COMPLIANCE
Payroll data
Questions to ask
What does it tell us?
budgeting and forecasting decisions. This can help to predict future payroll expenses, plan for overtime costs and identify areas where there may be a need to hire seasonal staff l managing employee turnover: helping organisations to identify patterns in employee turnover, for example, employees leaving after a certain number of years at the company or in a particular role. This information can assist the organisation in identifying the causes of high employee turnover and in taking action to retain talent l identifying and addressing gaps in pay: pay gaps among employees can be highlighted, and this information can help organisations address any potential issues, ensure compliance and create fair, equitable pay structures l employee engagement and satisfaction: revealing how much money the organisation spends on employee benefits, such as health insurance or paid time off. “What kind of information can be gathered in payroll? And when analysed, what does it tell us?” Data security One thing I must highlight here is that with the abundance of data available, it’s crucial to be mindful of data privacy and security concerns. As we continue to rely more heavily on technology and data, it’s imperative to ensure appropriate measures are implemented to protect sensitive information and prevent data breaches. Data presents numerous opportunities for innovation and discovery, but this is accompanied by a responsibility to use it both ethically and responsibly. Payroll analytics and data play more and more important roles in business decision-making, as they help to spot trends, patterns and connections between different variables. They aid in finding areas for innovation, growth and increased operational effectiveness, while also helping in making wise business decisions. It’s time to make use of payroll data wisely and start reaping its many benefits. n
• How much time are payroll professionals spending on completing different tasks?
Identifies areas where productivity improvements could be implemented.
Time spent on tasks
• How many payroll runs were there with amendments? • Why were the amendments needed? • How many off-cycle payments were there recently? • What were the reasons for those payments? • How many errors have we seen in the past? • What kind of errors were they? • How often are employees leaving the company? • What’s the reason for leaving?
Highlights areas where the most amendments are required.
Number of payroll runs with amendments
Helps to identify the areas in which possible improvements could be introduced.
Number of off-cycle payments
Makes it easier to minimise errors in the future and highlights areas where improvement is needed. Draws attention to areas (or even departments / locations) where improvements are needed to retain staff. Helps to control costs for the organisation and identifies the periods when overtime peaks. Supports in identifying patterns in absences and the reasons behind them. Highlights the effects of absences on employee productivity. Comparison of outgoing costs vs. incoming revenue. Helps to keep track of the most popular benefits, as well as the costs associated with providing them.
Payroll errors
Employee turnover rate
• What’s the extent of overtime usage? • What’s the total cost?
Overtime costs
• What are absence levels like?
Absences
Revenue costs per employee
• How much do employees cost us?
• Which type of benefits are used most often? • What’s the associated cost?
Benefits
• What type of rewards (bonuses, commission) are paid and when?
Helps to keep track of the cost of rewards.
Rewards
This can help you to understand how different factors (such as employee demographics) affect your payroll expenses.
• What kind of expenses are paid most often?
Expenses
• What are the costs per employee when we use external payroll services?
Costs per employee / payslip
Helps keep track of the cost of external providers.
Draws attention to the importance of compliance and up to date payroll software – is there a need to update or even change it? Identifies areas in which employees can be trained and highlights any company policies that need to be rewritten or updated.
• How many times in a specific period was system software support needed? • Which areas of the software had to be fixed? • What type of questions do we receive? • Which subject area do we get most questions on?
Payroll software support
Employee query types
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| Professional in Payroll, Pensions and Reward |
Issue 95 | November 2023
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