Payroll KPIs in key performance indicators of financial management
1. Cycle time to process payroll
2. Cycle time to resolve payroll errors
3. % of payroll disbursements that include retroactive pay adjustments
4. Average overall cost of producing a payslip per pay run.
5. % of untimely payroll payments: Number of payments that are not made or made to late to employees as % of total payments to employees.
6. Timeliness in submission of statutory returns: Instances wherein statutory returns are submitted within the prescribed time
7. Payment errors as % of total payroll disbursement
8. % of manual payroll payments
9. Instances of filing of accurate statutory returns: No of instances where statutory returns filed with the authorities are accurate
10. Systems cost of payroll process as % of total payroll cost
List of KPI mistakes
Building KPI system plays an important role in evaluating job performance of individual parts, divisions and the company’s objectives and performance management system in general. The development of KPI metrics help to create measurement systems, information systems throughout the organization.
When building KPI system, you should note the following factors:
• Do not create too many KPI, KPI be built around 3-5 KRAs.
• KPI should change to suit each stage (depending on your goals).
• Limit 3-7 KPIs per process/function.
If you need more information for KPI, please leave your comments at the end of this topic.