Transcript Payroll Scorecard

Metrics and Dashboards
Presented by: Brent R Gow, CPP
Director Global Payroll, Starbucks Coffee Co
Agenda
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Why Payroll Metrics are Important
Types of Payroll Metrics
Review Purpose of the Dashboard
Developing an Organizational Scorecard
Using Metrics Tell a Story
Integrating Payroll Metrics Throughout the
Organization
Effective Metrics
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Support decision making
Measure performance
Identify trends
Define baselines
Provide a basis for benchmarking
Support Corporate Scorecard
Using Metrics to Build Relationships
• Use metrics to support and build upon relationships, but
not to replace them
• Strong value in maintaining an ongoing dialogue
between your customer groups and at various levels
• Strategic (Executive)
• Tactical (Manager)
• Operational (Employee)
• Listen carefully to your customers! Understand their
needs and their challenges
• Create a win-win together
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Data Based Decision
• “You can not manage what you don’t measure”
• “If you can not measure it you can not improve it”
• “You can not defend it if you have not measured it”
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Payroll Metrics
Costs/Volumes
• Payroll costs/administrative expenses (%)
• Payees processed per FTE in Payroll
• Average number of payroll payments per employee
• Percentage of employees on direct deposit
• Percentage of employees receiving checks
• Percentage of employees with both check and
direct deposit
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Payroll Metrics
Costs/Volumes
• OT hours as a percentage of total hours worked
• Paid time off hours/$ as percentage of total paid
hours/$
• Number of Special Checks (i.e., Off-cycle Payments)
• Number/Percentage of manual checks vs. system
generated checks
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Payroll Tax Metrics
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Number of entities & tax jurisdictions for enterprise
Number of provincial jurisdictions per entity
Employer taxes as a percentage of total wages
Percentage of penalties/interest paid on total taxes
Percentage of penalties/interest paid on total gross
wages
• Number/percentage of tax abatements
• Number/percentage of timely payments/reports
• Number/percentage of late payments
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Training Metrics
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Percentage of employees who participate in training
Average number of employee hours spent training
Amount of Training Dollars per employee
Employees with expired certifications and licenses
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HR Metrics
• Total Number of Hired
• Gender Staffing
Breakdown
• Internal Hires / External
Hires
• Performance Rating
Distribution
• Employee Engagement
Level
• Average Time to Fill
• Performance Appraisal
Participation Rate
• Compensation
Competiveness
Compared to External
Market Benchmarks
(gap to market)
• Average Performance
Appraisal Rating
• Termination Rate
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HR Metrics
• Leadership Gender
Breakdown
• Age Staffing Breakdown
• Average Workforce Age
• Average Employee
Compensation
• Type of Hires
• Ethnic Background Staffing
Breakdown
• Average Merit Increase for
Each Performance Rating
• Health Plan Enrollment
Rates
• Average Workforce
Tenure
• Transfers
• Internal Hire Rate
• Retention Rate
• Employee Satisfaction
with Training
• Benefits Expense per FTE
• External Hire Rate
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Training Metrics
Quality
• Percentage of errors by type
• Payroll department error
• Manager / supervisor error – timely, accurate
• Employee error – time reporting not submitted
• Number of amended T-4 statements
• Number of Amended Tax Returns
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Payroll Process Cost Distribution
Payroll Process Labor Distribution
5%
7%
28%
10%
Customer Service
EE Time Processing
HR Data Maintenance
Input Processing
Controls-Reconciliation
16%
7%
Payroll Processing
Document Management
5%
Tax Filing
22%
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We have all used dashboards…
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Dashboard
Proactive Management Tool
• Visual representation Monitoring Business Activity
to understand the “health” of a business
• Provides info of Key Indicators
• Information can be in the form of:
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Warnings
Action Notices
Next Steps
Summaries of Business Conditions
• Dynamic (Drill Down Capability)
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Dashboard Example
Measure
Accuracy
Manual payments
outside payroll
Service Desk
(Total calls)
Values
99.00%
1.00%
3.72%
Percentile
Ranking Place
Measure Description
15th
% Payslips produced without error
(only those errors reported to Call Center)
(calculated as % of payslip volume in month)
Green ≥99% Amber ≥98% Red is <98%
75th
% of manual payments made outside of payroll
(calculated as % of payslip volume in month)
Green ≤1% Amber ≤98% Red is >98%
15th
% of calls received
(calculated as % of payslip volume in month)
Green ≤4% Amber ≤8% Red is >8%
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Scorecard
• Provides collection of reflective measures
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Performance of key business processes
Financial perspectives
Customer perspectives
Learning and development perspective
(i.e., Training)
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Sample Scorecard
Payroll Scorecard
Categories
People
Metrics
March
Salaries actuals to plan (Fiscal)
April
Target
Notes
($87,992) Favorable $61,119 Unfavorable
Planned vs. Actual FTE's
33:28
33:29
New hire in April
Payroll
Metrics
Check Processing Efficiencies
% Direct Deposit (CN)
March
97.04%
Target
April
96.86%
98%
842
929
N/A
28,146
28,257
N/A
% of electronic vouchers (CN)
100%
100%
# of Manual Cheques
2,119
1,468
N/A
0.64%
0.55%
<1%
422
414
<100
# of printed checks (CN)
# of vouchers (CN)
Manual Cheques as % of total statements
Check Reissue
Tax
March
Target
April
Notes
lower due to new hires
reduction due to timely payroll transmission
Notes
# of Tax Returns filed
N/A
327
N/A
Qtly reporting
# of Tax Deposits
N/A
1422
N/A
Qtly reporting
Total $ Amount
N/A
$209,998,015.18
N/A
Qtly reporting
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Department Scorecard
Go Green
Electronic Payments
-Direct Deposit
-Debit Cards
Under Budget
_____%
_____%
_____%
___% of Total Budget
Electronic Statements ______%
Total number of payments _______
Total $$ of payments
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Customer Feedback
-Highly Satisfied
____%
-Moderately Satisfied ____%
-Somewhat Satisfied ____%
Payroll Team
____ Years of Experience
Attended ____ Hours of Training
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Department Scorecard
(with Graphics)
60 68%
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Go Green
86%
Electronic
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30
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5,867
Payments
Fiscally Responsible
98% of Total Budget
Exempt
Non-Exempt
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Direct
Deposit
Pay
Cards
$500,000
Customers are saying…”they
are Highly Satisfied”
Payroll Team Mitigates Risk and
Manages Compliance with..
100
7%
90
Highly
Satisified
Moderately
Satisified
Somewhat
Satisified
15%
78%
80
70
60
50
40
120 Hours of Training
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20
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Hours of Training
Years of Experience
44 Years of
Experience
0
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
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Training Scorecard
Quarterly Review Held:
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
3/15/11
6/28/11
9/20/11
12/15/11
Individual Goal:
To become a Certified Payroll Professional (CPP) and then move into a management position.
Background:
• 5 years of payroll administration
• 5 years of customer service
Training Activities
Target
Take Knowledge Assessment
01/31/11
Attend Chapter Study Group
05/20 – 8/15
Attend Fall Forum
09/2011
Sit for CPP Examination
09/2011
Accomplishments
Knowledge Assessment Completed
Attended APA Web Based Training Course
Status
Manager Feedback
• Recommended Cindy become Certified to
continue progress on her career path to a
management position.
• After CPP is obtained, additional knowledge and
experience is needed in Management that will be
offered internally.
Next Steps
 Complete Inventory of Management Skills
 Complete Development Plan
 Attend Chapter Study Group
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Benchmarking
Metric
Top Performer
Peer Group
2012
2011
2012
2011
$41
$49
$84
$90
Process
Cost/Payment
$1.76
$2.06
$2.75
$3.03
Error Rate
.02%
.01%
.06%
.02%
Paperless Payment
Distribution Rate
90%
81%
76%
67%
1%
1%
2%
3%
Process
Cost/Employee
Percent Off-Cycle
Payments
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Tips for Metrics
Key is to use the “right” metrics
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Name of the Metric
Description of what is measured
How is the metric measured
How often is the measure taken
How are the thresholds calculated
Current range of values considered normal for metric
Best possible value of the metric
Units of measurement
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Data Sources
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HR/PR Database
Financial Database
Call Center Database
Project Management Database
Time and Attendance System
Excel Spreadsheets
Paper “Stickies”
Other
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Value Proposition:
“Payroll Department Data Correlates to Bottom
Line Success”
Metric: Timeliness of Termination Notification
Days Late for Notification
Manager
Terminations
Late
Terminations
Company
Property
Organization
Ongoing Expense
$$
Increased Cost
of Expenses
(Phones/ PC’s)
Decreased
Profits
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Data Collection Tool
Performance
Measure
How will data be used?
Operational
Definition
Data
Source and
Location
Sample
Size
Who will
Collect?
Frequency
of
Collection
How will Data be
Collected?
How will data be displayed
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Data Collection Tool
Performance
Measure
Cost Per
Paycheck
Cost Per
Employee
Operational
Definition
Data
Source and
Location
Sample
Size
Who will
Collect?
Frequency
of
Collection
How will Data be
Collected?
Total Expenses/
Number of Checks
Produced
BudgetExpenses
To Date
and Payroll
Registers
100%
Payroll
Manager
Quarterly
Manually
Total Expenses/
Number of Active
Employees +
Terminated
Employees
BudgetExpenses
To Date
and Payroll
Registers
100%
Payroll
Manager
Quarterly
Manually
How will data be used?
How will data be displayed
Report for Management
Scorecard
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Scorecard Integration
• Reflect company strategy
• Foundation on company goals
• Mission, purpose and objective must be defined
• Agreed upon measures
• Tied into individual goals
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Building the Foundation
1. Begin with the end in mind
2. Define a clear goal
3. Gain buy in from users
4. Design reporting templates
5. Identify data sources
6. Determine Frequency
7. Estimate overall effort
8. Understand audience needs
9. Align with organizational goals
10. Integrate with recognition: performance or bonus
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Thank you
Please complete your evaluation