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 Post subject: Payroll Metrics
PostPosted: Wed Jun 08, 2011 10:25 am 
Regular Contributor

Joined: Wed Oct 15, 2008 1:05 pm
Posts: 84
Hi everyone,
Have any of you come up with a good way to track and report on your metrics in a payroll processing in house environment. Did you use a software to do it, did you just put it in excel and measure trends, did you measure it against your own benchmarks or industry benchmarks.

Just trying to get headed in the right direction to present something to upper management.

Any help, suggestions are appreciated.

Burning up in the deep south.

 Post subject: Re: Payroll Metrics
PostPosted: Wed Jun 08, 2011 12:45 pm 
Board Guru

Joined: Mon Aug 04, 2003 7:13 am
Posts: 5283
Location: Oakland, CA
I have pretty mixed feelings about metrics, especially in a payroll context. If you have a largely unautomated systems, then metrics mean a lot. The problem is that the bigger the company, the more automation. You have a very narrow window between timesheet submission and payroll transmission that EVERYTHING must get done. Even with lots of forced overtime, a certain amount of staff is required to push a huge amount of **** through a fairly small opening. Now outside those windows, payroll has work, but tends to be overstaffed. There are some management decisions which can be made, but payroll's control over the amount of their workload is pretty much nothing, and their control over when they do their workload is limited. At best they can make sure that things do not pile up until yearend. Like imputed income.

The entire point of metrics is not just to create reports for management but to create actionable decisions based on those reports. Example. Accounts Payable generally also reports to me. I created an "invoices process by person" metric at management's request. I had maybe a 6 person AP group. The report said that my newest cheapest employees pushed a lot of invoices while my more experienced staff apparently were lazy bums who handled fewer invoices. What the metric did not say (because management asked for what they asked for) is that we were deliberately taking the newest worst trained employees and having them push easy paper. All hard invoices, the ones with many processing lines or foreign currency or approval issues were being handled by someone who actually knew what they were doing. And AP did many things other then process invoices.

For every problem, there is always a clean simple solution that does not work.

"Reality is that which, when you stop believing in it, doesn't go away".
Philip K. Dick (1928-1982)

 Post subject: Re: Payroll Metrics
PostPosted: Mon Jun 13, 2011 3:45 pm 
Regular Contributor

Joined: Sat Feb 25, 2006 6:48 pm
Posts: 227
Location: California
I depend heavily upon metrics, but I don't use them to measure error rates or anything like that. Instead, I use them to gauge the effectiveness of my automated system(s) and my cost per payment, etc. For example, I will look back on a quarter, measuring the number of payments I processed vs. the number of payroll labor dollars needed to make it happen, and come up with a cost-per-payment. Or I use employee headcount data to measure how many employees each of my payroll processors is handling, etc.

I also measure items such as my direct deposit rate, as well as the number of employees who are enrolled in a paperless paystub.

I really don't use any software for this. I simply write reports off of my payroll system in order to grab the data for the report.

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