Metrics and Dashboards
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Transcript of Metrics and Dashboards
Metrics and DashboardsPresented by: Brent R Gow, CPP
Director Global Payroll, Starbucks Coffee Co
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
Effective Metrics• 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 together4
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• 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
• 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• Performance Appraisal
Participation Rate • Compensation
Competiveness Compared to External Market Benchmarks (gap to market)
• Average Performance Appraisal Rating
• Termination Rate
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• Total Number of Hired• Gender Staffing
Breakdown• Internal Hires / External
Hires • Performance Rating
Distribution • Employee Engagement
Level • Average Time to Fill
HR Metrics• 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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• 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
Training MetricsQuality• 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 Labor Distribution
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We have all used dashboards…
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DashboardProactive 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)
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Dashboard Example
Measure ValuesPercentile
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 paymentsoutside 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% 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
1. Performance of key business processes2. Financial perspectives3. Customer perspectives4. Learning and development perspective
(i.e., Training)
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Sample ScorecardCategories 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 March April Target Notes
% 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 N/A
% of electronic vouchers (CN) 100% 100%
# of Manual Cheques 2,119 1,468 N/A reduction due to timely payroll transmission
Manual Cheques as % of total statements 0.64% 0.55% <1%
Check Reissue 422 414 <100
Tax March April Target 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 ScorecardGo Green
Electronic Payments _____% -Direct Deposit _____% -Debit Cards _____%
Electronic Statements ______%
Total number of payments _______
Total $$ of payments ________
___% of Total Budget
Customer Feedback
-Highly Satisfied ____% -Moderately Satisfied ____% -Somewhat Satisfied ____%
Payroll Team
____ Years of Experience
Attended ____ Hours of Training
Under Budget
0
10
20
30
40
50
60
DirectDeposit
Exempt
Non-Exempt
Customers are saying…”they are Highly Satisfied”
HighlySatisified
ModeratelySatisified
SomewhatSatisified
0
10
20
30
40
50
60
70
80
90
100
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
Hours of Training
Years of Experience
Pay Cards
Go Green86%
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
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Department Scorecard (with Graphics)
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Training Scorecard
Manager Feedback
Next StepsAccomplishments Complete Inventory of Management Skills Complete Development Plan Attend Chapter Study Group
Knowledge Assessment Completed Attended APA Web Based Training Course
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 09/2011
• 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.
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
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
3/15/11 6/28/11 9/20/11 12/15/11Quarterly Review Held:
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BenchmarkingMetric Top Performer Peer Group
2012 2011 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% .02%
Paperless Payment Distribution Rate
90% 81% 76% 67%
Percent Off-Cycle Payments
1% 1% 2% 3%
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Tips for MetricsKey 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
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Data Sources• 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”
Manager
Late Terminations
Ongoing Expense
Company Property
Increased Cost of Expenses
(Phones/ PC’s)
Organization
Decreased Profits
$$Terminations
Metric: Timeliness of Termination Notification Days Late for Notification
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Data Collection ToolPerformance 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
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Data Collection ToolPerformance 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
Total Expenses/
Number of Active Employees + Terminated Employees
Budget-Expenses 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 Foundation1. 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
Thank youPlease complete your
evaluation