Number of payroll disbursements processed per FTE that performs the process "manage pay"

This measure calculates the number of payroll disbursements per full-time equivalent (FTE) employee that calculates employee payroll for each pay period, including bonus runs throughout the year, and transmits payment to employee accounts or directly to employees. A payroll disbursement is a transfer of funds from the payroll department to an employee, including all payment methods (e.g., paychecks, direct deposits, manual checks, etc.) and types. This measure is part of a set of Staff Productivity measures that help companies assess the efficiency of their staff related to the process "manage pay."

Benchmark Data

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Measure Category:
Staff Productivity
Measure ID:
101370
Total Sample Size:
1,500 All Companies
Performers:
25th Median 75th
- 15,000 -
Key Performance Indicator:
Yes
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Compute this Measure

Units for this measure are disbursements.

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Number of payroll disbursements / Number of FTEs who perform the process "manage pay"

Key Terms

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To calculate the number of full-time equivalents employed during the year for each respective process or activity, you must prorate the number of employees and the hours spent performing each process/activity. Assume that a full-time worker represents 40 hours per week. Provide the average number of full-time equivalents employed during the year for each respective process. Include full-time employees, part-time employees, and temporary workers hired during peak demand periods. Allocate only the portion of the employee's time that relates to or supports the activities identified for an applicable process. Prorate management and secretarial time by estimating the level of effort in support of each activity, by process.

For example, a part-time secretary in the finance department for XYZ, Inc. charges all of his time to finance department activities. He works 20 hours per week. The secretary splits his time evenly supporting employees working in the general accounting process and the financial reporting process. Thus, his time should be allocated by process. So, if he works throughout the year and supports these two processes, his time would be split evenly as:

20hrs/40hrs = .5FTE * 50% for general accounting = .25FTE for general accounting

20hrs/40hrs = .5FTE * 50% for financial reporting = .25FTE for financial reporting

Staff Productivity is a measure of the efficiency of individuals performing specific processes. Measures in staff productivity generally relate the transaction volume or outcome of the process with the effort in terms of full time equivalent employees to perform the process.

The metric value which represents the 50th percentile of a peer group. This could also be communicated as the metric value where half of the peer group sample shows lower performance than the expressed metric value or half of the peer group sample shows higher performance than the expressed metric value.

Measure Scope

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Cross Industry (8.0)

  • 9.5.2.1 - Enter employee time worked into payroll system (10858) - Tracking the number of hours worked for the payroll system. Register the number of hours worked by an employee into the payroll system for the purpose of calculating salaries or wages.
  • 9.5.2.2 - Maintain and administer employee earnings information (10859) - Tracking and oversee salary breakups of employees. This process requires the organization to manage and update information pertaining to the structure of every employee's salary. This would involve the updating any changes to the salary structures of the employees, in a central repository which can be accessed by pertinent departments.
  • 9.5.2.3 - Maintain and administer applicable deductions (10860) - Processing salary deductions for tax purposes. Keep and manage the details of every employee's salary deductions based on their expenses and investments during the year.
  • 9.5.2.4 - Monitor changes in tax status of employees (10861) - Tracking changes in the salary structure of employees for tax deductions.
  • 9.5.2.5 - Process and distribute payments (10862) - Processing and distributing salaries to all employees. Execute the payroll management function through the dispensation of employee salaries. Leverage a centralized database of all payroll expenses.
  • 9.5.2.6 - Process and distribute manual checks (10863) - Handling incorrect/omitted salary payments.
  • 9.5.2.7 - Process period-end adjustments (10864) - Adjusting salary deductions for tax purposes at the end of the year.
  • 9.5.2.8 - Respond to employee payroll inquiries (10865) - Addressing salary-related queries raised by employees.