How To Create a High Performance Payroll Office and be Acknowledged for Your Value

How To Create a High Performance Payroll Office and be Acknowledged for Your Value

Copyright © 2013 Payroll Metrics Pty Ltd

Efficiency: Skilfulness in avoiding wasted time and effort

Effectiveness: The measure of the success of something

- Error percentage rates

- Customer satisfaction

- Over payment minimisation

- Cost per employee paid per year

- Ratio of payroll office FTEs to employees

- Paperless Distribution


Series1

Series2

Number of employees paid

Ra

tio o

f Pa

y O

ffice

FT

Es

to to

tal e

mp

loye

es

pa

id

Best Practice Efficiency

1/1300 employees

1/850 employees

What explains this delta?Pay frequencyNumber of payrollsNumber of customersMaintenance volumesEmployee turnover rate

2500

1/1000 employees

1200

1000

800

600

400

200

1400

6000Copyright © 2013 Payroll Metrics Pty Ltd

UK Payroll Clerk median Salary

US Payroll Clerk median Salary

AUS Payroll Clerk median Salary

Philippines Payroll Administrator

$AU1.00=$US0.92

$26,700

$35,362

$48,900

$ 6,667

$AUAs At July 2013

Source:


<1500 16%

1501-5000 17%

5001-10000 13%

10001-25000 27%

25001-50000 15%

50001-100000 5%

100000+ 7%

HR 42%

Finance 48%

Shared Services 10%

2010 Performance Study Results

2010 Global Payroll Performance StudyHackett Group

Cost per employee per year

Paperless Distribution

Employees per FTE payroll resource

Accuracy Rate

Adjustment Rate

Overpayment Collection Rate

Inquiries Resolved on Initial Contact

1060 1245

99.9% 99.96%

79% 93%

.03% .06%

71% 68%

Americas Peer Group

61% 67%


$US104 $US74 €150 2008

Top Performers

UKMetric

Performance Study Results

Effectiveness – acknowledged value to organisation

Efficiency - do more with less

TopPerformers

MostEfficient

Most Effective

2010 Global Payroll Performance Study Hackett Group



Talking the talk But.......

Get out of here Not getting Support........Working hard...... Feelings of isolation.......


TopPerformers

Performing well



TopPerformers

MostEfficient

Automated GLI Comprehensive self service Automated Termination calculations Integrated T&A Auto payroll tax calculation Auto report generation Auto report distribution 100% digital report storage Auto employee TFN declarations Auto deduction payments Auto super payments

Efficiency - This is what payroll staff are expected to be good at

Pay staff qualities Attention to detail Numerate Quiet Retiring Introverted



TopPerformers

MostEfficient

Automated GLI Comprehensive self service Automated Termination calculations Integrated T&A Auto payroll tax calculation Auto report generation Auto report distribution 100% digital report storage Auto employee TFN declarations Auto deduction payments Auto super payments

Efficiency - This is what payroll staff are expected to be good at

Pay staff qualities Attention to detail Numerate Quiet Retiring Introverted


The Payroll Value Chain

Data Collection

AuthorisationReport

Generation &distribution

Payroll Management

Data Interpretation

PostProcess

Payments

Accounting

3rd Party Interfaces

Process&

Validation



TopPerformers

Most Effective

Services catalogue

Service Level Agreement

Customer Service Program

Customer Satisfaction survey

Performance Review

Continuous Improvement

Pay Office Talent development

How can payroll get better at:

Engaging with the organisation? Improving payroll service delivery? Being acknowledged, respected?

Is your view of who you service user departments or customers?Copyright © 2013 Payroll Metrics Pty Ltd

Services Catalogue

Service Level Agreement

Customer Services Management Program

Customer Satisfaction Survey

Performance Review


Customer Services 6 Step Framework


Service category Service Item Description

Adjustment pay Adjustment Pay form 2 hrs

Termination Pay Generate a termination pay 2 hrs

New employee Set up as new employee New Employee form 1 hr

Enter timesheets Key timesheets for a customer timesheets TBA

TBA

2 hrs

2 hrs

Add a payroll N/A 48-72 hours

N/A 4 hrs

Development N/A TBA

N/A TBA

N/A TBA

N/A TBA

Statutory change N/A TBA

Security changes 2 hrs

Edit a role 2 hrs

2 hrs

2 hrs

Delete a user 2 hrs

Request Training No of students TBA

Request Meeting Meeting description N/A

Billing Tables N/A TBA

Tax Tables N/A TBA

Documentation required

QuantityRequested Quantity

DeliveredService Level

Target

Tick if Quotation required

Transaction Processing

Generate an adjustment including reverse an existing pay

Termination Pay request form

Calculate a back pay

Back pay request form

Configuration items

Add a superannuation fund

Add super fund request form

Create a pay element

Create a pay element and add it to selective payrollsCreate a new payroll and allocate configuration items

Add/ change a rate

Define a new rate or edit an existing rate and allocate it to selected payrolls

Create a 3rd

party application interfaceCreate a report/ CSVGeneral enhancement

Request an enhancement with relevance to most customers

Customer specific modification

Request a functional modification specific to a customer

Create a new role

Create a new userChange a user's role

PayMetrics half day Introduction

Meeting agenda; date and time

Maintain Global Tables

Services Catalogue


Service Level Agreements

Develop metrics - you can't manage what you can't measure

Defines your commitments to your customers and defines your customers obligations to you.

An effective SLA will contain targets and measures

Don't prescribe you customers' commitments – i.e. payroll cut-off times - negotiate them!!


Tips for Metrics

Key is to use the “right” metrics

•Description of what is measured•How is the metric measured•How often is the measure taken•Name the metric•Who is responsible for collecting the metric•How are the thresholds calculated•Current range of values considered normal for metric•Best possible value of the metric•Units of measurement

Courtesy Brent R. Gow, Director Global payroll Starbucks Coffee Co June 2013

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

Service Level Agreements


1. Log every request

2. Prioritise requests

3. Categorise requests5. Request execution

6. Closure

4. Escalate If required

Service Request Management

Customer Services Management

Create a Service Desk

Give responsibility for the service request management cycle to the Service Desk


Customer Satisfaction Survey

Keep the ratings questions the same from survey to survey

Measure performance Identify trends Provide a basis for benchmarking

Use the sat survey to ask again what your customers' real problems are


Performance Review

Don't have a performance review if you know there are outstanding problems/ issues with your customer

fix them beforehand

Base the review on the metrics for the review period

Your performance The customer's performance

Use the performance review to ask the customer again to define the major problems


• Performance Improvement against Metrics• Automate the customer services cycle• Problem resolution• Review technology

– Process Automation

– Mobile technology


Courtesy Brent R. Gow, Director Global payroll Starbucks Coffee Co June 2013.

Pay Office Talent Development and Management

A key finding from the Hackett survey was that high performers had high staff retention

Recruitment Strategies – Devise an entry test

Establish a training and accreditation program


Payroll Process Labor Distribution


Thank you

Questions?


Business

How To Create a High Performance Payroll Office and be Acknowledged for Your Value