Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Smart Analytics that drive ROI

28 views

Published on

What do you focus on in analytics for HR and payroll? And how to drive real ROI with eg payroll leakage?

Published in: Recruiting & HR
  • Be the first to comment

  • Be the first to like this

Smart Analytics that drive ROI

  1. 1. Copyright NGA Human Resources. All rights reserved. 1 Smart Analytics that drive ROI Unleash 2018 - Amsterdam Anita Lettink
  2. 2. Copyright NGA Human Resources. All rights reserved. NGA Analytics based on rich data PICOF PECI VPS+EDI BOOMI – HCI HR open standard Oracle GPI Workday PRISM SuccessFactors Analytics Cloud Combined data set provides potential for true and complete insights, beyond reporting Service Data Benefits Data Time Data Payroll Data HR Data Country services certified for 188 countries Near real time updates
  3. 3. Copyright NGA Human Resources. All rights reserved. 3 Anomaly detection the identification of data points, items, observations or events that do not conform to the expected pattern of a given group Did you spot the outliers?
  4. 4. Copyright NGA Human Resources. All rights reserved. What is Payroll Leakage? Payroll leakage is unintended or unexpected spending or lost revenue related to labor activity. Leakage can result from • loose configuration of HR & payroll systems • poorly designed processes • gaps between policy and practice • and “gaming” the system. The key to fixing your payroll leakage is, finding those leaks before you have a flood on your hands. 4
  5. 5. Copyright NGA Human Resources. All rights reserved. Why is Leakage a problem? ISG estimates that poorly designed payroll processes that lack the proper technology and management routines can cost a company between 0.5% and 1.5% of total payroll dollars each year. Payroll leakage is a significant source of overspending as well as lost productivity. Employers often suffer from up to 2.5 percent of total payroll expense being lost to leakage according to Deloitte 5
  6. 6. Copyright NGA Human Resources. All rights reserved. A few examples • Excessive overtime or bonus pay • Discretionary and incentive pay • Inconsistent tax scale – tax amount not compatible with other employee pay amounts • Employees receving redundant allowances after job change • Benefits amount not typical for type and profile of worker • Pay scales not typical for type and profile of worker 6
  7. 7. Copyright NGA Human Resources. All rights reserved. 7 Do you spot the three workers that joined the company as students, have been hired as regular employees and are missing some of their allowances? Dimensions: - employee grouping - personal area - recurring payments - and ‘one time’ payments with their averaged median values
  8. 8. Copyright NGA Human Resources. All rights reserved. What if you could action data anomalies? 8 One of the newest techniques to detect anomalies is called Isolation Forests. The algorithm is based on the fact that anomalies are data points that are few and different. As a result of these properties, anomalies are susceptible to a mechanism called isolation.  This functionality is available from NGA and can be embedded in the pre-payroll process  Some real life examples: 1. Tax regime not adapted when someone moved across organization into a new, home based role 2. Mismatch between dependents and children (new born registration was not updated to dependents) 3. Group of people from an acquisition missed out on a recurring payment they should have received
  9. 9. Copyright NGA Human Resources. All rights reserved.Copyright NGA Human Resources. All rights reserved. 9 Beware of little expenses. A small leak will sink a great ship. Benjamin Franklin
  10. 10. www.ngahr.com 10 Anita Lettink Anita.Lettink@ngahr.com @let_anita

×