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Metrics and Dashboards

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Presentation on theme: "Metrics and Dashboards"— Presentation transcript:

1 Metrics and Dashboards
Presented by: Brent R Gow, CPP Director Global Payroll, Starbucks Coffee Co

2 Agenda 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

3 Effective Metrics Support decision making Measure performance
Identify trends Define baselines Provide a basis for benchmarking Support Corporate Scorecard

4 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 4 4

5 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” 5 5

6 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 6 6

7 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 7 7

8 Payroll Tax Metrics 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 8 8

9 Training Metrics 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 9 9

10 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 10 10

11 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 11 11

12 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 12 12

13 Payroll Process Labor Distribution

14 We have all used dashboards…

15 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: Warnings Action Notices Next Steps Summaries of Business Conditions Dynamic (Drill Down Capability) 15

16 Percentile Ranking Place
Dashboard Example Measure Values Percentile Ranking Place Measure Description Accuracy 99.00% 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% Manual payments outside payroll 1.00% 75th % of manual payments made outside of payroll (calculated as % of payslip volume in month) Green ≤1% Amber ≤98% Red is >98% Service Desk (Total calls) 3.72% % of calls received (calculated as % of payslip volume in month) Green ≤4% Amber ≤8% Red is >8% 16

17 Scorecard Provides collection of reflective measures
Performance of key business processes Financial perspectives Customer perspectives Learning and development perspective (i.e., Training) 17

18 reduction due to timely payroll transmission
Sample Scorecard Categories Payroll Scorecard People Metrics March April Target Notes Salaries actuals to plan (Fiscal) ($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) 97.04% 96.86% 98% lower due to new hires # of printed checks (CN) 842 929 N/A # of vouchers (CN) 28,146 28,257 % of electronic vouchers (CN) 100% # of Manual Cheques 2,119 1,468 reduction due to timely payroll transmission Manual Cheques as % of total statements 0.64% 0.55% <1% Check Reissue 422 414 <100 Tax # of Tax Returns filed 327 Qtly reporting # of Tax Deposits 1422 Total $ Amount $209,998,015.18 18

19 Department Scorecard Go Green Under Budget Electronic Payments _____%
-Direct Deposit _____% -Debit Cards _____% ___% of Total Budget 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 19

20 Customers are saying…”they are Highly Satisfied”
Department Scorecard (with Graphics) Pay Cards Go Green 86% Electronic 68% 78% 15% 7% Fiscally Responsible 98% of Total Budget Payroll Team Mitigates Risk and Manages Compliance with.. 44 Years of Experience 120 Hours of Training 5,867 Payments $500,000 Customers are saying…”they are Highly Satisfied” 20

21 Training Scorecard 21 Manager Feedback Accomplishments Next Steps
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 3/15/11 6/28/11 9/20/11 12/15/11 Quarterly Review Held: 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 Manager Feedback Training Activities Target Status Take Knowledge Assessment 01/31/11 Attend Chapter Study Group 05/20 – 8/15 Attend Fall Forum 09/2011 Sit for CPP Examination 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. Accomplishments Next Steps Knowledge Assessment Completed Attended APA Web Based Training Course Complete Inventory of Management Skills Complete Development Plan Attend Chapter Study Group 21

22 Benchmarking Metric Top Performer Peer Group Process Cost/Employee $41
2012 2011 Process Cost/Employee $41 $49 $84 $90 Process Cost/Payment $1.76 $2.06 $2.75 $3.03 Error Rate .02% .01% .06% Paperless Payment Distribution Rate 90% 81% 76% 67% Percent Off-Cycle Payments 1% 2% 3% 22

23 Tips for Metrics Key is to use the “right” metrics 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 23

24 Data Sources HR/PR Database Financial Database Call Center Database
Project Management Database Time and Attendance System Excel Spreadsheets Paper “Stickies” Other 24

25 Metric: Timeliness of Termination Notification
Value Proposition: “Payroll Department Data Correlates to Bottom Line Success” Metric: Timeliness of Termination Notification Days Late for Notification Manager Company Property Organization Ongoing Expense Terminations $$ Correlation to Business Measurements Workers’ Comp Experience High Turnover Property (Phone, Credit Card, PC) Unemployment Experience Rating Leakage of Labor Expense Overpayments, Absence Mgmt Late Terminations Increased Cost of Expenses (Phones/ PC’s) Decreased Profits 25

26 Data Collection Tool 26 Performance Measure Operational Definition
Data Source and Location Sample Size Who will Collect? Frequency of Collection How will Data be Collected? How will data be used? How will data be displayed 26

27 Data Collection Tool 27 Performance Measure Operational Definition
Data Source and Location Sample Size Who will Collect? Frequency of Collection How will Data be Collected? Cost Per Paycheck Total Expenses/ Number of Checks Produced Budget-Expenses To Date and Payroll Registers 100% Payroll Manager Quarterly Manually Cost Per Employee Number of Active Employees + Terminated Employees How will data be used? How will data be displayed Report for Management Scorecard 27

28 Scorecard Integration
Reflect company strategy Foundation on company goals Mission, purpose and objective must be defined Agreed upon measures Tied into individual goals 28

29 Building the Foundation
Begin with the end in mind Define a clear goal Gain buy in from users Design reporting templates Identify data sources Determine Frequency Estimate overall effort Understand audience needs Align with organizational goals Integrate with recognition: performance or bonus 29

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