Group Payroll Analysis Model

Description
008 – GROUP PAYROLL ANALYSIS MODEL
• CEOs, COOs and CFOs need to keep a close monitor on monthly payroll.
• This model produces a useful dashboard for CEOs to receive on a monthly basis to keep them reminded of the total group payroll.
• This gives them an insight on how their labour force weighs into the operating costs.
• Most conglomerates and multinationals today control their HR operations in regional centralized offices where a group payroll is generated monthly from one HR department. This allows them to save costs across multiple entities in the group.
• In a labour-intensive organization, knowing how the salaries and allowances are distributed on group companies, departments and amongst employee grade levels is important to see where can there be areas of optimization.
• Keeping track of the highest paid individuals of the group is also a way to remind top management of the allocation of responsibilities to various key personnel in the group.
• It is also important to track the allowances and their types on a monthly basis. This is because sometimes there tends to be a leak in such benefits as a way for employees to create additional income.
• By also tracking costs on departments and locations, management can take informed decisions on relocations to areas of cheaper labour costs or outsourcing functions if needed to replace entire departments.
• Keeping track of the labour cost and number of staff across companies/subsidiaries in the group also allows CEOs to assess the productivity of those entities and compare such labour costs to their revenue contribution to the group.
• The model structure involves setting up certain predefined lists to ensure all employee data pertains to such lists. This includes:
• Entities
• Departments
• Locations
• Banks
• Grades
• The group payroll sheet is then inserted in the columns of the MONTH PAYROLL SHEET. The basic information of each employee receiving a payroll in that month will feed into the analysis.
• A break-down of pay is then plugged into the basic salary, allowances, and deductions columns to reach the TOTAL NET PAY for the month.
• The ANALYSIS SHEET is then used to query, extract and transpose data for use in charts.
• The DASHBOARD is the sheet that summarizes the payroll status for the month which could be copied into a monthly presentation for top management.
• Payroll is analyzed by different parameters like entity, department, location etc.
• Sorting is done to highlight larger weights in payroll.
• A list of employees is also generated and sorted by their total net pay to extract highest paid employees.