Your payroll software does more than just paying employees, keeping records of hours worked, calculating wages, taxes and other deductions - it also holds a tremendous amount of information which provides valuable insight into your systems and processes. This understanding inevitably improves employee engagement.
Are you currently making the most out of your payroll software data?
In this piece, we'll reveal three ways which data held in your payroll system can improve productivity and help align your strategy to achieve the company’s goals.
1. Use data to establish better performing teams
Good payroll software can help an organisation track staff leave requests, including sick leave so managers can be confident no leave application is ever missed or lost in the system. Because leave applications are no longer just paper-based but electronic, always up-to-date and available at any time.
This translates to a more efficient payroll process, which in turn increases payroll team productivity.
Payroll software also tracks staff training hours, so an organisation is aware its employees are up-skilling (proactively). This gives management a great indication of staff career progression and the ability to ensure the right team members are on the job. This information is also a good tool to gauge eligibility for promotion or pay raises. By ensuring staff are actively aware of their career direction and future development, a business can promote deeper engagement and involvement from its employees.
2. Use payroll data to understand staffing shortages
Payroll data can be used to identify and highlight employees who are a flight risk to the organisation. This, in turn, helps managers put processes into place to minimise employee churn.
By tapping into historical data, you can assess whether staff shortages are seasonal, illness-related, or a sign of bigger issues at play. By amalgamating payroll data and human resources data, you can uncover reasons for staff turnover. By understanding the exact reasons behind turnover you'll be in a better position to make informed business decisions.
3. Use payroll data for financial forecasting
Employee salaries and benefits account for a big part of a companies' expenses. To better forecast expenses, many businesses are able to rely on available payroll system data to accurately calculate figures for projected budgeting. Without this level of accuracy, budgets can be fundamentally flawed, adversely affecting efficiency and project profitability.
As your business grows, you'll want to continuously look for more efficient and accurate ways to improve staff productivity. By adopting an intelligent payroll system, you can rest assured that you'll be better equipped to make more informed decisions around staffing and budgeting.
As markets become more competitive, an increased level of accuracy and efficiency can be a key factor in helping your business achieve its goals and stand out from the crowd.