Dated Payroll Tech Hinders Key Performance Indicators
Tracking key performance indicators (KPI) can give credit managers an idea of how business is doing and provide guidelines for improvement. However, analyses are only as good as the tools used to complete them, and according to a new joint survey, using dated technology will hinder performance. Nearly 1,000 professionals across several industries participated in the survey.
On May 21, the American Payroll Association and payment software company Kronos released the Evolution of Payroll Technology Survey that found one-third of employers from small-, mid- and enterprise-sized organizations (SMEs) use decade-old payment technology. Instead, only 11% of respondents said they use "modern solutions" released within the last year.
"[Some companies' current technology] was deployed around the same time the world was being introduced to Apple's iPhone for the very first time in 2007," the study noted. "The findings suggest outdated, manual processes and legacy payroll solutions limit a payroll department's ability to track and report KPIs and hinder their ability to keep up with today's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."
Respondents from companies that track KPIs reported that up-to-date technology is equipped to measure crucial business elements, including the impact of manual/voided/stopped payments, payment errors as a percent of total payroll payments as well as total processing time per pay cycle. However, payroll professionals are looking toward the future and sharing what they expect from the "next solution."
The majority of respondents said they seek on-demand reporting and analytics (87%), followed by seamless integration with time and labor management to improve data quality (81%). The ability to track multiple worker classifications, such as seasonal and temporary employees, was also on 76% of respondents' wish list.
"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," Kronos' Payroll Practice Group Senior Director Malysa O'Connor said in a press release.
-Andrew Michaels, editorial associate