How to leverage the strategic value of payroll data
For most business leaders, payroll is all about ensuring employees are paid accurately and on time, every time. Which is critical when it comes to keeping them engaged and productive, but there is another, equally important facet to payroll which is often overlooked by companies.
Payroll data contains a wealth of information about the people who make up the company’s workforce. If this information is utilised strategically – to identify trends and gain actionable insights into the business – it can transform management’s decision-making to the benefit of the organisation.
Before this can be achieved, however, the payroll must be set up to deliver high-quality information in a consistent manner. This can be challenging if the payroll technology used by the company is outdated, or comprises several disparate systems that function in silos.
The best way to capitalise on payroll data is through a single, automated system that gathers information in real time and integrates seamlessly with other essential business systems in the organisation, such as human resources. Once this is accomplished, payroll becomes an invaluable source of information that can be used in various ways to improve the business.
Talent recruitment and retention
Payroll data provides insights into employee preferences when it comes to compensation. How an employee is compensated affects their performance at work. For example, some might prefer flexible working hours rather than medical benefits. This information can be used to formulate employment contracts that attract – and retain – the best talent.
Payroll analytics helps management make informed decisions about the company’s future by enabling them to accurately assess the cost and impact of their plans before they are executed. Considering expanding to a new location? Payroll data can be used to paint a comprehensive picture of the workforce costs of such a move, thus ensuring that budgets and cash flow are managed efficiently.
An analysis of payroll data can also reveal compensation disparities in the organisation, including whether these are across race, gender or other personal attributes. The business can then set achievable targets to eradicate these pay gaps while monitoring progress along the way.
The importance of payroll data in business strategy cannot be overstated. Leveraged correctly, it can mean the difference between the success and failure of the business.
CRS Technologies understands the indispensable role payroll data plays in the organisation and can help you leverage this critical resource to its full potential. Contact us today and let us show you how.