[May 21, 2018] |
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Kronos Survey Finds Nearly Half of Organizations do not Track Payroll KPIs
According to a new survey from Kronos
Incorporated conducted with the American Payroll Association, nearly
half (49 percent) of all organizations surveyed admitted to not tracking
key performance indicators (KPIs) in their payroll department.
The "Evolution of Payroll Technology Trendline Survey" polled nearly
1,000 payroll professionals from small, mid, and enterprise-size
organizations across all industries. The findings suggest outdated,
manual processes and legacy payroll solutions limit a payroll
department's ability to track and report KPIs and hinder their ability
to keep up with today's speed of modern business.
News Facts
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Today's work, yesterday's tools: Many organizations rely on payroll
solutions implemented before the great recession
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For nearly a third (29 percent) of survey respondents, their
payroll solution is 10 or more years old - meaning it was deployed
around the same time the world was being introduced to Apple's (News - Alert)
iPhone for the very first time in 2007.
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Some respondents benefit from more modern solutions: just one out
of every 10 (11 percent) use a solution deployed within the last
year, while about a quarter (27 percent) use a solution that is
less than three years old.
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The pulse of performance: Legacy solutions likely hurt payroll's
ability to accurately track and measure business outcomes
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According to the survey, approximately half (49 percent) of
respondents admitted that their payroll team does not regularly
track and report on KPIs, a possible side effect of using such
outdated solutions.
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For those who do track KPIs (51 percent), the most common metrics
added over the last decade include measuring the impact of
manual/voided/stopped payments (31 percent), payment errors as a
percent of total payroll payments (23 percent), and total
processing time per pay cycle (18 percent) - all of which are
direct indicators of payroll performance and accuracy.
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Progressive payroll departments are also focusing on their impact
on the employee experience: about one-fifth (19 percent) now
measure the average time to service employee requests per day,
week, and month. This is significant because a slow response to
payroll requests has a direct, negative impact on engagement.
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What keeps payroll professionals up at night: Changing business
objectives will create significant challenges
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When evaluating their existing payroll solution, a quarter (25
percent) of survey respondents say merger and acquisition activity
requiring the blending of two organizations presents the biggest
difficulty to overcome.
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More common occurrences, such as annually evolving business goals
(20 percent) and organizational changes, including new leadership
or strategic direction (20 percent), are also viewed as obstacles
due to their existing payroll solution.
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Widely regarded as experts in regulatory change, just 13 percent
of payroll professionals are concerned with the impact their
current solution has on their ability to manage new legislative
rules and regulations.
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Payroll's wish list: Digital solutions that empower the entire
workforce, whether hourly or salary, a manager or employee
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To make their own role more effective, payroll professionals want
their next solution to have on-demand reporting and analytics (87
percent), seamless integration with time and labor management to
improve data quality (81 percent), and the comprehensive ability
to track multiple worker classifications (76 percent), such as
seasonal and temporary employees in addition to full- and
part-time.
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With an eye on the employee experience, an intuitive user
experience (80 percent) and employee self-service (77 percent)
scored highly as "must-have" features.
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Almost all survey respondents (90 percent) say a solution that
grants security-access levels based on position is critical. This
would empower others within the organization - such as finance,
operations, or executive leadership - to incorporate payroll data
into their own reports for a more complete look at performance
without exposing sensitive employee personnel information.
Supporting Quotes
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Malysa O'Connor, senior director, Payroll Practice Group, Kronos (News - Alert)
"Many
payroll professionals find themselves in a challenging predicament.
They're forced to rely on outdated solutions that provide limited
visibility into payroll's impact on overall organizational
performance. Because of this, they are unable to build a proper
business case to secure the investment needed to procure the modern,
digital solutions required to keep up with today's speed of business.
Organizations that proactively invest in new payroll tools that
deliver in-depth analytics and an engaging employee experience will
unlock yet another door for improved performance."
Supporting Resources
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Note to editors: Please refer to this research as "The Evolution of
Payroll Technology Survey" conducted by Kronos with the American
Payroll Association.
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See why G2 (News - Alert) Crowd named Workforce Ready a marketplace
leader in HR management suites.
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Read the What
Works blog to learn about the latest trends, insights, and best
practices for payroll and human resources professionals.
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Connect with Kronos via Facebook,
Twitter,
LinkedIn,
Instagram,
and YouTube.
About Kronos Incorporated Kronos is a leading provider of
workforce management and human capital management cloud solutions.
Kronos industry-centric workforce applications are purpose-built for
businesses, healthcare providers, educational institutions, and
government agencies of all sizes. Tens of thousands of organizations -
including half of the Fortune 1000® - and more than 40
million people in over 100 countries use Kronos every day. Visit www.kronos.com.
Kronos: Workforce Innovation That Works.
Survey Methodology Research conducted on behalf of Kronos
Incorporated by the American Payroll Association via a sponsored survey
opportunity with its membership. Survey data was collected from 959
respondents between Feb. 27 and March 15, 2018, using an online
quantitative methodology. Survey participants were sourced by the
American Payroll Association and all respondents who opted-in to
complete the survey, including sharing their demographic and contact
information, were entered to win a drawing for a $500 Amazon gift card
furnished by Kronos. For further questions about survey methodology,
contact [email protected].
© 2018 Kronos Incorporated. All rights reserved. Kronos and the Kronos
logo are registered trademarks and Workforce Innovation That Works is a
trademark of Kronos Incorporated or a related company. See a complete
list of Kronos
trademarks. All other trademarks, if any, are property of their
respective owners.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180521005586/en/
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