What to measure?Then the question b

What to measure?
Then the question becomes: “What to measure?“ What is critical to one organization may not be important to another, but the idea here is to determine the critical areas in your organization and determine how measurements can be defined. One of the key factors in setting up these performance indicators is to have a transparent system in place so that each item is handled in a consistent way. In this way the human factor is not being monitored as much as the process that supports the interaction. For example, to meet the federal requirements of the Family Medical Leave Act (FMLA), payroll needs to have processes in place to review the application for eligibility and monitoring the leave if it is granted. Once the process is in place, then performance benchmarks like eligibility review turnaround time can be set and monitored on a monthly, quarterly or annual basis.

The trick to setting up KPI definitions for your Payroll department is to determine which processes are critical to supporting the organization’s employees. How can the processes and systems be improved to make employee’s experience with HR and by extension the organization better?

Here are some examples to get you thinking about prospective KPI definitions for Payroll:

Total payroll compared to last period
– The ‘appropriate period’ is adjustable to your specific instance; it merely needs to remain stable once set.
Percent (%) of new employees
Percent (%) of terminated employees
Cost per payroll per 100 employees
Total payroll to gross revenue
Average assets per employee
Percent (%) of manual payroll payments
Number of payroll transactions
Cycle time to process payroll
This is just a small sampling of all the possible