Metrics and Dashboards

1. Metrics and Dashboards Presented by: Brent R Gow, CPP Director Global Payroll, Starbucks Coffee Co

2. Agenda • Why Payroll Metrics are Important • Types of Payroll Metrics • Review Purpose of the Dashboard • Developing an Organizational Scorecard • Using Metrics Tell a Story • Integrating Payroll Metrics Throughout the Organization

3. Effective Metrics • Support decision making • Measure performance • Identify trends • Define baselines • Provide a basis for benchmarking • Support Corporate Scorecard

4. Using Metrics to Build Relationships Use metrics to support and build upon relationships, but not to replace them Strong value in maintaining an ongoing dialogue between your customer groups and at various levels Strategic (Executive) Tactical (Manager) Operational (Employee) Listen carefully to your customers! Understand their needs and their challenges Create a win-win together 4

5. Data Based Decision “You can not manage what you don’t measure” “If you can not measure it you can not improve it” “You can not defend it if you have not measured it” 5

6. Payroll Metrics Costs/Volumes Payroll costs/administrative expenses (%) Payees processed per FTE in Payroll Average number of payroll payments per employee Percentage of employees on direct deposit Percentage of employees receiving checks Percentage of employees with both check and direct deposit 6

7. Payroll Metrics Costs/Volumes OT hours as a percentage of total hours worked Paid time off hours/$ as percentage of total paid hours/$ Number of Special Checks (i.e., Off-cycle Payments) Number/Percentage of manual checks vs. system generated checks 7

8. Payroll Tax Metrics Number of entities & tax jurisdictions for enterprise Number of provincial jurisdictions per entity Employer taxes as a percentage of total wages Percentage of penalties/interest paid on total taxes Percentage of penalties/interest paid on total gross wages Number/percentage of tax abatements Number/percentage of timely payments/reports Number/percentage of late payments 8

9. Training Metrics Percentage of employees who participate in training Average number of employee hours spent training Amount of Training Dollars per employee Employees with expired certifications and licenses 9

10. HR Metrics Performance Appraisal Participation Rate Compensation Competiveness Compared to External Market Benchmarks (gap to market) Average Performance Appraisal Rating Termination Rate • Total Number of Hired • Gender Staffing Breakdown • Internal Hires / External Hires • Performance Rating Distribution • Employee Engagement Level • Average Time to Fill 10

11. HR Metrics Health Plan Enrollment Rates Average Workforce Tenure Transfers Internal Hire Rate Retention Rate Employee Satisfaction with Training Benefits Expense per FTE External Hire Rate • Leadership Gender Breakdown • Age Staffing Breakdown • Average Workforce Age • Average Employee Compensation • Type of Hires • Ethnic Background Staffing Breakdown • Average Merit Increase for Each Performance Rating 11

12. Training Metrics Quality Percentage of errors by type Payroll department error Manager / supervisor error – timely, accurate Employee error – time reporting not submitted Number of amended T-4 statements Number of Amended Tax Returns 12

13. Payroll Process Labor Distribution 13

14. We have all used dashboards… 14

15. Proactive Management Tool Visual representation Monitoring Business Activity to understand the “health” of a business Provides info of Key Indicators Information can be in the form of: Warnings Action Notices Next Steps Summaries of Business Conditions Dynamic (Drill Down Capability) Dashboard 15

16. Dashboard Example 16

17. Provides collection of reflective measures Performance of key business processes Financial perspectives Customer perspectives Learning and development perspective (i.e., Training) Scorecard 17

18. Sample Scorecard 18

19. Department Scorecard Go Green Under Budget Electronic Payments _____% -Direct Deposit _____% -Debit Cards _____% ___% of Total Budget Electronic Statements ______% Total number of payments _______ Total $$ of payments ________ Payroll Team ____ Years of Experience Attended ____ Hours of Training Customer Feedback -Highly Satisfied ____% -Moderately Satisfied ____% -Somewhat Satisfied ____% 19

20. Department Scorecard (with Graphics) Go Green 86% Electronic 68% Fiscally Responsible 5,867 Payments 98% of Total Budget $500,000 Pay Cards Payroll Team Mitigates Risk and Manages Compliance with.. 7% 15% 120 Hours of Training 44 Years of Experience 78% • Customers are saying…”they are Highly Satisfied” 20

21. Training Scorecard Quarterly Review Held: • Individual Goal: • To become a Certified Payroll Professional (CPP) and then move into a management position. • Background: • 5 years of payroll administration • 5 years of customer service Manager Feedback • Recommended Cindy become Certified to continue progress on her career path to a management position. • After CPP is obtained, additional knowledge and experience is needed in Management that will be offered internally. Accomplishments Next Steps • Knowledge Assessment Completed • Attended APA Web Based Training Course • Complete Inventory of Management Skills • Complete Development Plan • Attend Chapter Study Group 21

22. Benchmarking 22

23. Tips for Metrics • Key is to use the “right” metrics • Name of the Metric • Description of what is measured • How is the metric measured • How often is the measure taken • How are the thresholds calculated • Current range of values considered normal for metric • Best possible value of the metric • Units of measurement 23

24. Data Sources • HR/PR Database • Financial Database • Call Center Database • Project Management Database • Time and Attendance System • Excel Spreadsheets • Paper “Stickies” • Other 24

25. Value Proposition: “Payroll Department Data Correlates to Bottom Line Success” Metric: Timeliness of Termination Notification Days Late for Notification Manager Company Property Organization Ongoing Expense Terminations $$ Late Terminations Increased Cost of Expenses (Phones/ PC’s) Decreased Profits 25

26. Data Collection Tool 26

27. Data Collection Tool 27

28. Scorecard Integration • Reflect company strategy • Foundation on company goals • Mission, purpose and objective must be defined • Agreed upon measures • Tied into individual goals 28

29. Building the Foundation • Begin with the end in mind • Define a clear goal • Gain buy in from users • Design reporting templates • Identify data sources • Determine Frequency • Estimate overall effort • Understand audience needs • Align with organizational goals • Integrate with recognition: performance or bonus 29

30. Thank you Please complete your evaluation