The payroll and HR processes focus on managing employee performance and compensation practices within an organization.
An effective incentive compensation process is built on a set of well-defined and clearly stated business objectives. Key objectives articulate the ideal performance results that the company expects from that process. When determining what process improvements are needed to reach the next level of maturity, evaluators should consider the importance of the process being addressed. As the importance of a process increases, its desired capability increases.
This tool features a number of leading practices for the payroll and HR processes, including:
Group employees into different pay cycles that will minimize the number of payments per month, balancing constraints set by legal requirements and employee needs.
Require electronic funds transfer (direct deposit) as the method of pay disbursement for all employees.
Evenly schedule workload throughout the month based upon payroll cycle frequency and efficient use of system resources.
Use an employee self-service vehicle to decentralize payroll data entry and to increase access to information.
Use a central system for payroll and HR-related information needs.