Understand needs through Payroll Metrics and Dashboards Empower Your Organization! September 11,...

Understand needs through Payroll Metrics and Dashboards

Empower Your Organization!

September 11, 2014

Diane Hirt - Presenter

Copyright Kivala-HR 2012 2

Introduction

Diane Hirt – VP Business Process & Strategy for KivalaHR

Over 25 years of experience in payroll operations and HCM systems focusing mainly on Service Delivery models and how to enhance and optimize processes eliminating manual and redundant tendencies.


Benchmarking

Few payroll departments have the time, resources or authorization to pursue date for a benchmark exercise. Just 17% of payroll departments attempt to benchmark their performance and efficiency against other payroll offices.

YesNo

17%

83%

BNA 2013/2014


Understand Your Needs

Organization

• Silo

• Integrated

Processes

• Aligned

• Scattered

Unsure

• Status Quo

• Stuck in Day to Day


Silo vs. Integrated

Silo Workflow

People

ProcessTechnolog

y

Integrated Workflow

People

Process

Technology


Cost Containment & Efficiency Initiatives

Most common ways to cost reductions and performance improvements:

• New or Revised Procedures

• Establish Performance Metrics

• Upgrade or Enhance Hardware or Software

• Automation of Manual or Redundant processes

• Automated Time and Attendance

• Staff Training

• Outsource What Makes Sense


Address Challenges

• Common Pain Points• Segmented or “Silo” approach for processes• Duplication of data entry, manual interventions for transactions

• What is Working – What is Not Working• Hold workshops with all departments and workflow process end to

end• Align and understand hand-off’s• Open forum with open minds. Have a mediator if necessary to run a

neutral workshop

• Identifying Gaps/Disconnects• Through the process flows and open dialogue• Have an agenda and next steps• Create an action plan


Payroll Metrics


Create Payroll Metrics

A payroll metric is the best way to monitor the payroll department. It has to be specific to your department and may not be the same for every payroll department.

Effective metrics should:

• Support Decision Making

• Measure Performance

• Identify Trends

• Define Baselines

• Provide a basis for benchmarking

• Support Corporate Scorecard


Payroll Metrics Ideas

• Average number of payroll payments per employee• Payroll costs compared to administrative expenses• Percentage of employees receiving a check vs. direct deposit• Number of off cycle or manual checks per pay period• Number or percentage of manual checks vs. regular payroll payments• Paid time off hours and/or dollars vs. percentage of total paid hours• Number of off cycle or manual checks due to payroll or time errors• Number of off cycle or manual checks due to incorrect employee data• Overtime hours as a percentage of total hours worked• Number/percentage of tax abatements• Percentage of penalties and interest paid on total gross wages• Percentage of penalties and interest paid on total taxes• Percentage of penalties and interest paid on late payment of garnishments


Why are Payroll Metrics Important?

You can not manage what you don’t measure

If you can’t measure then you cannot improve

It cannot be defended if it isn’t measured


Tips for the Right Metric

Make sure the metric is measurable How often should it be measured and communicated Who is the audience? How do you calculate the thresholds What is the current range of values which are considered normal Best possible value of the metric Units of measurement Get buy-in at the right level Apply value to the metric and the outcome for improvements Make sure the right parties are held accountable for the outcome of

each metric


Payroll Dashboard


Payroll Dashboards

• Dashboards should tell a visual story• Have the ability to drill down for more detail and be dynamic• A quick glance at data that is important to run the business• Provides info on Key Performance Indicators• Normally has a way to quickly identify a problem with a warning in the form

of (red/green/yellow)

A visual representation to monitor business activity and to understand the “health” of the payroll


Payroll Dashboard Sample Data


Payroll Scorecard


Sample Department Scorecard

Electronic Payments _____% -Direct Deposit _____% -Debit Cards _____%

Electronic Statements ______%

Total number of payments _______

Total $$ of payments ________

Customer Feedback

-Highly Satisfied ____% -Moderately Satisfied ____% -Somewhat Satisfied ____%

Payroll Team

____ Years of Experience

Attended ____ Hours of Training

Manual CheckGo Green

-Payroll Error Rate ____%

-Field Error Rate ____%

-Uncontrolled (layoff/term) ____%


“Visual” Sample Scorecard

0

10

20

30

40

50

60

DirectDeposit

Exempt

Non-Exempt

Customers are saying…”they are Highly Satisfied”

HighlySatisified

ModeratelySatisified

SomewhatSatisified

0

10

20

30

40

50

60

70

80

90

100

1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

Hours of Training

Years of Experience

Pay Cards

Go Green96%

Electronic

68%

78%

15%

7%

Payroll Team Mitigates Risk and Manages Compliance with..

25 Years of Experience

120 Hours of Training

6,876 Payments

$985,000

Manual Check

2% Payroll Error

89% Field Error

8% Uncontrolled


Questions?


Appendix

Kivala-HR facts and figures


International Consulting company

Offices in USA and Europe

115 consultants dedicated to HCM

Revenue approximately 20 Million USD

Over 75 successful projects delivered

Official SAP and SuccessFactors partner

Partnering in several co-innovation topics

(Fiori, SF, ECM, Talent on demand)

Delivered award-winning project for Roche (CHRIS)

Accredited by the Pharmaceutical Supply Chain Initiative

(PSCI) for sustainability

Average of 12.5 years SAP experience across the group

Spain

GermanySwitzerland

Europe

North America

U.K.

• HR system & service strategy

• Business process design & optimization

• Learning & Development strategy

• Business case development

• SAP HCM Implementation

• SuccessFactors Implementation

• Portals, Employee & Manager Self-Service

• Business Intelligence, KPI, Dashboards

• Mobile Solutions

• Custom application development in SAP

• Data migration, Data archiving

• HR data security, authorizations,

compliance

• System Integration

• Program & project management

• Project milestone reviews

SAP HCM security, audits & compliance

• Test management strategy & execution

• Data management & archiving strategy

• Training Management

• Service Delivery Design and Setup

• Process Optimization

• Operational support and Outsourcing

• Continuous improvement services

• Service Center Training

• Application maintenance

• Project & end-user training

• Release upgrade services

• Data management

Managing &

Coaching

HR Service Delivery

Management

Maintenance &

Support

Implementation &

Technology

Business Consulting

• End to End Service Portfolio

22Copyright Kivala-HR 2014


• Our clients can benefit from a complete service offering around SAP and SuccessFactors HCM

• HR system & service strategy

• Business process design & optimization

• Outsourcing advisory

• Business case development

• On-demand integration

• U.S. Payroll

Business Consulting

• Core SAP HCM

• Talent management solutions

• SuccessFactors

• HR data security, authorizations, integrity & compliance

• Portals, Employee & Manager Self-Service

• Mobile Solutions & Dashboards

• Enhancements & Custom application development in SAP

• Legacy data migration

• Integration

• Hybrid Solutions

Implementation & Technology

• Application maintenance

• Project & end-user training

• Release upgrade services

Maintenance & Support

• Servicing & system strategy alignment

• Servicing (re-)design & process definition & automation

• Transition

• Operations support

• Continuous improvement services

HR Service Delivery Mgmt.

• Program & project management

• Project milestone reviews

• SAP HCM security, audits & compliance

• Test management strategy & execution

• Data management& archiving strategy

• U.S. Payroll Training

Managing & Coaching

Our Service Offering

Understand needs through Payroll Metrics and Dashboards Empower Your Organization! September 11,...

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