Post on 28-Dec-2015
transcript
6th November 2007Paul Rains
Payroll Software & Technology - Trends and Challenges
Human - Straw Poll
Stand up if you use Self Service Remain standing if you produce e-payslips for
your employees Remain standing if your absence or overtime is
entered by the line / employee using self service
Remain standing if the line inputs leavers using self service
Remain standing if the line creates new starters using self service.
Performance of HR / Payroll Systems
29% 29%
5%
37%
0%
5%
10%
15%
20%
25%
30%
35%
40% Yes MeetsRequirements VeryWell
No Do Not MeetRequirementsAdequately
No Do Not meetRequirements At All
Yes MeetsRequirementsAdequately
Source - PMP
Do your HR / Payroll IT systems meet / exceed you current requirements?
ERP or Best of Breed?
ERP Highly Configurable Costly to Develop Costly to Maintain Slow to Implement No interface
normally required Payroll is not usually
core business
Best of Breed Functionally Rich Specialist Knowledge Cheaper Option Quicker to implement Usually requires
interfaces Payroll is usually core
business
Current IT HR Systems Trends Browser Based
Web 2.0 E.g. Dot Net Global Solutions
Rules based Multi Currency Multi Lingual
Self Service Automated Workflow Point in time reporting Data Warehouse
Browser based Global Solutions Connectivity over the intranet / internet.
Just starting to appear on the U.K. market. Data can be viewed in any language / currency Rules based Highly configurable (like SAP / Oracle) give the
option of paying all employees, irrespective of their geographical location from a single database
Can be designed to dovetail with your own payment strategy if required, but designed for global deployment
Perceived benefits of a browser based system (source PMP)
Integrated Solutions True integrated solutions
Have a single Database Share common data which is entered and
held only once Usually capture data at source Permit segregation of duties if this is
required by the user Allow all types of data (HR / absence / T&A /
payroll) to be reported upon in a single report
Common Shared Data
HR Payroll Absence P11D
Personal Details
Contract Details (T&C’s)
Remuneration Details
Organisation Details
Financial Details
The Challenges ahead
UK HR Directors say that -
By 2020 all transactional processes will be devolved to employees or the Line, or they will be out sourced
0%
50%
100%
2007 2010 2015 2020
Outsource
Self Service
Central Input
HR guru - David Ulrich says
We must have HR innovators delivering innovate HR solutions
What should Payroll Practitioners do?
Seize this opportunity Accept you role will change Focus on strategic issues that add value to
your business Take ownership of all HR / Payroll processes Take ownership of HR/ Payroll systems and the
data they contain
INNOVATE...INNOVATE…INNOVATE
How can Payroll add Value?
Reduce process variation by: Automating a task that was previously done
manually. Eliminating tasks that a customer would not be
willing to pay for. Eliminate tasks that does not subsequently
change the output Measure the ‘before’ and ‘after’ effect to
quantify the improvement in numeric terms.
Which of these tasks add value?
Input of Overtime in to the payroll from a paper claim form /spreadsheet / email.
Issuing a duplicate P60. Keying in a new starter details personal details into
the payroll system from a new starters form. Keying in an employees sickness absence into the
payroll system from a paper based / emailed absence return.
Issuing a manual payment to rectify an error with an employees pay.
Checking all payroll input prior to the payroll running. Issuing a P45 for a leaver.
Short to Medium Term
Ensure the integrity, accuracy and completeness of all data
Strive to improve all HR / Payroll processes using intelligent workflow software
Make greater to use of Self Service
Long Term
Combine data for reporting purposes between systems that feed and receive data from payroll.
Combine data for reporting purposes between payroll and other internal systems that report / indicate profitability.
Develop reporting strategies to monitor and measure Human Capital Management
What is Needed?Greater alignment between HR IT Systems and HR transactional processes. HR strategic goals
and Human Capital Management
THE ‘H’ FACTOR
Systems Processes Strategy HCM
The Strategic Payroll Role
PROVIDE
OWN
INNOVATEDEVOLVE
ENFORCE
PAYROLL
Take Ownership
HR / Payroll data To ensure accuracy and integrity and the data
is used for the correct purpose.
HR / Payroll system Align functionality and technical capability with
HR strategy, business processes and requirements.
HR / Payroll transactional processes Align with HR policies and procedures and
sound accounting practices.
Innovate
Think about how you can help the business Design slick and automated IT solutions for HR
transactional processes Design slick processes that minimise WIP,
errors and re-work Provide management information to
operational managers to enable them to make informed business decisions relating to their people
Develop Innovative Solutions
True E-recruitment Capture basic personal details,
qualifications, previous work experience, competencies that feed HR / Payroll.
T&A interfaces - PDA’s / Phones Monitor attendance Capture hours lost / additional hours
worked / premium hours Absence, hours days lost
Time & Attendance Systems
Traditionally used to capture absenteeism and overtime payments Swipe cards Phones / Blackberries or PDA’s Develop by adding a rostering schedule
to allow operational mangers to make more informed decisions.
Calculate ‘lost time’ Calculate average Absenteeism rate
Typical Payroll Interfaces
IN OUT
T & A Absence, Sickness, Overtime, Shifts
Operational
Productivity Pay, Commissions, Bonus
Flex Bens Salary Adjustments (sacrifices)
HMR&C P9, P6, Student Loans
G L Payroll costs, cost codes
P11D Personal, benefits and Taxable Earnings
Flex Bens Benefit, Salary Details
Pensions Pension contributions and Earnings
HMR&C P45, P11 and P35 (EOY)
Consider interfacing or integrating these systems Fleet Systems
Company cars / vans Benefits and Remuneration
Flexible Benefits Expenses Salary Sacrifice schemes P11D’s Non cash Incentive Payments (PSA’s)
Detecting Trends – Smart Payroll Systems
Creating a payment profile for each employee Alert you to abnormalities in the profile before
payments are made. Remind you when a payment usually due this
period has not yet been processed Search engines to make comparisons for
benchmarking etc.
The reduction in errors and omissions = less re-work
Use EDI / FBI
In year forms P6’s, P9’s P45’s Student loans P46’s P46(car)
Year end forms P14’s, P35 P11d’s
Typical Payroll Workflow Processes
IN OUT
Overtime Authorise / Reject payment
Expenses Authorise / Reject payment
Absence Apply / authorise parental leave / pay
Starters Authorise for payment
Changes Authorise changes to salary
Leavers Recover any monies outstanding, Issue P45’s, SSP1 Forms
Starters Issue Form P46, produce File for WNU
Third Parties
Payments and Reports to Third Payments
Consider Automating
PAYE settlement Agreements (PSA’s) Independent Salary reviews using
workflow Third Party claims administration by
identifying it as an individual absence category and recording the cost and the financial loss
Use intelligent workflow as a task management tool
Manage your service delivery effectively Monitor the amount of WIP in the process
cycle at any point in time Identify bottle necks in the process cycle Escalate tasks that look like failing to meet
a KPI’s Use it as a tool to identify training needs Use it for Benchmarking KPI’s
Provide - Data Driven Business Solutions
Comparing point in time data enables analysis and trends to be identified. E.g. The relationship between overtime payments,
absence levels and headcount levels The data warehouse concept allows you to bring data
together from different systems for analysis E.g. How did the pay review in the sales
department impact on sales targets? E.g. How does the budget forecast from the
accounting system compare against the actual spend in payroll?
The Data Warehouse Concept
Total Reward Statements
Meta Data
Payroll P11D Accounting Flex Bens
Devolve Responsibility
Use ESS and MSS to help: Define and document all your transactional
processes Build automated processes in the build up to
gross with work flow tools Embed the rules into the workflow to maintain
an element of financial control Relinquish control and empower employees
and the Line
Self Service Survey
17%
3%
46%
34%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
No Plans atPresent
Don't Know
Plan to Do SoIn The Future
Have AlreadyDone So
Is you Company Implementing Self Service?
Source PMP
Smart Web Based Systems Makes delivering Self Service to the line and
employee very easy No internal /external communication considerations /
issues. 24/ 7 access anywhere anytime. You decide what screens you do NOT want as self service. The technology will enable intuitive forms to be created
easily. Any MS Word document or MS Excel spreadsheet can be
published as a web page for completion of data on-line. Rules built in will ensure that only the applicable fields
are completed accurately and all mandatory data is completed.
Employee Self Service Consider devolving to employees
Updating their own Personal details Updating their own Bank Details Applying for Annual / Paternity / Maternity /
Adoption leave Submitting an Overtime claim Submitting an Expenses claim Ordering a new company car Flexing Benefits Viewing Payslips / P60’s and P11D’s
Manager Self Service Consider the Line for:
Recruitment Recording sickness absence for their staff Approving Leave Requests Authorising O/T and Expenses claims Measuring and monitoring they own
performance in relation HCM Creating new starter / leaver records. Making changes to T&C’s and cost codes
Examples of good use of Workflow and B.I. Tools
When asking the line manger to authorise leave show them who is also off in that department at the same time
When a line Manager is completing a sickness absence show them any non-attendance patterns / trends for that particular employee and or a Bradford factor score.
When asking an internal customer to ‘sign off’ the payroll show them this periods payroll costs compared against the same period last year
Monitor & Measure
The Rule Enforcer Transactional processes in the build up to
gross and BACS submission. Minimise operational activity on all
transactional processes. The organisations PAYE liability is as low as it
legitimately can be. All HR policies and procedures are adhered to. That PAYE compliance is adhered to.
Consider creating an HR SSC
Do’s and don’ts Don’ t necessarily need an ERP system Do need clear and defined business processes Do need a clear HR IT system strategy aligned to business processes Do need clear definitions of roles and responsibilities Do need segregation of specific duties to maintain financial control
Benefits of HR SSC
Benefits Single location Economies of scale Specialisation Alignment of HR /
Payroll IT systems and Transactional processing strategy
Will reduce the risk of payroll alone being outsourced
Suggested HR SSC Delivery
In Summary
Your roles are changing Smarter web based systems will allow more
transactional processes to be devolved to the line or the employee.
Business will demand more information from HR / Payroll systems and other employee based systems to help them make informed decisions about their biggest cost (their people).
Data provided will need to accurate and up to date.
Financial control, PAYE compliance and data integrity must not be compromised