must have KPIs in place to measure and monitor: Accuracy and proper management of payroll data. 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. Long viewed as a transactional processing function, the payroll function is actually much more complex, with many moving parts. 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. 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. 9. 9. 9. Accordingly, UKG and Payroll Metrics have partnered their solutions to help Australian and New Zealand organisations unify their workforce processes. Customize your KPI definitions While quantitative measures typically come directly from transactional systems, finance departments can collect data for qualitative measures from surveys, interviews, or other opinion or sentiment-based sources. 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. Ms. Cheek has primary responsibility for advisory services as well as setting the agenda for research for the Global Time-to-Pay process. Already an XpertHR user? To browse and search for key performance indicators, also known as business metrics, performance measures or business indicators, in various industries and general processes, login or join for ... after processing of the various requirements for withholding of money from the employee for payment of payroll taxes, insurance premiums, employee benefits, garnishments and other deductions. Key risk indicators (KRIs) measure the amount of risk an activity poses to an organization and the impact of that risk on business performance. A list of high-quality 16 KPIs for HR is already a good business tool, but we decided to move forward. Accuracy Ensured. 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. Sharon Tayfield is a senior manager, with extensive experience in global outsourcing and a special interest in payroll. 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. Employees rely on their employer to pay them fairly, accurately, and on-time. Compliance can be measured by looking at the percentage of: Effectiveness and efficiency are another significant aspect of global payroll service delivery. 9. First-Tier Metrics Overall Workforce Productivity The very best measure of overall HR success is workforce productivity. To be in a position to report on the value that payroll offers with an organisation, certain metrics must be tracked. Employment Performance KPI’s. 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. Besides managing employees’ payroll data, it is also necessary to ensure that payments are made to the correct recipient. Finance, KPIs & Metrics, Metric Management. 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 measuring employee performance, the goal is to focus on meaningful data that allows you to determine employee profitability. Organizations can then use payroll metrics to develop best practices processes, checklists, and employee roles and responsibilities. Each process has a unique set of technical processing and service delivery requirements and goals. Many countries impose financial fines for non-compliance. Payslip Recalculation KPI. It is important that the data gathered on employee performance is meaningful and useful as an analytical tool. Payroll metrics are among the most important metrics. payroll specialist ... targets amp metrics. Possible metrics here include: Conversely poor service delivery could be measured by taking into account the total cost of fines and penalties incurred during the reporting period, additional resourcing costs to reprocess errors, the financial cost of money paid out that cannot be recovered and technology that does not work. To cut down on the back-and-forth to collect missing or incorrect information, clearly document how to submit T&E. Payroll metrics to use Cost of payroll. People analytics: Six essential HR metrics for 2018. Download Free HR Metrics Templates in Excel. Reports take less than a minute to run. Employees who are on a third party’s payroll. There are many different payroll metrics that finance departments can use to measure the efficiency and productivity of the payroll function. She has undertaken senior management roles at a range of multinational companies, including a wholly-owned subsidiary of Anglo America where she was financial director. Report Pack Webinar Series. 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 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. 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. Area definitions, KPI examples and common job titles for a variety of industries. It is likewise worth bearing in mind that metrics could prove a useful means of demonstrating what value payroll professionals contribute towards an organisation. Having a KPI that tracks staff tasks connected to payroll will help you identify how well managed your payroll is Rather than recording arbitrary data, the criteria used should reflect the organization’s goals. The key is to continually improve the ratio between the dollars spent on employee costs (wages, benefits and overall HR expenses) and overall … Payroll departments interacts with other business functions; keeps track of pay, benefits, and deductions; adheres to regulations governing compensation; handles employee questions and resolves problems; and delivers management and statutory reporting. Metrics are also an excellent means of driving process improvement, understanding weaknesses in the overall payroll cycle and identifying areas that could be improved upon. Quantitative measures are based on data such as the number of inaccurate paychecks or the amount of time it takes to process. For a full list of best in class payroll metrics and payroll benchmarks, download our Finance Benchmarking Report here. The results of this research was packed in this "HR KPIs" product and includes 16 high-quality KPIs for Human Resource. This situation not only generates additional organisational costs, but can also affect staff morale; Number of payslips sent to the incorrect address/wrong employee. Labor costs have a direct impact on the bottom line, and many finance departments want to reduce the costs for wages, benefits, and payroll taxes to increase revenue. The payroll function is responsible for more than just issuing paychecks to employees. This defines best in class Payroll metrics measure how well the payroll function—and all of its moving parts—performs. Below are four metrics that can give you this information. KPI definition, data wrangling and standardization to maximize your tech investments. Get quick and accurate payroll reports. 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. Mean better decision making. Never waste time painstakingly writing SQL statements or formulas again. We will help you benchmark your finance and payroll departments and provide you with presentation-ready, high-quality deliverables at an affordable price. Best in Class Payroll Metric #3: Labor Expense as a Percentage of Total Revenue. They can give business leaders meaningful insight into the performance of their company. 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. 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