Do you have questions about your payroll’s evolution and need visibility? To anticipate difficulties, an HR department needs to have a clear view of the company’s workforce over time. To help you see more clearly, we advise you to rely on a particular HR dashboard: the payroll dashboard.
The payroll dashboard is a specialized dashboard specific to HR. This type of HR dashboard (or social dashboard) makes it possible to follow the evolution of the company’s payroll through a series of performance indicators. To do this, it illustrates in the form of graphs various vital indicators, or KPIs, related to the payroll. These KPIs are defined upstream by the HR department according to the needs of the company and the objective of the designated dashboard. Thus this dashboard or dashboard is an excellent tool that accompanies the HRD and the HR team in its payroll management over time.
To determine the indicators that will be used in your payroll dashboard, it is essential to define your objectives upstream clearly. Each dashboard is unique based on business needs. Nevertheless, some HR indicators come up frequently when creating this type of table. If you need inspiration, here are the leading HR KPIs used to create a successful payroll table.
Gross payroll corresponds to all salaries and bonuses paid during the accounting year. This gives the company’s expenditure in this area over a year. Payroll for one year = total gross remuneration + bonuses. It is then sufficient to report this value in months to obtain the gross monthly payroll for the chosen year. Gross payroll per month = (total gross remuneration + bonuses) / 12
The overall cost of personnel represents the super-gross spent by the company for all personnel. This HR indicator considers salaries, employer’s social security contributions, and employee social security contributions. Overall personnel cost = total net remuneration + total employer social security contributions + total employee social security contributions + total bonuses. This key indicator reflects the actual cost of the company’s staff per month and over the year.
The average cost of an employee represents the average amount spent by the company for one person. It is none other than the ratio of the overall cost of personnel to the number of employees in the company. The average cost of an employee = global cost of staff / total number of staff. This indicator gives an individual vision of the cost of employees, easier to understand than the overall cost detailed above.
Very important on a payroll dashboard, this KPI represents all the hours that fall outside the framework defined by the contracts. This KPI is the sum of additional overtime hours requested over the year and then reported over one month. Total additional and overtime hours = (Total additional hours N + Total overtime hours N) / 12.
A ratio between payroll N and N-1 obtains the payroll growth rate. Total payroll growth rate = (total payroll N / total payroll N-1) – 1. The aim is to determine how the payroll evolves about other indicators, such as the total workforce or the workforce by the department. This gap fluctuates depending on the year and the economic context; you must follow it closely.
The calculation is similar to the total payroll. It is, however, necessary to isolate the payroll of the designated status (employee, manager, worker, supervisor etc.). This KPI helps to determine whether the salaries of one category of employees are increasing faster than those of another category. A significant imbalance can generate social tensions within the company. The growth rate of the payroll of a status = (payroll of status N / payroll of status N-1) – 1
Again, the calculation is similar, but you must isolate the payroll according to its location. The growth rate of a department’s payroll = (payroll of a team in N / payroll of a team in N-1) – 1. The aim here is to analyze how the payroll evolves between the company’s different departments. Once again, the aim here is to ensure that the departments’ equity is respected to maintain a good social climate.
The total monthly headcount represents all your staff under employment contract during the defined month. For part-time contracts, a pro-rata attendance time must be implemented. Total monthly workforce = permanent workforce + fixed-term workforce + temporary workers/contributors. Generally represented in the form of a curve, this indicator reflects the company’s workforce each month.
We also advise you to include the following KPI on your payroll dashboard. The growth rate of the workforce by status is the ratio of the workforce by status for year N to year N-1. The growth rate of the workforce by status = (workforce by status N / workforce by status N-1) – 1. The aim here is to determine how each status workforce evolves and compare their respective evolutions over time.
This growth rate allows you to follow the evolution of your workforce by team/department/service. Workforce growth rate by department = (workforce by department N / workforce by department N-1) -1. Similar to the previous indicators, the objective here is to calculate precisely how the workforce in each department is changing. Thus, the HR department can check that a department is recruiting appropriately and anticipate a potential change of premises.
To start building an effective payroll dashboard, you will need to consider various points. Here are our best tips for creating a dashboard that will meet your HR management needs.
First, take stock with your entire HR department. This will allow you to determine what prevents them from tracking payroll effectively. It may be a lack of tools, difficulty accessing specific data… Then list the information they would need to remedy this problem.
Choosing the right indicators remains the fundamental basis of any payroll dashboard. Each company and each HR team has its own KPIs. For the table to remain synthetic, you must choose between 5 and 10 KPIs related to payroll. You will need to choose more to have an overview of the current situation.
You will need dedicated tools to build a dashboard that is both reliable and easy to understand. We recommend relying on Business Intelligence (BI) and reporting solutions to do this. Indeed, their tools for building and sharing dashboards are very intuitive. The reporting solution connects to your HRIS to collect the data available to the human resources department. It allows you to clean, analyze and illustrate them as graphs in reports or dashboards.
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