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Payroll KPIs To Track For Healthcare Business Success

What’s the pillar of your Australian healthcare business?

If you’ve been in business for long, then you know that payroll and staff management are two of the most important supporters of a healthcare facility. Payroll costs form one of the most significant elements of any business outgoings. Hence, it’s necessary to pay special attention to payroll metrics and optimise them.

However, tracking payroll KPIs is easier said than done, and manual methods and spreadsheet-based solutions are rarely effective. Also, another mistake that medical businesses make when it comes to payroll KPIs is running after the wrong metrics. This is a grave mistake that can have far-reaching consequences.

Therefore, to make sure you don’t fall into that same hole, we’re going to take time and discuss the top payroll KPIs. Tracking these can help ensure the success of your Australian healthcare business.

So let’s get trackin’.

Payroll Costs

This is one of the first metrics you should be tracking. After all, knowing the cost of running Payroll can allow you to identify the avenues of making payroll less expensive. In order to derive the total cost of payroll, you need to clearly identify every cost that payroll processes incorporate.

Some of the important questions that you should consider are payroll payment, payroll accounting costs, and IT payroll. In addition, you must also know how much payroll costs you over specific periods of time. To do this, you need to maintain adequate records and preserve them over time.

Finally, pay attention to the payroll costs per employee. This is an important metric to ensure that every employee gets paid the right amount. Also, optimising this metric can help to lower overall payroll costs.

Time Of Running Payroll

Often, businesses make the mistake of considering monetary costs as the most important factor for optimising KPIs. What they fail to realise is that time is an equally important resource and must be saved as well.

The time of running payroll is one of the most important metrics to track for ensuring the efficiency of your healthcare centre. By tracking how long the complete payroll process takes, you stand to reduce the time that is needed for the same. Therefore, from the point of attendance to the distribution of the final paycheck, every step must be tracked, measured and hence optimised.

Revenue Per Employee

This is another important KPI that you must be tracking for your payroll.  Knowing how much each employee helps you generate is essential to the success of your medical business. However, don’t think that calculating the revenue per employee is as simple as dividing total revenue by the number of employees.

Not every employee holds the same responsibility or is responsible for providing the same contribution to your business. Therefore, trying to manually handle this metric is not a feasible idea. It’s best to rely on automated tools that can weigh the various factors and provide you with the right outputs.

Leave Rate

This is the rate at which employees are taking leaves from your organisation. Leaves can be detrimental to the success of your healthcare business. If a large number of employees are constantly absent from regular work, then the performance of your healthcare centre is bound to suffer.

Also, in case your company policy mandates employees to receive a pay-cut against leaves, then also this is important. Further, leave rates are an indicator of whether your employees are maintaining the right work-life balance. Based on the outcomes of this analysis, you can take policy decisions for your business.

Overtime Rate

Contrary to popular belief, overtimes are not an indicator of extra work, but rather inefficiency. In case your employees are being paid for overtime, this means they are not getting the work done during regular office hours. This can actually push up your operating costs; hence overtime rates need to be optimised and aligned with your business goals.

Final Words

Optimising payroll is one of the best ways to ensure that your business reaches greater heights. And KPeyes can be your ultimate solution for measuring payroll KPIs. By leveraging the power of payroll management software such as KPeyes and Xero, your Australian medical facility can function better than ever.

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