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The Importance of Measuring Payroll Error Rates

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Payroll mistakes can happen for a multitude of reasons and if you spend your days firefighting, rather than investigating you will probably see a compounding increase in the ongoing error rates.

By implementing an effective measurement system, you can identify the volume of errors and the resultant root causes of each one, in order to execute solid corrective measures to eliminate re-occurrences. The root causes are easily identified and often fall into one of the following categories:

  • Payroll staff require retraining or instruction in a particular area
  • Effective processes and checklists are not in place
  • Incorrect parameters (or a bug) in the payroll system
  • Fraudulent activities may be occurring

When implementing your error measurement system you need to record and analyse the following data:

  • The affected employees and the rate of incidence
  • Dates of occurrence, identification and resolution
  • Who was involved in the end to end process
  • Who identified the error and how
  • Why it was not identified in the payroll process

An effective error measurement system makes good business sense, shows your commitment to service excellence and continuous improvement and goes a long way to ensuring compliance and efficiency.

Remind yourself and your team that error reporting is not about counting and allocating mistakes, but is about implementing systems and checkpoints to minimise errors and to improve capabilities, service and effectiveness.

When it comes to boosting productivity and increasing ROI, moving away from manual and spreadsheet-based time and attendance tracking makes sense for organizations of all sizes.

Automated, cloud-based systems pay for themselves within a few months, and provide considerable savings on an ongoing basis by eliminating errors, compliance violations, time theft, and other time-related issues that lead to revenue leakage

To make the decision that’s right for you and your business, take advantage of the knowledge and expertise that we at i3Group are able to offer by giving us a call today on 1300 725 647.

25 Nov, 15

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