Given the continued acquisition and subsequent rapid growth of many different businesses, payroll processes had become divergent and inconsistent across the organisation. The disparate processes eroded the anticipated back-office benefits of the centralised payroll function. Over 100 pay points had been created with varying period end dates and pay dates as new business were transitioned to the centralised service. While self-service had been implemented, the employee-based security model created significant maintenance over-head given the high turn-over and volume of employee movements.
The project included using online forms to replace a number of paper-based processes, a significant reduction in pay points, automated timesheet processing and enhanced reporting, at all levels of management. The expected business benefits included: increased timeliness of key payroll processes, increased service to the business, enhanced information for management decision and increased efficiency of the payroll function.
Challenged with being a duel sector University and doing more with less, SnP supported VU through an evaluation and selection process to precipitate the most suitable HRIS.
Challenged by an aging payroll/ HRIS CSR needed to start to consider alternative solutions. Having developed the current system over the last 17 years it was going to take some product to match the current system capability as a baseline.
Professional Advantage (PA) had been using the Genius payroll system, supplied by Micropay, since 1997. This DOS-based system was approaching the end of its supported life. Since the purchase of Genius, internal and external influences had resulted in a widening functionality gap between the original system supplied by Genius, and the changing requirements of the organisation.
Payroll was processed completely in-house and periodic instability of payroll resources highlighted the risks associated with maintaining the current payroll processing model. This system provided no automation capabilities and consequently numerous manual processes had been developed making the payroll process inefficient, tedious and prone to inaccuracies.
With the payroll resource about to leave for maternity duties, PA had to act quickly to capitalize on this window of opportunity to review current payroll systems and process and create significant improvements and reduce risks.
The services of SnP Consulting were recruited to provide a situational analysis, and systems, build the requirements list, and take the organisation to market for a new system and potentially a new payroll services delivery model.
- Continual legislative changes in the areas of taxation, OH&S, superannuation, privacy and industrial relations, including the new Work Choices legislation
- Organisations are generally moving off DOS-based payroll products in favour of windows products using relational databases because of their improved reporting and interfacing capabilities
- Organisations are tending to use externally hosted payroll/HR applications (ASP) rather than hosting these systems in-house
Maintaining payroll resources (including reserve resources) is difficult because there are numerous manual work-arounds developed to compensate for the functional deficiencies of the Genius system.
- The organisation had experienced significantly growth since the current system was purchased, increasing the need for improved people management information and services for team leaders and senior management
- A growing requirement to store people management information including: training completed, training recommendations, appraisal information, company property and additional notes and documents stored against an employee.
- Managers currently have no online access to team information to assist them in their roles. Management currently receive excel leave reports which are manually prepared and distributed
On review of the internal and external analysis the objects of the project were defined:
- Increase the efficiency of the payroll service and reduce the resource requirements. Resources to be re-deployed into value-adding activities
- Reduce the knowledge requirements of the payroll resource(s) by simplifying the process. This will make it easier to find and train resources including reserves
- Improve the quality, timeliness and access to payroll and people management information and services provided to internal customers (including manager and employee self service)
- Improve the quality (data integrity), range and timeliness of payroll and people management metrics and trend information provided to senior management to improve resource planning
In summary this project sought to streamline the transactional components of processing the payroll and improve the service to internal customers by augmenting the people management information and services provided.
So what value did SnP add to the process?
Within the 2 month window SnP conducted the situational analysis, developed the functional requirements, evaluated a short list of systems and providers, developed the business case with the recommendation...(stopping for a breath)…assisted with contract negotiations and project planning.
OK great but what system did they go with?
The three payroll delivery models were evaluated: full outsourcing, partial outsourcing and application only outsourcing. A partial outsourcing model was deemed to provide the best fit. Three vendors were evaluated against the critical success factors and project objectives for functionality, service delivery and costs. ADP’s partial outsourcing model using their Payforce National payroll and self service application was deemed to have best functional fit, provide the desired mix services and options, and also fell within the budget constraints.
SnP gained another happy client and everyone at Professional Advantage lived happily every after, enjoying their new system, processes and services.