Payroll metrics can, and it will change. That goes for everything else in life too. Payroll is an important part of businesses and all industries, because without proper pay distributed to employees, you will not be able to obtain and keep them for a very long period of time. Employees are employed to get paid, so pay them for their work, and don’t forget to merit their success, and offer them their rewards for doing such a good job as your employee. But as you would use metrics to merit an employee’s success, work, and failures, you yourself, as a company, business, or privately owned organization must merit your financial reports as well as payroll processes too.
Payroll Metrics, Let’s Get Started
Just like marketing, payroll needs to offer a product or service that meets a company’s goals and investments. A company pays the payroll service team to provide a service that will in turn bring some sort of return on their investment for the business to actually give reason to keep the payroll service, but to be clear here, all businesses need to have some sort of professional doing payroll for them, including taxes, etc., if you don’t know how to do it yourselves. The payroll service’s proper goal is to make sure payroll and its likeness are handled efficiently and in a cost effective manner.
You can use payroll metrics (KPI’s = Key Performance Indicators) to make sure the payroll service is being optimized as a vital investment for your business. So, you will use KPI’s, aka payroll metrics, to determine if the payroll service is currently doing a good job as part of your business’s operations. Some metrics you would use to determine if the payroll service is a valid investment is to determine if they pay your employees accurate paychecks, and to determine if the cost of the payroll service for the output the payroll service provided to your company is another payroll metric worth evaluating.
Payroll Metrics Example
Metrics are indicators in data that provide a certain mark, or level of understanding, which you can measure. So understanding your time and attendance of your employees in the payroll process is a payroll metric to look at, because that determines a business’s pay towards their employees. Making sure time and attendance is actually recorded properly is another metric to analyze in the payroll processing system, and whether the data is inputted into the payroll processing system correctly is another payroll metric to look at, to make sure there isn’t any human or technological errors occurring in the payroll process.
We Just Now Described Three Payroll Metrics in the Payroll Process:
- Understanding your employees time and attendance for the current payroll process is a payroll metric
- Making sure time and attendance of employees is actually recorded is another payroll metric
- Whether data in the payroll processing system is accurately registered from the time and attendance sheet is another payroll metric to analyze
These three metrics are just three minor examples of what payroll metrics are in the payroll process.
But! Different questions arising in payroll calls for different payroll metrics. So knowing your companies goals and objectives in terms of payroll will determine the proper payroll metric to utilize.
So the question really isn’t when or how will payroll metrics change, rather the question is, what kind of payroll metric (or KPI) will you use to meet your companies goals and objectives?