Big data has enabled businesses to utilize data analytics to extract valuable insights hidden within other company’s payroll data. While businesses keep track of their own payroll data and report it in monthly, quarterly or annual reports, there hasn’t been a way to get an advanced view into competitor’s payroll data until now.
Through payroll data analytics, businesses have a massive opportunity to gain foresight into their competitors operations more than ever before.
What Is Payroll Processing Data?
Payroll processing data is information that is generated from payroll processing companies conduct on weekly or bi-weekly bases. Payroll processing refers to benefits and payroll administration, and can be used as a key source for important information to fuel strategic insights. Looking at payroll processing data reveals the frequency of payments leaving a company every pay period, and can show when hiring trends are increasing or decreasing.
What Is Payroll Data Analysis?
While processing employee benefits and payroll has traditionally been paper-bound and human-led, today’s payroll services typically include tools that offer a deeper look into payroll data, providing reports on everything from employee absence rates to compensation change costs. Although these reports are important and helpful, they are not the same as analytics.
Payroll data analytics is the process of using payroll data and applying data analytics to it that allows businesses to understand economic trends and patterns so they can make better decisions.
Payroll data analysis extends the capability of traditional payroll services by offering a different view into payroll information. Usually payroll data is examined as it leaves a company, but with payroll data analysis, deposit transactions can be monitored in real time as they move into bank accounts.
The analysis reveals the frequency of payments, number of payees, and the amounts paid, but does not identify employees on an individual level. With a holistic view of payroll deposit data, from payment to deposit, businesses can discover trends and patterns in the market so they can use them to make better decisions.
Using Payroll Data to Identify Trends
From gaining competitive advantages to understanding seasonal changes in the workforce or in business spending, payroll data can help businesses and investors be better informed and make more strategic business decisions.
Inform Business Decisions
Using data analytics to extract information in payroll data can help businesses inform their future strategies such as expansion plans or adding additional products/services to their offerings. With a clear picture of operational costs, the viability of growth strategies can be better understood before any decisions are made.
The employment and finance information within payroll data can also help flag inefficiencies or errors in systems that may be costing the company money. Using payroll analytics to discover competitive intelligence also gives businesses unique insights around changes in employment so they can determine the most effective growth strategies versus their competitors.
Projections & Seasonal Forecasting
Businesses and investors can analyze payroll performance to generate more accurate retail projections and help with managing budgets and cash flow. The payroll data provides insight into staffing capacities to help better understand the potential cost of hiring new employees vs. paying existing ones overtime, tax or compliance implications, and investment opportunities.
Understanding the accurate costs and risks associated with employment across various locations is critical for staff forecasting.
Salary & Compensation Management
A big part of payroll administration is ensuring that employees are being paid fairly and competitively through salary benchmarking. AI and machine learning technologies can be used to automate this process using payroll deposit data so compliance with hiring laws are always met, and employees are always being compensated appropriately.
Payroll deposit data also lets businesses see how much competitors are paying their employees on a macro scale so they can better retain and recruit talent.
Evaluating Payroll Data Analytics Services
When looking for a payroll data analytics service provider, it’s key to understand where they source their data, its quality, ease of use, consistency in delivery, and security.
Envestnet | Yodlee is a market leader in data aggregation and data analytics solutions with access to over 17,000 global data sources. The data Envestnet | Yodlee provides is simple and ready to integrate with existing analysis systems, and is normalized and standardized so it's delivered in the same formats in the same fields every time.
Whether or not you have any data science systems or experience at your company, our data is made to easily integrate with your data so you can start extracting insights from it immediately.
Following our data promise, Envestnet | Yodlee’s data meets the most stringent of security standards, and de-identifies individual employees and consumers to protect their privacy. This is essential for any business or investment manager looking to start leveraging the power of big data and payroll data analytics so you’re following the best data protection practices that enable you to modernize your operations while avoiding data acquisition risks.
To learn more about the data insights awaiting to be discovered that can enhance your business decisions, read more about Envestnet | Yodlee’s corporate data analytics.