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You are the Payroll Manager for Alpha Systems Limited, managing a team of three Payroll Administrators. The following chart illustrates benchmarks that have been established as an operational scorecard for the payroll function as compared to your team's actual results from the last completed quarter.
1. For each indicator list the potential impact of any variance between the target and the actual result.
2. Choose one indicator to review further
1. List potential causes for the variance to target; both internal within payroll and external i.e. service provider, line of business, employees.
2. Discuss best practices that you could implement to improve your scorecard results going forward.
Indicator
Metric
Target
Result
Impact of Variance
Timeliness
% of payroll deposits distributed to employees on agreed pay date
100%
97.5%
Accuracy
% of pay slips delivered with no errors
99.5%
98.2%
Compliance
% of reporting and government remittances filed on time
98%
Cost
Cost to produce a pay slip including direct and indirect costs.
$30.00
$31.50
FTE ratio
The number of active full time equivalent employees administered by one payroll team member
1:500
1:650
Customer Satisfaction
Employee satisfaction survey results
9/10
7.5/10
Note: Copy and paste the above table into your response.
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