This is the fifth in a series looking at the five critical reports every business needs, but most businesses can’t get from their payroll service. Today we’ll discuss the labor allocation report.
Success in business depends a lot upon flexibility. You need to be able to allocate resources where they are needed, and to do it quickly. That kind of flexibility doesn’t happen without preparation: forecasting demand in different sectors, negotiating contracts to control future costs, cross-training employees. That kind of flexibility also doesn’t mesh well with the inflexible reporting options typically available from a payroll service.
If flexibly allocating labor is a key factor in business success, then a meaningful labor allocation report is the key metric for measuring it. The standard payroll report will spit out a labor allocation report by earnings, but most companies need a lot more information, including data organized by:
- cost center,
- job, or
Innovative labor solutions that control costs and maximize profits have transformed how we do business. An employee may be a CSR in the morning and an admin at night. They may work in multiple departments, or for two or more related businesses. These kinds of solutions are keeping companies competitive, and represent the creative power of the entrepreneurial spirit.
They are also giving payroll services fits.
Services do their level best to provide a selection of standard reports, but labor allocation is hard to pin down. Like the general ledger report, the information is fairly standard but the data a company needs to pull from it varies widely. Because there are so many different ways to configure a labor force, there’s no possible way to create a standard allocation report which is useful to all of their clients. Different organizations need the data grouped and organized differently, and that’s well beyond the capabilities of a service trying to satisfy thousands of clients with a single report.
To gain that level of visibility into your labor allocation, you’re going to need a custom report on these critical data. If you’re discovering that this is the answer you get from your payroll service more often than you’d like, contact us to learn how to take control of your payroll and make your own decisions about what critical reports you need.