When is the last time your business assessed its payroll systems? Nearly a third of businesses are coasting on solutions put in place more than 10 years ago—even before the great recession. This is likely due to the fact that many organizations do not actively measure and analyze this essential process for necessary performance standards. Results of a new study by Kronos Incorporated in partnership with the American Payroll Association called "Evolution of Payroll Technology Trendline Survey" should have many leaders wanting to look inward and evaluate their payroll system's performance. Its findings suggest a concern over keeping up with the speed of modern business on systems not built with today's biggest needs in mind.
Half of Businesses Do Not Track Payroll Performance
According to the survey of 1,000 payroll professionals from small to enterprise-size organizations, 49% of businesses simply do not track payroll performance. This is a likely side effect of relying on systems that do not offer the capability or ease to measure and report, serving mostly as a transactional device. This should be a greater concern because payroll performance does have important and direct impact on key business outcomes.
Take a moment to see whether your payroll system offers the ability to easily capture these often valuable metrics that indicate performance and accuracy:
- Measuring manual, voided, and stopped payments
- Payment errors as a percent of total payroll payments
- Total processing time per pay cycle
- Response time for employee requests (daily, weekly, and monthly)
These measurements can help prevent costly financial errors and the resulting corrections as well as important impacts on employee engagement.
The Longer You Wait to Update, The More Difficult It Is to Adapt
Consider also your system's ability to adapt to the fast pace of change in today's business environment. Annually evolving business goals and organizational changes (new leadership and strategic direction) are common challenges that payroll departments need to adapt to, and fast. Less common but more challenging are acquisitions and mergers resulting in blending or migrating payrolls systems, which 25% of respondents claimed were the most difficult changes to overcome. With more current systems in place, all parties might find these transitions overall easier to handle.
How long has it been since you evaluated your payroll solution? And how well is it integrated across your workforce management system? Does the current solution or configuration empower payroll, management and workforce (whether full-time, part-time, hourly, or seasonal)