Payroll Analysis

What is payroll analysis?

Payroll analysis is the process of using a variety of analysis methods to comprehensively analyse the payroll data of an enterprise within a certain period of time, so as to reflect the current payroll status, diagnose payroll defects, so as to promote the development of human resources tasks and put forward optimisation.

Why is payroll analysis important?

As one of the important tools of human resources, HR or employers can see the salary ratio of employees in different positions through relevant data to check whether the salary distribution of each position/department is reasonable, and adjust the payroll system based on the reflected problems, thus controlling costs.

The principle of payroll analysis

In order to have a good payroll analysis, the implementation generally includes two aspects. The first is authenticity. Payroll data is based on the comprehensive personal payroll data, which is based on the existing employees and collects their basic salary, bonuses, subsidies, sickness allowances, year-end bonuses and other pay items within a fixed period. The second is comparative. In order to accurately reflect the internal structure and fairness, it is necessary to sort out the data of each department, position, and employee by types, so as to analyse and solve possible HR problems.


A set of accurate payroll analysis reports can make payroll data more valuable so as to make the best business decisions.

Workstem HR data analytics analyses and compares the company’s past financial data and imported market data to help employers gain real-time insights into the changes in the company’s employee costs, and examine, predict labour cost trends to make a reasonable business strategy and truly realise the maximum output of employee value.