Understand needs through Payroll Metrics and Dashboards Empower Your Organization! September 11, 2014 Diane Hirt - Presenter

Copyright Kivala-HR Introduction Diane Hirt – VP Business Process & Strategy for KivalaHR Over 25 years of experience in payroll operations and HCM systems focusing mainly on Service Delivery models and how to enhance and optimize processes eliminating manual and redundant tendencies.

Copyright Kivala-HR Benchmarking Few payroll departments have the time, resources or authorization to pursue date for a benchmark exercise. Just 17% of payroll departments attempt to benchmark their performance and efficiency against other payroll offices. BNA 2013/2014

4 Copyright Kivala-HR Understand Your Needs Organization Processes Unsure Silo Integrated Aligned Scattered Status Quo Stuck in Day to Day

5 Copyright Kivala-HR Silo vs. Integrated Silo Workflow People ProcessTechnology Integrated Workflow People Process Technology

Copyright Kivala-HR Cost Containment & Efficiency Initiatives Most common ways to cost reductions and performance improvements: New or Revised Procedures Establish Performance Metrics Upgrade or Enhance Hardware or Software Automation of Manual or Redundant processes Automated Time and Attendance Staff Training Outsource What Makes Sense

Copyright Kivala-HR Address Challenges Common Pain Points Segmented or “Silo” approach for processes Duplication of data entry, manual interventions for transactions What is Working – What is Not Working Hold workshops with all departments and workflow process end to end Align and understand hand-off’s Open forum with open minds. Have a mediator if necessary to run a neutral workshop Identifying Gaps/Disconnects Through the process flows and open dialogue Have an agenda and next steps Create an action plan

Copyright Kivala-HR Payroll Metrics

Copyright Kivala-HR Create Payroll Metrics A payroll metric is the best way to monitor the payroll department. It has to be specific to your department and may not be the same for every payroll department. Effective metrics should: Support Decision Making Measure Performance Identify Trends Define Baselines Provide a basis for benchmarking Support Corporate Scorecard

Copyright Kivala-HR Payroll Metrics Ideas Average number of payroll payments per employee Payroll costs compared to administrative expenses Percentage of employees receiving a check vs. direct deposit Number of off cycle or manual checks per pay period Number or percentage of manual checks vs. regular payroll payments Paid time off hours and/or dollars vs. percentage of total paid hours Number of off cycle or manual checks due to payroll or time errors Number of off cycle or manual checks due to incorrect employee data Overtime hours as a percentage of total hours worked Number/percentage of tax abatements Percentage of penalties and interest paid on total gross wages Percentage of penalties and interest paid on total taxes Percentage of penalties and interest paid on late payment of garnishments

Copyright Kivala-HR Why are Payroll Metrics Important?  You can not manage what you don’t measure  If you can’t measure then you cannot improve  It cannot be defended if it isn’t measured

Copyright Kivala-HR Tips for the Right Metric  Make sure the metric is measurable  How often should it be measured and communicated  Who is the audience?  How do you calculate the thresholds  What is the current range of values which are considered normal  Best possible value of the metric  Units of measurement  Get buy-in at the right level  Apply value to the metric and the outcome for improvements  Make sure the right parties are held accountable for the outcome of each metric

Copyright Kivala-HR Payroll Dashboard

Copyright Kivala-HR Payroll Dashboards Dashboards should tell a visual story Have the ability to drill down for more detail and be dynamic A quick glance at data that is important to run the business Provides info on Key Performance Indicators Normally has a way to quickly identify a problem with a warning in the form of (red/green/yellow ) A visual representation to monitor business activity and to understand the “health” of the payroll

Copyright Kivala-HR Payroll Dashboard Sample Data

Copyright Kivala-HR Payroll Scorecard

Copyright Kivala-HR Sample Department Scorecard Electronic Payments _____% -Direct Deposit _____% -Debit Cards _____% Electronic Statements ______% Total number of payments _______ Total $$ of payments ________ Customer Feedback -Highly Satisfied ____% -Moderately Satisfied ____% -Somewhat Satisfied ____% Payroll Team ____ Years of Experience Attended ____ Hours of Training Manual Check Go Green -Payroll Error Rate ____% -Field Error Rate ____% -Uncontrolled (layoff/term) ____%

Copyright Kivala-HR “Visual” Sample Scorecard Customers are saying…”they are Highly Satisfied” Pay Cards Go Green 96% Electronic 68% 78% 15% 7% Payroll Team Mitigates Risk and Manages Compliance with.. 25 Years of Experience 120 Hours of Training 6,876 Payments $985,000 Manual Check 2% Payroll Error 89% Field Error 8% Uncontrolled

Copyright Kivala-HR Questions?

Copyright Kivala-HR Appendix

Kivala-HR facts and figures Copyright Kivala-HR  International Consulting company  Offices in USA and Europe  115 consultants dedicated to HCM  Revenue approximately 20 Million USD  Over 75 successful projects delivered  Official SAP and SuccessFactors partner  Partnering in several co-innovation topics (Fiori, SF, ECM, Talent on demand)  Delivered award-winning project for Roche (CHRIS)  Accredited by the Pharmaceutical Supply Chain Initiative (PSCI) for sustainability  Average of 12.5 years SAP experience across the group Spain Germany Switzerland Europe North America U.K.

HR system & service strategy Business process design & optimization Learning & Development strategy Business case development SAP HCM Implementation SuccessFactors Implementation Portals, Employee & Manager Self-Service Business Intelligence, KPI, Dashboards Mobile Solutions Custom application development in SAP Data migration, Data archiving HR data security, authorizations, compliance System Integration Program & project management Project milestone reviews SAP HCM security, audits & compliance Test management strategy & execution Data management & archiving strategy Training Management Service Delivery Design and Setup Process Optimization Operational support and Outsourcing Continuous improvement services Service Center Training Application maintenance Project & end-user training Release upgrade services Data management Managing & Coaching HR Service Delivery Management Maintenance & Support Implementation & Technology Business Consulting End to End Service Portfolio 22 Copyright Kivala-HR 2014

Copyright Kivala-HR Our clients can benefit from a complete service offering around SAP and SuccessFactors HCM HR system & service strategy Business process design & optimization Outsourcing advisory Business case development On-demand integration U.S. Payroll Business Consulting Core SAP HCM Talent management solutions SuccessFactors HR data security, authorizations, integrity & compliance Portals, Employee & Manager Self-Service Mobile Solutions & Dashboards Enhancements & Custom application development in SAP Legacy data migration Integration Hybrid Solutions Implementation & Technology Application maintenance Project & end-user training Release upgrade services Maintenance & Support Servicing & system strategy alignment Servicing (re-)design & process definition & automation Transition Operations support Continuous improvement services HR Service Delivery Mgmt. Program & project management Project milestone reviews SAP HCM security, audits & compliance Test management strategy & execution Data management & archiving strategy U.S. Payroll Training Managing & Coaching Our Service Offering