5 Red Flags Your Talent Management System Should Tell You

By Beth Kempton,
June 7, 2017

Payroll and related talent management costs can make up 50% of business expenses, so it’s critical for your talent management system to continuously identify areas for improvement. Other than paying employees, your payroll and talent management system can provide valuable insights and help inform key business decisions – especially if your payroll system is part of an integrated talent management solution.

Want to improve your business efficiency and profitability? Keep an eye on the following red flags your talent management system should be telling you.

Overtime Costs

How much does your business spend on overtime each pay period? Do you receive notifications when an employee is approaching overtime? Without a process in place to track and budget for overtime, annual overtime pay can end up causing your profitability to take a hit.

By running your payroll through an integrated talent management solution, managers and business owners can receive notifications each time an employee is approaching 40 hours, to prevent costly overtime. While workload calls for overtime on occasion, you don’t want to end up paying far more in overtime costs that what’s absolutely necessary. This simple, automatic change can end up saving your business thousands of dollars throughout the year.

Paid Time Off Usage

If you track paid time off manually, it can be costly and time consuming – and you may not realize when an employee is approaching his or her time off limit. By running your payroll and other HR processes on a talent management solution, you can get notified each time an employee approaches his or her paid time off limit – ensuring your business doesn’t lose money due to employees taking too much time off. Automated tracking and notifications can also help ensure your dealership supports a compliant PTO policy.

Turnover Rates

Every time a position is open, productivity is disrupted at your business. And employee turnover can leave you scrambling to quickly fill the role before too much productivity is lost. Do you have a handle on what is causing employee turnover?

With in-depth turnover analysis through your payroll provider, you can pinpoint key factors that might be causing turnover. For example, the data might point to several employees who reported to the same manager or worked at the same location leaving the company, in which case you might want to consider providing more training or replacing the manager.

A turnover analysis might point out red flags common for a specific role, such as a service technician at a dealership. If this is the case, it might mean the dealership needs a more effective onboarding and training process to set technicians up for success.

Employee Profitability

How long does it take for an employee to become profitable once he or she is hired? Tracking employee profitability is critical to ensuring you only have employees on your payroll who are bringing in results.

For sales roles, you can leverage your payroll and talent management solution to see such metrics as the time to first commission, average payback period and new hire turnover rates. If the employee has been on your payroll for months and isn’t proving to be profitable, you can come up with a plan to either provide more training or let the employee go.


State and federal compliance regulations are constantly changing, and can be overwhelming for a business owner or HR manager to track. An integrated payroll and talent management solution comes equipped with all the tools and reports needed to maintain compliance – and flag compliance risks – including employee verification, tax compliance, minimum wage and overtime compliance, equal employment opportunity compliance, and more. It also includes automated tax and reporting capabilities, such as: electronic IRS filing and pay withdrawals, automated reporting and data pulls, quarterly online tax statements, and new hire reporting.

By looking beyond simply paying employees and instead tapping into your payroll and talent management solution for actionable business insights, you can be well on your way to improving your business’s overall profitability.

Interested in learning more about how to make your business run more efficiently? See our talent management solution and schedule a demo today.

About the Author

Beth is the content strategist on Hireology’s marketing team, responsible for creating compelling blog posts, eBooks, marketing materials and other content. Her background includes five years of experience at a B2B digital marketing agency, where she crafted content for a variety of clients, including several in the HR technology space. Before beginning her career, Beth attended Loyola University Chicago, where she studied advertising and public relations.

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