Enhancing Payroll Accuracy with a Power BI Payroll Dashboard for a Multinational Manufacturing Company

Business Challenge:

A leading multinational manufacturing company based in India faced significant challenges in payroll accuracy after transitioning to a new HRMS software. Previously, payroll calculations were managed using an outdated flat file search program called Fox Pro. With the introduction of the new HRMS software, payroll processing became split between the HRMS (50%) and SAP (50%), creating inconsistencies and errors. Given that payroll data is influenced by multiple departments including finance, HR, and production, the HRMS struggled to handle the dynamic data that varied monthly. The client needed a robust solution to ensure accurate payroll calculations and streamline the payroll process.

Kapsights Approach:

To address these challenges, Kapsights implemented a comprehensive strategy leveraging Power BI for data integration and analysis. The key steps in our approach included:

Process Identification and Data Collection

• Identified all processes impacting payroll calculations.
• Collected data from various sources required for monthly payroll calculations.
• Developed an understanding of the data architecture needed for effective data collection and cleansing in Power BI.

Stakeholder Engagement

• Engaged with stakeholders to interpret data sources and capture mechanisms accurately.
• Ensured clarity on data requirements and sources.

Data Architecture and Cleansing

• Designed an architecture to integrate and cleanse input data from different departments.
• Utilized various tools like folders, MS Access, and SharePoint to automate data refresh processes, minimizing manual intervention.

Exploratory Data Analysis

• Conducted exploratory data analysis to identify key variables in salary slips.
• Fetched SAP payroll data to perform data verification against raw data from multiple sources.

Automation and Reporting

• Integrated Power Automate to report data discrepancies after each payroll iteration.
• Developed a dynamic dashboard showcasing key payroll KPIs to ensure accuracy.

Tools used

Used Excel, HRMS, SAP, MS Access, Sharepoint

Results:

The implementation of Kapsights’ analytics solution resulted in significant improvements:

• Reduced Payroll Processing Time: The time required for payroll calculation was significantly reduced from 15 days to a much shorter period.
• Simplified Payroll Reconciliation: Introduction of a dashboard-level checking mechanism with automation streamlined payroll reconciliation.
• Reduced Employee Grievances: Employee grievances decreased due to increased payroll accuracy.
• Enhanced Payroll Reporting: Monthly payroll data became readily accessible on the client’s cloud server, simplifying reporting.
• Improved Stakeholder Engagement: Increased visibility of payroll data improved engagement among multiple stakeholders.

By leveraging Power BI, automation tools, and a structured data architecture, Kapsights ensured a seamless and accurate payroll process for the client, enhancing overall operational efficiency and stakeholder satisfaction.