As part of our mission to help you rock payroll, we have created a series of blogs, written by our Sage experts. These are designed to help you deal with the daily challenges of running a successful payroll department.
Benoit Gruber, VP, global product marketing at Sage shares with us how payroll can help you find and keep your star performers.
Modern HR and Payroll technology can help you manage colleague performance and development. With workforce analytics, you can now find your star performers and keep hold of them.
Depending on your industry, the cost of your workforce is likely to be between 30-50% of your total overheads. It’s probably one of the largest costs to your business.
The dream is to have a successful company full of high achievers and model colleagues. A world where everyone is motivated to push and move your business forward. You’re likely to have an idea who those individuals are already. They’re the ones who have an insatiable interest in your business, are reliable, great communicators, and work consistently hard. They’re willing to take calculated risks, but with good judgment at the same time. Entrepreneurial colleagues who can think differently are rare but important to have.
The automation of many payroll processes gives you room to ensure star performers are given the right rewards, conditions, and opportunities to stay. Until recently, the valuable insight payroll can provide to a business has been underused. But the availability of tools to mine and analyze data means that businesses are waking up to its potential.
A good payroll system should provide data that shows you where your money is going and how you can benefit from your most valuable assets, your people.
Through payroll data you can collect information about salary, absence, overtime, training costs and return on investment. Cross reference this data with qualitative information you have about colleagues–how they are viewed in terms of your performance culture by their peers, superiors and teams–to develop a complete understanding of who your high achievers are.
Trend analysis allows HR to understand the working conditions that allow new stand-out talent to bloom.
For example, if a certain department has a low turnover rate and constantly good appraisals, then using data to find out why will help you recreate the department’s environment across the entire business.
Technology can also provide tools that help you decide which colleagues could benefit from training–it provides valuable insight to inform decisions that a paper-based system could not do.
Turn your star performers into mentors who can help other colleagues who find the business more challenging and need inspiration.
Often the star performers expect support for self-directed training–HR is in an ideal position to help create innovative programs and bring in new training platforms.
Top-performing colleagues seek higher pay and greater opportunities. According to a US survey by Gallup, 32% of people cited a lack of promotional opportunities as a reason for changing jobs, ahead of 22% who claimed pay and benefits caused them to seek a new position. It’s important to identify the stand-out colleagues who are helping to drive the company forward, and do what you can to retain them.
Start by looking at payroll and performance data to make sure that your star performers are getting the remuneration they deserve for driving your business forward. This could mean better pay or bonuses, or simply positive feedback showing that you appreciate the extra hours they are putting in.
It’s also worth bearing in mind what your competitors offer in terms of salary, working hours, vacation time and benefits–you need to be at the very least matching and ideally exceeding them.
You should also have a way of identifying what your star performers value most. There is no point in investing in costly initiatives or training programs if your colleagues aren’t going to benefit from them. Give them the opportunity to shape their own careers and determine how they are rewarded.
Left alone, star performers will see opportunities with competitors. Your payroll data gives you the chance to build a complete view of the talent in your business–what creates, motivates, and retains the star performers, wherever they are in your organization. It’s important to take notice of what payroll data tells you, because once a star performer has handed in their notice, it's already too late.
VP, global product marketing at Sage
As part of our mission to help you rock payroll we have created a series of blogs, written by our Sage experts. These are designed to help you deal with the daily challenges of running a successful payroll department.
Benoit Gruber, VP, global product marketing at Sage shares with us why payroll is the untapped gold mine of business insight.
Payroll is one of the most commonly underused resources available to businesses when it comes to insight. It has the power to shine a light on your largest resource and overhead–your people.Payroll is one of the most commonly underused resources available to businesses when it comes to insight. It has the power to shine a light on your largest resource and overhead–your people.
In the past, the unfortunate perception of payroll was of a repetitive administration machine. But that's changing. Innovative updates to payroll technology have delivered payroll a seat at the reporting table, and businesses are better able to analyze their greatest asset and largest cost. In the past, the unfortunate perception of payroll was of a repetitive administration machine. But that's changing. Innovative updates to payroll technology have delivered payroll a seat at the reporting table, and businesses are better able to analyze their greatest asset and largest cost.
Payroll now has room to play a more strategic and valuable role. Compensation for employees is not simply a cost to contain, but an important consideration that will save money and drive efficiency in the long term.Payroll now has room to play a more strategic and valuable role. Compensation for employees is not simply a cost to contain, but an important consideration that will save money and drive efficiency in the long term.
However, payroll professionals must use and understand the large amounts of data available to them if their businesses are to keep up with the competition. Research by Sage and IDG has found that companies with more effective data grow 35% faster.
As highlighted by our research, reporting is key to business success. Not only can it contribute to growth, but also the productivity of employees. Businesses with more usable data increase productivity by 10%.
For payroll professionals, it allows you to understand and make best use of your company's biggest capital investment–the employees. After all, the wages a business commits to the workforce have a direct impact on the money it makes.
Reporting and analytics are of immense value. And they can help in the two biggest financial priorities–cost reduction and forecasting–allowing your company to grow and succeed in a business world where every advantage counts. When you combine payroll data with qualitative elements such as performance culture, skills, behavior, and experience, it can help you form a picture of the issues affecting business performance.
Payroll is a vital source of data in your business and has the potential to have an immediate financial benefit. It can provide a monthly snapshot of your company's health. Furthermore it is, by its nature, one of the most up-to-date sets of data in your business. Businesses are required by law to keep live payroll information, so there is no chance of you making decisions based on old news.
There are a number of payroll metrics that can give you a deeper understanding of how healthy your business is from a financial point of view.
Across each of these areas you’ll find a huge amount of data available to examine and, because it covers such a long period of time, it should be easy to start spotting trends. With the right technology it can give you a great platform for future planning, with the reassurance of knowing you have a constantly up-to-date view of your business. It should be the first place you look, before planning for the future.
VP, global product marketing at Sage