KPIs? Even if a small business owner doesn’t know the term or acronym, they are conducting their business according to Key Performance Indicators (KPI) every day. That’s how they know something in their business is working – or not!
And, there is little difference in the relevance of KPI between an organization that has just hired their fifth employee and those that have thousands worldwide. For payroll, the metrics that measure a successful operation don’t vary significantly. In fact, Jeanette Hibbert, UK Payroll Manager at the Kerry Group says in a recent article about global payroll challenges, “Payroll KPI’s are measurable regardless of location and the aim is always to pay accurately and on-time.” Sounds like the same thing a small business owner would be thinking as he processes his payroll at 8 p.m. the night before checks are handed to employees. Employers are employers.
- Quality (Accuracy)
- Customer Satisfaction
Every one of these KPIs is important regardless of the size of your organization. And since payroll processing includes reporting and payment of payroll taxes throughout the year, not meeting payroll KPI could be costly – in fines and penalties from governmental agencies. No organization, especially small business, can afford additional costs if they want to grow. Every dollar is important.
- They keep up with payroll tax law changes and guide you through those changes – you don’t have to keep track of what laws are being modified or enacted.
- They are experts at processing payroll and take care of all the little details. If an error in hours or pay is made, they keep track of the details needed for corrections – from the next check to the tax withholding and reports.
Some will ask if outsourcing payroll is cost-effective, because, after all, they could do it themselves. The answer in this case is a resounding yes, especially when you consider the hundreds of details that are connected with every payroll run. In fact, the cost may be a lot less than you expect.
So, think about the KPI you consider when reviewing your payroll processing. If you want a checkmark next to each one, contact The Payroll Department. Then spend your time working on meeting your KPI in all the other areas of your small business.
-Elaine of The Payroll Department Blog Team