A payroll system is not just responsible for paying employees, the software also keeps record of hours worked, wages, taxes, other deductions, sick days, leave and much more. Because of this, there is a huge amount of data which can provide you as a business owner or manager with invaluable insights into your people, processes, productivity and business performance.
Unless you use this data, all these insights can go to waste. Let’s explore three ways to make the most of these insights.
Use your insights to improve performance
A lot of information held in your payroll software can translate into team performance. A good system means you should be able to clearly track staff leave requests, sick days or training hours. Having electronic records means you have up-to-date and always available information, allowing you to forecast when teams might be carrying extra weight due to team members on holiday or have been working harder to cover a co-worker.
Tracking staff training hours can be a great tool to ensure your staff remain engaged and continually improving, being able to see if an employee has gone for over a year without further training gives you the opportunity to talk with them about proactively up-skilling themselves.
It is insights like these that gives management a clear indication of your people’s career progression and the ability to succession plan.
This information can also be used to make sure that those who are eligible for a promotion or pay rise stay engaged in working towards these goals. You will get so much more out of your staff if they are actively aware of their career projection and development plans.
Decrease staff churn
When you have a lot on your plate it can be easy to miss things, so your payroll data can highlight issues before they arise. For example, the software can be used to identify an employee that is likely to be a flight risk to the organisation. By drawing attention to these possible concerns, you are giving your managers the ability to put processes in place to minimise employee churn.
By tapping into historical data, you can also assess whether a staff shortage is seasonal, illness-related or perhaps a sign of bigger issues. By combining payroll and human resources data you can gain valuable insights into staff turnover, which helps you to better understand employee morale and make informed business decisions.
Forecast your financial position
Generally speaking, a large portion of a company's expenses are made up of employee salaries and benefits. To accurately forecast outgoing costs many businesses rely on information that is available within a payroll systems to calculate projected budgeting. Without accurate information, these budgets can be fundamentally flawed, which can adversely affect efficiency and projected profits. As your business grows, you’ll want to continually look for more efficient and accurate ways to improve staff productivity. By adopting and utilising an intelligent payroll system you will be in a better position to make informed decisions around employee numbers and budgeting.
As the market for key talent becomes more and more competitive, an increased level of accuracy and efficiency can make a huge difference when it comes to your business competing for talent.
It’s important to know that your payroll software does far more than just paying employees - make sure you are reaping all the benefits of an intelligent payroll system.