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 Distribution13

14. We have all used dashboards…14

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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