Most decision makers don’t consider using payroll data as an information determiner, but that’s where they are making a big mistake. There are number of ways where this data can help you improve process and outcomes.
Time-tracking Helps Determine Workforce Adequacy
If your employees are increasingly doing overtime, then this will enable you to determine if they are over-burdened or are less productive! When regular overtime hours are shown, this means that you have a workforce shortage and that’s why the employees are over-occupied with their work. If the situation goes unnoticed, then this might result in more frustrated employees with increased attrition rate.
Moreover, reviewing past data will also help you judge the situation closely that whether the shortage is seasonal or you have an inefficient or slow hiring process. As a result, you can employ change measures for improving the situation.
Performance Data Coupled With Payroll Data
Compensation is not the only employee performance driver. But, pay and performance go hand in hand. If the employees are paid well, this will definitely get reflected in their performance. Also during the hike cycle, employee performance must be analyzed properly so that well-informed pay raise decisions are made. If you have a centralized data with all the necessary information, then you can better plan your pay raise strategies and bonuses.
In addition, you can also evaluate the impact of these appraisals and bonuses on Employee Performances.
Better Budget Planning
Usually HR budgets are decided taking into consideration the financial reports of the previous year and the results. But if you do not take into account the payroll data, especially if the appraisals occurred during that period, then you will probably end up making wrong estimations and goals. You can use the previous year’s payroll data to evaluate how much money was paid to employees as salary out of the total budget allotted for employee management. This will help you make more realistic budget plans.
Therefore, your payroll data has multi-fold benefits and it can help you take a complete overview about how your organization works. Having a well-integrated HR and Payroll Management System can make your task of using this information much easier. With all data at one place you can not only make wiser decisions but can save time commendably.