Traditionally, the number of payslips per payroll FTE is used to measure productivity in payroll. However, when this metric is used for productivity, proper consideration must be given to the industry sector which the payroll is processed in, another key factor is whether payroll is managed, inhouse vs outsourced. These factors help ensure the metric is analysed in the proper context.
Why it’s important
The number of payslips per payroll FTE is used to gauge productivity of payroll resources as a team and as individuals. Not only does this measure productivity, it helps identify issues that are negatively impacting productivity.
Top Performing payroll organisations are 56 per cent more productive than the peer group. They focus in four primary areas:
- Elimination of duplicate processes
- Simplification of inputs and outputs
- Standardising processes across the enterprise
- Implemented a single source payroll and team management platform
Although focus in these areas increases productivity, companies must also consider the sourcing method when using this metric. Because outsourcing is more productive, presents better spans of control and use fewer resources to process the payroll.
Our data shows payroll organisations that are highly productive also benefit from lower operation costs.
When using number of payslips per payroll FTE as a productivity measure, it must be normalised to include consideration for the sourcing option, number of pay cycles and number of employees.
These will all have an impact on the volume of output.
How productive is your payroll organisation?
Top performers are 56% more productive than the peer group
Did you know?
- Roughly 1.5 Payroll FTE should be responsible for payroll management of 1000 employees
- On average, for every 100 employees, there are 79 inquiries annually
- The average resolution time for a payroll inquiry is 24 to 48 hours
- The most common inquiry is related to pay slip questions – 25%
For business leaders looking at ways to boost productivity to offset increase in labour and production costs, they should consider these operational issues:
- Are there still manual processes that could be automated?
- Do processes have unnecessary steps due to system limitations?
- Is data entered in multiple places?
- Are older systems slowing down the processing time?
About Payroll HQ
Payroll is our core business, not yours. Our expertise lies in managing the complete payroll lifecycle from on-boarding to payment distributions. We’re changing the shape of the payroll outsourcing industry through innovative and fresh approaches and we want you to be part of it.
What does partnering with Payroll HQ look like?
We become your Payroll HQ
The solution completely removes the need for our Business Partners to retain payroll knowledge in-house, empowering our partners to focus on delivering results that align with the organisations’ overall strategic and financial objectives.
Access to Exceptional Payroll Talent
The Payroll HQ Customer and Employee Experience is underpinned by a highly qualified team of payroll experts, qualified to a minimum standard of Certification IV in Payroll Administration. The Payroll HQ team is located on-shore and presents a wealth of knowledge covering Australian & New Zealand payroll legislation.
Risk Mitigation and Strategy
We understand that payroll is your reputation on the line every pay cycle. Through a robust risk management and governance framework, aligned with strategic thinking, Payroll HQ delivers a tangible impact on your bottom line and importantly provides certainty around compliance.
Partners for Today and Tomorrow
We are ready for new age workplaces. The Payroll HQ platform assists in automating and enhancing the employee experience, ensuring that our Business Partners are digitally switched on and ready to compete within evolving marketplaces.
The headline we aim for around payroll is that we guarantee to keep our Business Partners out of the headlines – and that’s a headline worth writing about.
About Payroll HQ
Payroll HQ is an Australian owned and operated managed payroll practice. The Payroll HQ service provides various payroll packages which allow businesses to be completely free of payroll and save money in the long run. Payroll HQ is not just an accounting software to pay employees, it is a cloud-based, real-time payroll software solution which successfully manages payroll operations for big and small businesses.
Why not take our Payroll Compliance Scorecard and see the areas your payroll function can improve.
Download your free eBook, In Safe Hands – How To Make Outsourcing Work For You, a blueprint for employers transitioning to a managed payroll model while retaining complete control of the function. Payroll disasters are readily reported in the press, can cause significant fines for non-compliance, major brand damage and poor employee morale. If you want to ensure that you are running payroll best-practice in 2020 and beyond, this book is for you.