HR metrics are generally overlooked by most organizations but underrating them might not be the best idea – particularly if you’re an entrepreneur who desires to keep his business well-managed and optimized.
Their efficiency in assessing the employees, the policies and the tasks is undeniable. Therefore, as an important part of the area of management, HR has to be taken into account by any organization. And the best way in which you can manage this aspect is by applying some HR metrics that will come in handy for you and your team.
Having a clear idea about how your company is doing is definitely something every business owner desires – and by applying these metrics, you make sure your company is doing the right thing. Two aspects that you should definitely start using now are cycle time and resolving payroll errors.
Why Should I use cycle time to resolve payroll errors?
Cycle time refers to the period required to complete one cycle of a function, job or task. This means that cycle time is directly connected to the payroll process – which is in most cases calculated by the administrator of your firm and decided on the payment.
This means that cycle time is used in differentiating total duration of a process from its runtime. Everything done between the start of a task and the final destination will affect your employees’ payment the next month.
Having an objective view on the quantity and quality of work each employee does is something every entrepreneur should look up to. What is more, cycle time is directly connected to processing the payroll – and every business must have a payroll process in place in order for its employees to receive correct pay on time.
The methods in which the process functions depend from one firm to another. However, the conclusions are definitely similar. From one company to another, there are many variables which contribute to the process of paying the employees. Still, the basic payroll cycle covers tasks which most businesses are familiar with when processing their payrolls.
The other process, which is payroll, is definitely a complex one. It includes some stages which every HR expert should keep in mind:
- Collecting time worked, using the cycle time explained above;
- Calculating earnings and deductions;
- Paying the employee with your chosen payment method, according to the data found out by applying the cycle time metric.
Sometimes, along the way, payroll errors might appear – and these can also be solved using the cycle time metric. Checking the proof that a specific employee deserves a higher payment than he/she has received can be done – and the errors can be even more easily solved.
While payroll is a large expense for a company, you must know that payroll errors can cost your company even more. From labor hours spent correcting errors to retroactive taxes for misclassified employees, payroll errors can be a real headache. Make sure you always go back to the proof – and use the cycle time in order to be assured that your employees are treated right.