Almost every industry you can think of has been heavily influenced by the growth of data in recent years, and payroll data is certainly no exception to that. But what is key is to analyze that data in the right ways, in order to maximize the value and insight from that data. 

In this blog, we’ll look at the practical role that payroll data can play in improving payroll operations when properly analyzed. We’ll also measure the scale of the difference we at CloudPay can make in helping organizations like yours make better business decisions based on data-driven insight.

What is payroll data?

Payroll data refers to any information that can be collected, stored and processed in relation to payroll operations. This can include (and is by no means limited to) salary levels, tax and social security arrangements, benefit entitlements, annual leave and overtime entitlements, payroll-related stipulations in employment contracts, and demographic information.

Considered individually, each of these types of data sets can help inform better payroll operations and strategies. However, when they are considered and analyzed collectively, they can uncover new levels of detail and insight that would otherwise be beyond the reach of a payroll team, and the organization as a whole.

How much difference can payroll data analysis make?

At CloudPay, we’ve gained extensive experience in working with companies that take different approaches to payroll, and by extension, their payroll data.

A good example of this can be found in how different CloudPay partners utilize our ‘Data on Demand’ feature. This is the interface within the CloudPay platform that allows customers to import data from various external sources, bringing it together in one place for full visibility. This data can include hiring, termination, employee detail changes, payments, deductions and more, and enables more coordinated analytics and decision-making in the process.

Within it, data can be provisioned 90% faster compared to manual data collection from disparate systems. As a result, combined with the power of CloudPay’s analytics tools, decision-enabling data that can take a week to gather, and monthly global payroll performance evaluations that can take several hours to compile, can each be delivered in less than one minute.

Current payroll reporting metrics show that around 40% are using this feature and around 60% aren’t, which gives us good sample sizes to compare the results of those that do and those that don’t.

Comparison of two of our clients – one of whom uses Data on Demand and other new functionalities, and one of whom does not – shows a clear difference in platform activity. The client that does not embrace functionality racks up around 11 days’ worth of activity within CloudPay per payroll cycle. For the client that does make use of the innovations available, that figure is around one day. 

Such a difference underlines not only the ability to gain greater payroll insights for more informed decision-making, but also how these innovations can streamline payroll team productivity to add value elsewhere.

How is CloudPay driving change in this area?

It can be difficult to encourage organizations to make the most of the functions available to them within their payroll system. Often, this can be put down to a fear of change, or through an ‘if it ain’t broke, don’t fix it’ view where payroll teams are unwilling to move away from processes that they feel are working fine.

It’s for this reason that we have proactively worked with many of our customers not using Data on Demand and other innovative features within CloudPay, and found practical integration strategies to meet their specific needs.

As an example of the scale of change this has driven, one of our clients in the petrochemical industry has reduced its time-in-app per payroll cycle from more than 7.5 days to less than five days: a time saving of more than a third.

As a whole, our engagement effort has resulted in a considerable increase in uptake of the Data on Demand tool, from around 40% previously to around 55-60% now. This means that at least one quarter of the firms who were not using the tool saw the value in it and decided to adopt it.

In summary: a strategy for success

At CloudPay, we have always believed that successful modern payroll needs more than just a great solution and innovative tech: it needs a robust business strategy and the expertise and advice of a proactive provider to guide organizations on their journey.

It’s for that reason that we work tirelessly to help our existing customers get more from their data, contacting clients with actionable ways in which they can make improvements. While every business should always be checking their payroll data whatever payroll software they use, we take pride in helping our clients explore new opportunities to maximize insights, improve payroll performance and increase overall employee satisfaction.

We aim for standardized processes with our Data on Demand service. This allows us to provide a global impact. While your business landscape may change constantly, payroll traditionally remains the same. We provide the tools and insights to make payroll adaptable to any changes your business may go through.