Unused or underutilized payroll data causes wasted HR
staff time, as duplicated efforts and work often ensue to make up for this data
gap. Here are several significant areas where your HRMS payroll data can add
value to your business:
1) Use “datification” to drive business
choices
The availability of data
in your HRMS today has progressed greatly from 10 years ago. HRMS are
able to collect many data elements across a wide area of HR functionality. The
challenge is to make the jump from a collection of fields to useful business
insights or “datification”—data-based decisioning. For example, overtime costs are
a drain on any budget and often receive close scrutiny as a standalone
activity. It’s necessary to take this data a step further and follow the system
trail back to the source. Does your HRMS Absence module allow you to extract
last-minute call-outs and tie them back to overtime? Or is your overtime due to
a perennial staff shortage? If a lack of headcount is the answer, is the reason
related to budget constraints in hiring, or are requisitions slow to be filled?
For better decision-making, use the HRMS data to bring payroll data together
with other HR data to paint the full picture and drive toward anticipating and
predicting costs.
2) Payroll data creates the “full employee
picture”
Are your HR, Compensation, and Payroll staff a strong
team working together, or do you have silo efforts? There are situations where employee pay
reviews by compensation
professionals that determine that an equity adjustment is needed.
However, it’s a faulty analysis when it only focuses on base pay and leaves
behind “traditional” payroll data, such as a myriad of allowances. Your
Compensation and Payroll staff must be on the same page for strategic reviews
in order to get the best results for your organization as well as for your
employees. A referral bonus probably should not be considered as part of an
employee’s total compensation, but one-time bonuses that happen with regularity
are often missed. This is where your HRMS payroll data needs to be reviewed
and, potentially, used.
3) Payroll data allows a linkage to bottom-line
financials
Do you perform a variety of necessary and important tasks
in your organization, but find that ultimately they are not linked? For
example, we all go through an annual budget process to create an HR budget, and
it is often reviewed with the actuals of the prior year to determine how
closely it was kept. Then there are annual merit processes in which employees
are rewarded for peak performance. The HRMS keeps the performance
review data as well as the salary increase percentages. How
often do you bring the performance data back into your budgetary process? Does
your line item for salary increases reflect a majority of “average” performers
in low-cost locations? Payroll data lets you compare and make a link to ensure
that your estimates allow you to pay for top performers as well.
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