2014 GUIDE TO BACKROOM TO BOARDROOM PAYROLL AND HR

TABLE OF CONTENTS

1-2 Introduction

3 It’s a Mobile World 4 Mobility Overview 5 How Mobile is Growing 6 Mobility Trend: BYOD 7 Mobility Trend: Recruiting 8 Mobility, Payroll & HR: Part 1 9 Mobility, Payroll & HR: Part 2 10 Taking Advantage of Mobile Solutions 11 Mobility Review: Key Takeaways

12 Employee Engagement and Your Office 13 What is Employee Engagement 14 Employee Engagement Intro Quote 15 Why does Employee Engagement Matter? 16 What Type of Employees do You Have? 17 How To: Boost Employee Engagement at Your Company 18-19 How To: Boost Employee Engagement 20 Employee Engagement Review: Key Takeaways

21 Big Data 22 What is Big Data? 23 Big Data Intro Quote 24 Stats & Facts about Big Data 25 Big Data and the Small & Medium Business 26 Benefits of Reporting and Analytics Tools 27 More Benefits of Reporting and Analytics Tools 28 Big Data Summary: Key Takeaways

29 Conclusion

30 About Paylocity

INTRODUCTION

As a payroll or human resources professional, you are a powerful person in your organization.

Your department doesn’t live in the land of “nice to have.” You are solidly situated in the world of “get it done.”

People getting their paychecks – not optional.

Ensuring your organization is compliant with the law – make it happen.

Fostering communication between executives and staff – crucial.

Your world is important.

INTRODUCTION

But in the midst of “getting it done” payroll and HR are often pushed to the edges of the organization. Not seen as strategic. Not acknowledged as being the keepers of game-changing information and insight. Sometimes it might even feel like you’ve been relegated to the backroom.

The truth is, that’s not where you belong. (At least that’s what we think.)

At Paylocity, we think you belong not in the backroom, but in the boardroom.

Bringing the insight your department has to the table. Helping form the strategic direction of your organization. Adding real, lasting value to organizational leadership.

Making the jump from the backroom to the boardroom isn’t easy. But we think it can be done. That’s why we’ve put together this eBook, to talk about key trends and ways payroll and HR are making a difference in the corners of every business today.

The world of payroll and HR is important. It’s time to let everyone see it.

We know you can do it.

IT’S AM BILE WORLD

MOBILITY OVERVIEW

Mobile technology is revolutionizing the way businesses and their employees operate on a daily basis. Email vs. faxes. The cloud vs. filing cabinets. Even video conference vs. conference rooms. The business world is changing. In order for your business to succeed, adaptation is not optional.

The odds are good that a large majority of your company’s workforce uses some form of mobile device in their personal lives. In some cases, individuals may be using multiple devices. According to Cisco’s 2014 Mobile Traffic Forecast, there are more than 7 billion mobile devices active across the globe, of which 77 percent are personal smartphones*. But don’t let the idea of personal devices fool you. According to IDC research, 79 percent of smartphone users have their phone next to them for all but two hours of the working day.

It is estimated that by the end of 2014, there will be more mobile-connected devices on earth than there are people.

What does this all mean for your company? And more specifically, what does mobility mean to your Payroll and HR departments?

Of smartphone users have their phone next to them for all but two hours of the working day.

IDC Research Report – Always Connected, 2013

4 | It’s a mobile world

*Cisco: 2014 Mobile Traffic Forecast

HOW MOBILE IS GROWING Did You Know?

New smartphones were activated in 2013 alone.

The amount mobile data usage grew in 2013 alone.

Mobile traffic in 2013 was 18 times more than all internet traffic in 2000.

By 2018, mobile-connected tablets will generate nearly double the traffic generated by the entire global mobile network in 2013.

5 | It’s a mobile world

*Cisco: 2014 Mobile Traffic Forecast (all stats on this page)

MOBILITY TREND: BYOD BYOD (Bring Your Own Device)

The reality is, very few organizations do not allow any of mobile devices for work purposes. Increasingly, the discussion is not “will we” but “how will we” allow mobile device usage in our organization.

BYOD is the growing trend of organizations allowing employees to use their personal devices for work purposes. They may or may not provide any reimbursement or compensation.

According to an IDC survey, only 43 percent of mobile employees are provided company-owned devices, while as many as 80 percent of employees have their own mobile device that they use for work purposes*.

74 percent of companies have adopted a policy in which the business use of personally owned devices by employees is allowed, accommodated and encouraged.*

The Bottom Line

Of workers said a company’s BYOD policy influences decisions on whether to accept a job offer*.

6 | It’s a mobile world

*Citrix Mobility in Business Report, 2013*IDC Research – Human Resources and Mobile, 2014

BYOD is a real trend. Employers need to make a decision about whether they will allow personal devices to be used for work processes. Creating a mobile device policy is an important step to ensuring proper usage of company information and tools. For a sample policy visit: http://www.whitehouse.gov/digitalgov/bring-your-own-device.

MOBILITY TREND: RECRUITINGMany HR and Recruiting departments are recognizing the value of mobility. Recruiting departments are at the top of the list for company functions that can benefit from mobile capabilities*. Some of the most substantial benefits include:

Attracting and Retaining Top TalentAs mobile technology continues to change traditional workplaces, HR and recruiting departments are recognizing that embracing mobility, particularly in terms of how it impacts work-life balance, is key in recruiting top talent.

Enticing a Younger WorkforceAccording to a Cisco study, 40 percent of U.S. 18-30 year olds check their smartphones at least once every 10 minutes. Younger workers expect mobile access at work and view companies that lack mobile savvy as unappealing.

More Efficient Recruiting and OnboardingWith the growth of social media, an increasing number of job seekers are looking for opportunities on their mobile devices. The interview process has also been streamlined by mobile technology. Once you’ve made the hire, many onboarding systems are designed for use on mobile devices, particularly tablets.

7 | It’s a mobile world

*IDC Research – Human Resources and Mobile, 2014*Cisco: 2014 Mobile Traffic Forecast

Younger workers expect mobile access at work and view companies that lack mobile savvy as unappealing.

MOBILITY, PAYROLL & HR: Part 1

Let’s take a look at some of the most significant benefits of mobility to your Payroll and HR departments.

Streamlined Internal ProcessesNeed your employees to put in their time off requests or finish benefits enrollment? Have trouble getting new hires to complete onboarding materials? Being able to use a mobile device to complete routine or tedious tasks can improve usage and completion rates as well as overall satisfaction with the process. Depending on the software provider, many typical HR tasks can now be completed on smartphones or tablets, making it easy for employees to do these things conveniently.

Easier Access to Company Data & InformationEmployees no longer need to be in the office to access important company files. By remotely logging into company networks, employees can access all of their work files from anywhere they have an internet connection. Additionally, many companies are starting to embrace the cloud to further improve access to company data.

8 | It’s a mobile world

HR Tasks Gone Mobile:With advances in payroll and HR software, many organizations can now allow their employees to complete common tasks on any mobile device. Check with your software partner to learn what mobile solutions are available.

• Paycheck viewing

• Time off requests

• Approve Time off requests

• Onboarding

• Scheduling work shifts

• Benefits Enrollment

• Employee Recognition

• Time and Attendance

• And more!

Increased Employee ProductivityArguably the most significant benefit of mobility is increased employee productivity. This increased productivity is a result of several factors – an employee is less likely to be interrupted at home and perhaps more surprisingly, an employee is more likely to work longer hours when working remotely. According to a Citrix survey, workers who use mobile devices for both work and personal purposes put in 240 more hours per year than those who do not. Additionally, mobile technology has the ability to simplify the communication and collaboration process between employees, further increasing productivity.

Improved Real-Time Decision MakingMobile technology allows Payroll and HR department heads to access organizational information in real time – eliminating the need to manually run time-consuming reports at the office.

More Efficient Time and Labor Management (TLM)Some TLM solutions allow employees to clock in and out remotely, request time off, check schedules and more using their mobile devices. TLM systems like Paylocity’s Web Time also include GPS capabilities, allowing administrators to set “geo-fences” for employees, limiting the geographical area where clock in/clock out can occur.

Workers who use mobile devices for both work and personal purposes put in 240 more hours per year than those who do not.

—Citrix Global BYO Index, 2-13

9 | It’s a mobile world

MOBILITY, PAYROLL & HR: Part 2

*Citrix Global BYO Index, 2013

TAKING ADVANTAGE OF MOBILE SOLUTIONS?

How does a small or mid-sized business truly take advantage of all that mobile has to offer? Large enterprises have teams and budgets to build custom applications, but what can you do?

Even small businesses can leverage mobility in their organizations. One of the simplest ways to do this is to identify mobile functionality and applications provided by core vendors and partners.

Payroll and HR departments should ask their software vendors if mobile functionality is available. Some may provide web access or even mobile applications.

All of this mobile access can save your Payroll and HR departments significant time by eliminating inquires and phone calls from employees.

10 | It’s a mobile world

Key Considerations for Vendor Mobile SolutionsBefore you start encouraging employees to use Vendor XYZ’s app, here are a few things to consider:

• What is the cost? Some companies offer their app as a standard feature, but others may charge.

• Who is it available for? Check to make sure it will work on iOS, Android and possibly even Windows devices.

• Is it usable? Your employees are used to doing everything from banking to shopping on their mobile devices. They are most likely to utilize a work-related mobile app that is intuitive and visually appealing.

MOBILITY REVIEW: KEY TAKEAWAYS

• BYOD is quickly becoming a commonly accepted policy with 74 percent of companies allowing and encouraging the use of personally-owned mobile devices for business purposes.* Your HR department should be considering how to address.

• Mobile technology provides many benefits to Payroll and HR departments such as streamlining common internal processes and providing easier access to organizational information.

• Embracing mobility has been proven to increase employee productivity and morale. It also helps to attract and retain better talent.

• Mobile applications take the usefulness of mobile technology and make it even more efficient. What was once done through a web browser on a PC can now be done with one touch on your mobile device.

• Many service vendors now offer apps which provide mobile access to their systems. These apps are being designed with the user in mind and feature visually appealing interfaces. Check with your Payroll and HR provider to see if a mobile app is available.

*Citrix Mobility in Business Report, 2013

EM LOYEEENGAGEMENTAND YOU

WHAT IS EMPLOYEE ENGAGEMENT?

Most likely, employee engagement is a term that you’ve heard a lot about. But what does it really mean? Employee engagement is not employee happiness, nor is it employee satisfaction. As defined by the Business Dictionary, employee engagement is the emotional connection an employee feels toward his or her employment organization. Level of engagement tends to influence his or her behaviors and discretionary effort in work-related activities.

In the simplest terms, the more connected or personally aligned the employee feels with his or her company, the more likely that employee will be to put in the extra effort to ensure the company succeeds. Engaged employees aren’t just working for a paycheck. They are working because they want their company to succeed and they feel a sense of personal pride in their work.

13 | Employee engagement

Engaged employees are working because they want their company to succeed and they feel a sense of personal pride in their work.

Engaged employees aren’t just working for a paycheck.

People who believe their jobs are meaningful channel their “discretionary effort” into their work.—Hay Group Study - Engage Employees

and Boost Performance

WHY DOES EMPLOYEE ENGAGEMENT MATTER?

Highly engaged employees are 87 percent less likely to leave their companies than their disengaged counterparts and are up to 20 percent more productive.

—Corporate Leadership Council, 2010

90 percent of business leaders believe employee engagement has an impact on business success but 75 percent of them have no engagement plan or strategy.

—Dale Carnegie Institute, 2013

Companies with engaged employees outperform competitors, by up to 202 percent.

—Gallup, 2013

$11 Billion is lost annually due to employee turnover.

—Bureau of National Affairs, 2013

15 | Employee engagement

WHAT TYPE OF EMPLOYEES DO YOU HAVE?

According to the Gallup’s State of the Workplace Report, there are three types of employees:

Engaged EmployeesThese employees stand out amongst their counterparts because of the extra effort they bring to their roles on a daily basis.

• Willingly go the extra mile

• Work with passion

• Adamantly share the goals and values of the company

Not-Engaged EmployeesThese employees rarely stand out and are the typical “punch in and punch out” type of workers.

• Not blatantly hostile or disruptive

• Work just enough to fulfill their job requirements

• Have little or no concern about customers, productivity, profitability, safety, or quality

Actively Disengaged EmployeesThese employees can be a real detriment to your company. Typically these employees are clearly unhappy and often act out on their dissatisfaction.

• Consistently monopolize managers’ time

• Actively deter customers

• Create a sense of negativity around the workplace

16 | Employee engagement

*Gallup – State of the Workplace, 2013

HOW TO: BOOST EMPLOYEE ENGAGEMENT AT YOUR COMPANYEmployee engagement is very important to the overall success of a business. So what are some ways that you can help drive employee engagement at your company? Here are a few concepts that can significantly increase the level of employee engagement.

Establish a System for RecognitionOne of the most beneficial strategies is to create a peer-to-peer recognition system. According to Gallup research, when a team has a sense of affiliation, employees are driven to do positive things for the business that they otherwise may not do. Simple concepts like “Thank You” cards or electronic recognition badges can go a long way to improve camaraderie amongst employees.

Don’t Believe It? 41 percent of companies that use peer-to-peer recognition have seen marked positive increases in customer satisfaction.

—SHRM / Globoforce Recognition Survey

Paylocity’s Impressions tool, available on the web or mobile applications, allows for employees to send feedback that can be private or shared with everyone.

17 | Employee engagement

*Gallup – State of the Workplace, 2013* SHRM / Globoforce – Recognition Survey, 2013

HOW TO: BOOST EMPLOYEE ENGAGEMENTCultivate a Community of CommunicationAnother great way to boost employee engagement is to create an environment in which employee communication and collaboration is welcome and encouraged. Employee Self-Service (ESS) portals are an excellent way to provide employees with the most important information in one place. Additionally, ESS portals allow for managers to actively communicate with employees about projects, goals, and objectives.

Manage Employee PerformanceAn effective system for reviewing and communicating with employees is an important way to improve morale and engagement. According to a report from McKinsey*, praise and commendation from managers was rated the top motivator for performance, beating out other noncash and even financial incentives, by a majority of workers. Some payroll and HR software providers offer Performance Management tools that can greatly benefit your organization by improving the overall review process. Paylocity’s 360 Reviews allow for simple and collaborative review processes that give the manager and the employee a full picture of their performance.

18 | Employee engagement

*McKinsey Motivating People - Getting Beyond Money, 2009

Clear articulation about company vision from senior leadership, is a key driver of employee engagement.

—Dale Carnegie Institute Establish

a System for Recognition

HOW TO: BOOST EMPLOYEE ENGAGEMENTPerformance Management By the NumbersEffective Performance Management can significantly impact your bottom line. Companies that do a good job of managing performance have seen the following results:

Increased Employee Performance

—Talent Management, LLC Study

Decreased Cost of Hire

—Talent Management, LLC Study

Increased Revenue per Employee

—Talent Management, LLC Study

19 | Employee engagement

EMPLOYEE ENGAGEMENT REVIEW: KEY TAKEAWAYS• Not-engaged or actively disengaged employees can have a negative impact on both company morale and the bottom line.

• Engaged employees have an emotional connection to their company’s success and are willing to work harder to achieve it.

• Communication and recognition are two of the most important factors in increasing employee engagement.

• Effective performance management through reviews and appraisals can significantly improve employee productivity and job satisfaction.

• Peer-to-Peer Recognition and Performance Management tools like Paylocity’s Impressions and 360 Reviews can effectively increase employee engagement and help eliminate many of the manual processes facing HR departments. Check with your Payroll and HR provider to see if these tools are available.

BIGDAT

WHAT IS BIG DATA?

Companies of all sizes are generating more data today than ever before. In fact, according to IBM research*, 90 percent of the data in the world today has been created in the last two years alone.

Not only are companies generating more data, but they’re generating it at a higher velocity and in greater variety. This is the core concept behind the term “Big Data.”

Often the idea of big data is associated with “big companies.” However, small and medium businesses deal with their fair share of data. The biggest discrepancy between small/medium companies and large companies, is the systems in place to sort and analyze all of that data. Without the ability to properly sort and analyze big data, companies have a big problem – data is just data, not information.

In order to make well-informed business decisions, company leaders need access to strong analytics and insight. This insight allows companies of all sizes to more efficiently manage operational costs, improve revenue streams and analyze growth opportunities.

So how can you take the data your company generates and turn into valuable, visually compelling information and even game-changing insight?

22 | Big data

*http://www.ibm.com/smarterplanet/us/en/business_analytics/article/it_business_intelligence.html

Without the ability to properly sort and analyze big data, companies have a big problem – data is just data, not information.

“The ability to evaluate and apply data has always been an integral part of an organization’s success. But the potential that exists today to enhance operations and outcomes is nearly limitless. Those who understand how data works and what it can yield will carry enormous advantage in the new economy.”—Bob Herbold, Former Microsoft COO

STATS AND FACTS ABOUT BIG DATA

By 2020, over 1/3 of all data will live in or pass through the cloud.

Data production will be 44 times greater in 2020 than it was in 2009.

Percentage of data stored by enterprises.

Individuals create 70 percent of all data.

20202009

24 | Big data

*CSC Research - http://www.csc.com/insights/flxwd/78931-big_data_universe_beginning_to_explode

BIG DATA AND THE SMALL & MEDIUM BUSINESSWhile the sheer amount of data can vary depending on the size of the company, all companies regardless of size, need to approach the data they do have in the same way. Companies need to:

1. Determine what data is most important

2. Decide how they can leverage that data into ways of improving operations

One of the most important data sets for small and medium businesses is what they gather about their own employees and operations. More than likely, your Payroll and HR departments are frequently tasked with providing information that will play a significant role in strategic organizational decisions. Often times, small and medium businesses struggle to provide detailed analysis of this data because they lack the needed systems and reporting tools.

If your company struggles to analyze important payroll and HR data, or is forced to rely on tedious, manual processes, you may benefit from utilizing the reporting and analytics tools available with many payroll and HR software providers.

Only about 18 percent of small and about 57 percent of medium businesses utilize business intelligence and analytics solutions*.

25 | Big data

*SMB Group – Top 10 SMB Technology Trends, 2014

BENEFITS OF REPORTING AND ANALYTICS TOOLSThe data your company generates can be incredibly valuable if properly analyzed and evaluated. But in order to effectively analyze this data, you need access to the right tools. Let’s take a look at some of the most important advantages of reporting and analytics tools.

Evaluate How Your Organization has EvolvedSome of the most important data needed to grow your business is an understanding of how your business has changed over the years. Historical data such as compensation trends, department size, or employee longevity, can enable senior leadership of your company to make key decisions for the future. Unfortunately, for many companies, analyzing this data is very difficult, even impossible. Talk with your IT department or payroll software company to ensure that your valuable payroll and HR data is never purged.

Eliminate Manual ProcessesOne of most significant trends with big data is the surge of data available via the cloud. However, many small and medium businesses are still tracking or saving valuable payroll and HR data manually on multiple systems. By utilizing a cloud-based payroll and HR software, you can have instant access to all of your valuable information and can eliminate the need to track and update this information manually. Additionally, depending on the provider, you can analyze and report on this data instantly - whenever you need it.

26 | Big data

“Companies using big data tend to be five times more likely to make business decisions faster.”

—Wilson Raj,

Global Director of Customer Intelligence at SAS

MORE BENEFITS OF REPORTING AND ANALYTICS TOOLSFlexibility in Dealing with External ChangesRegardless of industry, companies are often faced with external obstacles that can affect their business. For example, the Affordable Care Act will require businesses to take a close look at their organizational structure to assess compliance status. Many small and medium businesses are worried about costs and regulatory risks because they may not have the capabilities to properly analyze their workforce. By utilizing some of the advanced reporting and analytics tools available with certain providers, these businesses can easily ensure that they are in full compliance before the ACA regulations begin.

Side Note

27 | Big data

If you aren’t sure how ACA is going to affect your business, visit Paylocity’s web site to learn the basics of what you need to know.

Check out Paylocity’s YouTube page to see videos on ACA compliance.

BIG DATA: KEY TAKEAWAYS

• Businesses of all shapes and sizes are generating more data today than ever before. From operational data to customer feedback, this data can be extremely beneficial to the success of a business if properly analyzed.

• The explosion of big data has led to a dramatic increase in the availability of tools to analyze and evaluate this data. Effective analytics tools are no longer only available to large enterprise corporations.

• Senior leadership at companies needs access to detailed insight, in a timely fashion in order to make important business decisions. Reporting and analytics tools can help sort through the data efficiently.

• Payroll and HR data is often some of the most pertinent information for key business decisions. But many payroll and HR departments are unequipped to effectively analyze this data without labor-intensive manual process. Payroll and HR software providers can give your company the tools it needs to deal with this challenge.

• External changes, such as the ACA requirements, can have a strong influence on a business. Having the flexibility to deal with these changes proficiently can position your business for future success.

CONCLUSION

The world of business is changing.

Payroll and HR departments are crucial to helping their organizations thrive through change.

From mobility to employee engagement to big data, Payroll and HR departments have the insight organizational leadership needs. What you might not have is the right tools, processes and software.

At Paylocity, we believe that with the right tools, you can move from “I think” and “it seems” to “I know” and “here’s what the data says.”

At Paylocity, we don’t believe you belong in the backroom, stuck with manual processes that keep you bogged down from even thinking about strategic influence.

We believe you belong in the boardroom.

With a seat at the table and the reports, graphs and charts in front of you, giving you all the information you need to make a difference.

That’s why we’re here. Because we believe in you.

ABOUT PAYLOCITY

Paylocity is a provider of cloud-based payroll and human capital management, or HCM, software solutions for medium-sized organizations. Paylocity’s comprehensive and easy-to-use solutions enable its clients to manage their workforces more effectively. Paylocity’s solutions help drive strategic human capital decision-making and improve employee engagement by enhancing the human resource, payroll and finance capabilities of its clients. For more information, visit www.paylocity.com.

Follow us:

3850 N. Wilke Road Arlington Heights, Illinois 60004 | www.paylocity.com