The goal for business leaders is to create a ‘frictionless enterprise’. This is an organization where information flows intelligently between departments and processes, as and when needed. The use of modern technology coupled with automation and machine learning can remove monotonous manual tasks from core HR processes including payroll, while simultaneously streamlining operations.
What stands in the way of unlocking value from payroll data and analytics?
Future business success or failure can be shown in the payroll data and analytics KPIs. It is the only data source that reveals all there is to know about the workforce. It reveals the who, the what, the when, and the why. This makes it quick and easy for HR stakeholders to answer these questions retrospectively, in real-time, and proactively.
Payroll data analytics reports facts on every aspect of the workforce, including the total cost as a whole, unit, team, or individual. This is vital for growth. If you’re only able to take snippets and analyzing short-term pay cycles, it’s not possible to pull true intelligence from your payroll data, even less so if you’re doing this manually.
Analytics have never been more vital to help HR professionals address some of the effects of the great resignation. Organizations need to measure the effectiveness of base salary, bonus, benefits, and retention payments.
Other data-driven insights can look at potential skill gaps based on:
- attrition risk analysis
- current length of service and
- employee satisfaction polls.
Predicted and actual demographic pay gaps should also be identified. All data points are under scrutiny, and failure to address them can damage your employer brand and affect recruiting efforts.
A substantial competitive advantage for data-driven payroll in 2022 is the means to model, predict and plan to unlock the vast amount of HR information.