Payroll and Operations Parity

Payroll and Operations Parity is Not Only Reachable – It’s Coming From the Payroll Side!

Payroll and Operations, Payroll and Operations Parity

Encounters between payroll and operations have been limited historically to something like “No you cannot have budget for anyone else.” But that, as they say, is a thing of the past.
As knowledge necessary to run a payroll department has increased – so has payrolls reliance upon operations – and IT in particular. Professionals running advanced accounting for commission schemes and scheduling calendars simply couldn’t stop learning as both industries grew and changed.

Salaries, commissions, withholding taxes, wages, stock options, pensions, bonuses, policies, garnishments and benefits all continue to change and the software necessary to manage them does too.

Global or even simple multinational payroll can make the whole thing seem that much more daunting. Data privacy laws and tax disclosures and all the related regulations should be enough to start to give those of us in other industries an idea of just how complex these accountants professional lives have become.

Payroll Data for Operations Intelligence

But as all of that data gets collected and used for one purpose, companies are finding that the same data can be enlightening in all kinds of other areas – namely in operations.

Accurate processing – so that everyone gets what’s coming to them – is just the beginning of what you should expect. 

The money paid for labor is – to put it lightly – combed over – meticulously.

But what that money bought is only slowly coming to light. And it’s coming from the very same payroll sources.

What used to be simple job descriptions, are today dynamic analytical reports that are able to process exactly what every post has done, what every job title is good at and ultimate what were the results.

Payroll data was always the hidden key to the truth about operations. But with today’s advanced analytics – and skilled analysis thereafter – what’s happening today is a revolution in operations intelligence. It’s a revolution that depends on both operations and payroll participation.

The Genius of Advanced Analytics

The real advantage – not always understood by payroll managers themselves – is that in most cases advanced analytics can be drawn out from payroll data without violating payroll secrecy policies or privacy guideline. Most of the intelligence that operations needs remains rightfully anonymous.

That still should leave a wealth of data about performance, output and results that good data people will put to the use of operations managers.

Who is doing what, for how long and when – and ultimately then,…

The question is not how much did that person cost, but how much did that person earn?

As we’ve shown above, Payroll data is already complicated. Working with such data requires an advanced degree, rigorous training and experience, and ongoing training, learning and improvement.

One of the most important pieces of closing advice is that you include payroll managers – with these kinds of advanced training and experience – early on – in all of your discussions and plans for operations improvement. The data they possess, or should possess, will be a invaluable asset for any organization to take advantage of.

Disagree? Please let us know all of your own experience with payroll and operations cooperation in the space below.

Karin Jakovljevic

About the author

Karin Jakovljevic

Karin Jakovljevic is the head of marketing at Ximble, a powerful, cloud-based workforce management system, simplifying employee scheduling and time tracking for retailers, restaurants and small businesses.

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