Greg mcmanus 5 secrets (mistakes)

Payroll Metrics

The Five Secrets of Achieving Pay Office Perfection

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DID YOU KNOW?

A popular viewpoint from the 1990s is still held today: that Australian human resources information systems (HRIS) should contain payroll functionality.

A new generation of sophisticated cloud delivered HRIS applications minus payroll are available in Australia now.

These can be effectively integrated with cloud-based Australian payroll software providing a rich, cost effective payroll/HRIS application solution.

CONTENTS The Five Secrets of Payroll Perfection

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Superior Payroll Software

Tight Control Mechanisms

Continuous Measurement

Superior Customer Service

Embrace Change

1300 233 246 info@payrollmetrics.com.au www.payrollmetrics.com.au

Payroll Metrics

INTRODUCTION At Payroll Metrics, we know that running a payroll office can be hard work. Payroll is one of the most important roles in any organisation because it directly impacts employees overall perception of the company. Being paid on time, every time, is not an option but a requirement and an expectation of every employee.

Working with some of Australia’s best pay offices we have concluded that these top performing payroll offices are not created by chance or luck. In fact, they are fine-tuned well-oiled machines that all pay offices should and can aspire to be.

In this booklet, we disclose the five secrets of achieving pay office perfection. We hope that the information contained in this booklet will help you to take your pay office to a higher performing level, ultimately gaining positive recognition from employees and senior management.

Enjoy, Greg McManus Founder, Payroll Metrics

SECRET NO. 1 SUPERIOR PAYROLL SOFTWARE Superior payroll software saves time, minimises mistakes, provides an abundance of useful metrics, reduces processing costs, is dynamic and grows alongside your business.

Yet time and time again we come across organisations bound to their old (legacy) software without realising the negative implications. Here is the downside of continuing to use your old payroll software:

However, changing your payroll software is not a decision to be taken lightly. It has considerable impact on the whole organisation.

It is important that you talk to a payroll expert and shop around to make sure you choose the right software for your organisation and the right company to help you make the change.

The software becomes increasingly harder to integrate with other company software, whereas with today’s web-based platforms, software works together seamlessly The software depends on substantial technical support. Today’s software provides users with a greater functional repertoire giving them control over many functions that previously required technical support Old payroll applications are more difficult to learn and they lack the sophistication of today’s intuitive user interfaces Legacy systems could be costing you more money than you think; in time consumed, redundant features, technical support, downtime and so on

Ask Payroll Metrics about our fixed price Four Step Payroll Transition Plan, where we come and assess your needs and requirements giving you a comprehensive plan for transitioning to Payroll Metrics.

SECRET NO. 2 TIGHT CONTROL MECHANISMS Every pay office requires a set of internal control procedures designed to protect the company’s financial assets by avoiding risks associated with payroll. The risks include financial loss through unauthorised payments including fraudulent means. Controls to combat loss include: Utilise a separate bank account for the payroll and reconcile the account against the payroll’s bank deposit listing report.

Test the employee file to ensure duplicate addresses and bank accounts are valid Test the employee file for duplicate tax file numbers Review all employees without tax file numbers to determine they are authorised

by HR Ensure supervisors authorise all hours worked, with emphasis on overtime Ensure that the movement of leave accruals from one process to the next are not overstated Ensure that all termination payments are verified and countersigned Ensure that an independent senior member of staff checks and signs off on each payroll process. Specifically, they should sign-off on reimbursement of expenses and one-off payments Top performing pay offices prioritise tight controls. They vigilantly check and double check all authorisations and automate this where possible.

At Payroll Metrics, we understand how crucial it is to maintain rigorous cross checking systems when it comes to payroll.

If you know or feel your control mechanisms could be improved then speak to a consultant at Payroll Metrics today and we will help you to quickly identify obstacles and propose ideas how to overcome these.

SECRET NO. 3 CONTINUOUS MEASUREMENT One of the best-kept secrets of top pay offices across Australia is how much time they spend measuring their performance. These companies use these statistics to continually fine-tune their operations so they become known for their superior levels of performance.

Payroll offices that do not invest time and resources into continuous measurement run the risk of: Repeating the same mistakes time and time again Practicing dated payroll operations that exacerbate relations with their in-house customers Lack insight into their strengths and weaknesses as a department Becoming stagnant and resistant to change Every payroll office should develop a set of metrics applicable to their workplace and the payrolls they manage. With this data the pay office can measure performance against national performance levels now available from the Australian Payroll Association.

These metrics allow the pay office to set key performance indicators and targets that the office aspires to achieve on a daily, weekly and monthly basis.

At Payroll Metrics, we will assist you to define your key metrics and we will provide the most effective ways of capturing data and monitoring your results.

SECRET NO. 4 SUPERIOR CUSTOMER SERVICE TO ALL Payroll offices that excel are those that are considered an essential part of the larger organisation. They are respected for what they do and are recognised for their achievements.

On the other hand, payroll offices that typically have a poor reputation generally receive high levels of complaints and their morale suffers resulting in high staff turnover.

In order to change stakeholders’ opinions, under-performing payroll offices need to become proactive in providing great customer service day-in, day-out. Top performing pay offices achieve high levels of service management by rigorously carrying out the following: Provide information to users and customers about the availability of services and the procedure for obtaining them Maintain customer satisfaction through efficient and professional control and management of service requests Provide a channel for customers to request and receive standard services for which pre-defined authorisation and qualification processes exist Monitor service delivery demand levels and plan for the supply of capacity to meet demand.

Assist with general information, complaints or comments It takes time for the wider organisation to start valuing the payroll office. Once these new procedures are embedded into the daily operations, organisations will start to see a dramatic change to their reputation.

Not sure where to start? At Payroll Metrics, our 5- Step Customer Service plan can help you to get started. Here is a sneak peak at what you can expect: Step 1 – Create and publish a payroll services catalogue – the catalogue specifies the services provided by the payroll office, defines the method for requesting services and sets service fulfilment targets.

Step 2 – Negotiate a service level agreement (SLA) with customers – the SLA defines the respective obligations of the service provider and the customer. In agreeing their respective obligations, the parties can negotiate terms for specific deliverables.

Step 3 – Conduct and publish regular customer satisfaction surveys – the survey provides feedback from employees, peers and the executive and is used to measure performance and identify trends. The survey requests feedback about problems experienced.

Step 4 – Implement a performance review program – each review meeting is based on metrics and on actions taken during the review period. It reviews the payroll office’s and the customer’s performance.

Step 5 – Implement a continuous improvement program – review overall performance against metrics, consider the gap between current performance and best practice and identify steps for improvement. Consider technology trends and look for opportunities to implement process automation.

SECRET NO. 5 Embrace Change One of the most surprising features of the world’s top performing pay offices is that they embrace change. They view themselves as cutting edge, always innovating and improving upon what they do.

The moment new technology or new regulations come out; they jump on the wave with a strong determination to be leading the pack and demonstrating best practice in all areas.

All too often we see pay offices inhibited by their reluctance to change.

The most common fear found within payroll offices was the fear of changing from their current software. In these situations, the organisations preferred to continue to work with inefficient, old software even to the detriment of their status within the organisation or their performance levels.

lack of clarity about the benefits of change

Payroll Metrics have found that reluctance to change is driven by previous negative experiences or a lack of clarity about the benefits of change. However with more than 20 years’ experience we understand your situation.

We offer a service, which reviews your current payroll processes, highlighting cost savings, potential improvements in customer service levels and providing assistance and training when transitioning to our payroll software.

WORKING WITH US About US Greg McManus pioneered payroll software delivery via the internet in Australia with National Payroll Systems (NPS), having processed payroll for thousands of companies for more than two decades. During that time Margaret Ng, the Development Manager at National Payroll Systems and Greg have been at the forefront of web-based payroll software development, serving Australian companies of all sizes and from all industries with the software as a service model (SaaS).

Now at Payroll Metrics, Margaret and Greg have collaborated to develop a new generation of payroll software designed to leverage today’s technology. Their passion is improving payroll office performance and workplace satisfaction for payroll practitioners through the application of technology and they believe their solutions uniquely help employers and their payroll office staff to achieve the outcomes that define top performing payroll operations.

Payroll Metrics is a new cloud-based payroll application designed to enhance the performance and productivity of your pay office. It is a must-have tool for all organisations that manage payrolls from 1 to 100,000+.

Payroll Metrics

Contact Us 1300 233 246 info@payrollmetrics.com.au www.payrollmetrics.com.au