One strategy used by payroll departments is to lower costs and boost productivity is documenting various department processes, finding components which are nonproductive and then altering or eradicating them entirely. Below are some reasons this method is effective, and ways in which it should be done.
Purpose Of Documenting Processes Within A Department
When department processes are correctly documented, payroll staff will be able to boost their ability to reduce the amount of components within a payroll process, or reduce the duration itself. To understand this, it is first important to understand workflow. If workflow moves through various systems continuously, and doesn’t have many interruptions which are unnecessary, this will lower the cycle time of the process.
SMART is an acronym which stands for specified, measured, achieved, relevant and timely, and is used for the tool that is responsible for analyzing each components utility within payroll processes. When it is discovered that a component isn’t smart, this is an indication that it isn’t attainable, relevant, timely or measurable, and that it should be removed or altered to become SMART which will boost efficiency.Evaluating process component costs and whether alternatives which are affordable are available will help the payroll departments better generate value.
Every successful small business has goals which are clear and articulated. SMART involves actionable planning that can be used to achieve the desired results. Payroll processes should always be defined well, while also being focused. Being able to measure these goals is also essential, as it allows the payroll department to use concrete numbers in order to determine if they are on the right path. Yet at the same time, goals must be within the realm of the attainable.
If the payroll department has goals which are well defined, capable of being measured but completely unrealistic, this will neutralize its effectiveness.Relevancy is a key component of this. It is based on the idea that a realistic goal is one based on the existing conditions and business realities. While certain goals may be desirable to achieve, this is only possible if they are relevant to market reality.
Typical Examples of Waste
One good example of waste in regards to resources which can be identified through the documentation of payroll processes is anything involving deployment which is not sufficient or the inability to effectively engage with payroll staff in the completion of certain tasks. Managers must make certain that each process is refined so that situations can be avoided in which persons lacking sufficient skill are given tasks to complete which is beyond their ability. Altering processes so that only those with the requisite skills can complete them will substantially boost efficiency.
Discovering tasks which are repetitive, such as data entry and its duplication, are important, as is refining certain processes so redundancy can be lowered which will reduce the duration of many processes while giving opportunities for reallocating time towards other tasks which are more pertinent.