COMPLIANCE
Organisations should be using it to: l guide, analyse and direct business strategy l eliminate errors across processes in order to drive pay equality across complex organisations l make recruitment, attrition and retention HR policies more productive and efficient l set and monitor fairer targets across diverse workforces l gain internal credibility through data and payroll transparency. Reducing employee attrition The biggest use within payroll is to identify costs like overtime and retention. This kind of analysis is straightforward provided you have access to the data and are using it in the correct way. But before leveraging the possible value this data gives, organisations must be sure to have high-quality and consistent payroll data in the first place. Businesses stuck with legacy systems which don’t work well together across different markets or small businesses using outdated, failing software systems will find this a massive challenge. Implementing a global payroll solution which allows for full access to data in real time and, crucially, automated integration
with HR and finance (among other core functions) is ideal.
an organisation which has a massive, disconnected workforce across international production plants and manufacturing sites will have very different data sets than a small business which uses one set of employee data. So, processes need to be very different. Having a centralised data set aligned to the fragmented business model and structure is vital to have meaningful data that can be used to make informed business decisions. It’s not necessarily about which technology to use, but the usage of the data itself. There’s operational reporting and then there’s strategic analysis and reporting. A lot of the modern cloud products offer huge improvements for the strategic reporting space. They offer all kinds of services, such as an out of the box headcount analysis, for example. This kind of service is incredibly useful. But often the data businesses really need comes under operational reporting. It’s important to carefully select the right product to be sure your business is getting what it needs, and not just what’s built in reporting- wise. High level strategy is, of course, great, but perhaps more importantly, you need to be able to analyse the fundamentals. n
Payroll data analysis Let’s assume you have the high-quality payroll data you need – now what? There are so many highly valuable ways to analyse and use this data. Let’s look at just one key area: improving retention and recruitment. Payroll data can be used to help you find the best candidate when recruiting, by helping you to understand the costs and risks of different regions, markets and sectors. It could show peaks of overtime mirroring staff turnover – a pattern we often find in companies with high rates of attrition. In other words, the data can be used to inform decisions to ensure working conditions match employee expectations to prevent them from wanting to move on. It can be as simple as that. The evolution of cloud-based analysis tech However, we also work with companies which have a significant interconnected workforce that show only minimal attendance and time data. For example,
Payroll Technician Certificate ADVANCED The CIPP’s Payroll Technician Certificate meets the industry’s rapidly evolving requirements for knowledgeable payroll administrators.
The Advanced certificate contains the same content as our excellent Payroll Technician Certificate, but includes three extra modules covering the following areas:
● data protection and audit considerations ● automatic enrolment and pension principles ● administering salary sacrifice for payroll.
Scan to book
Visit www.cipp.org.uk/PTCA for full details and to enrol today
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| Professional in Payroll, Pensions and Reward |
Issue 95 | November 2023
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