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American Payroll Association - Fall forum 2013 - Global Payroll: Choosing the Right Solution
Citation preview
Fall Forum
1
Global Payroll Choosing the Right
SolutionGinny Elkins, CPPNorthgateArinso
North American Payroll COE Director
Agenda
Determine the Best Solution •What are your reasons for outsourcing
•What separates the best from the average
Preparation and Evaluation•What are your capabilities to outsource
•What does it really cost you
•Developing your business case
3
Agenda
Pro’s and Con’s•Advantages and Disadvantages
Gaining Acceptance •Culture change
•Mitigating the challenges
•What will make you successful
4
Determining the Best Solution
What are the key reasons that most Global companies try to outsource?
Reduce Costs Allows your business to focus on its primary business
Improve Quality Reduce errors and streamline processes
Improve Business Agility Standard reporting globally in order to make quicker more informed decisions
Improve Employee Experience One-stop-shop for all HR/Payroll questions
Improve Technology Outsource to gain the “latest and greatest”
Standardize Policies and Processes Force standardization and alignment across all business units
5
Determining the Best Solution
Outsourcing Relationships:
Separating
the MOST
from
the BEST
6
Determining the Best Solution
Ensuring the entire end-to-end business processes are part of the deal •Example: recruiting, learning,
performance management, employee administration, payroll, taxes and benefits
•Focus on the “whole” instead of trying to measure the individual services
7
Determining the Best Solution
Collaborative Governance•85% of high performers consider their
outsourcing provider a strategic partner
Compared to 41% of typical performers
• It is not just about a set schedule of meetings
It is about attitudes and behaviors between the parties
8
Determining the Best Solution
Change Management •88% of high performers regard change
management as important
77% of high performers execute successfully
41% of the most execute successfully
9
Determining the Best Solution
Value beyond costs •Prime motivation is NOT cost reduction
•Stronger focus on potential value to the business beyond cost
Better election of top performers
Improved retention of critical performers
Accelerated time to competency
10
Determining the Best Solution
Business Outcomes •Top performers use measurable and
specific strategic outcomes
•Deals are made to reward or penalize to achieve greater ends
11
Determining the Best Solution
Domain Expertise and Analytics•High performers work with providers to
realize new sources of value
•Greater visibilities
Controlling costs
Increasing employee productivity
Improved retention
Reductions in voluntary turnover
12
Determining the Best Solution
Retained Organization Transformation •High performers place importance on
their own internal transformation
•Outsourcers help ensure retained organization aligns with the delivery model
Roles
Responsibilities
Skill sets13
Determining the Best Solution
Technology as the Enabler •The source of innovation and advantage
Streamlining environments
Reducing the number of systems
Centralized platforms
From HRO Today – Greater Expectations May 2012 Jill Goldstein
14
Prepare and Evaluate
What are you capable of outsourcing? •Determine your business
maturity
•Evaluate end-to-end processing by measuring (by country or region) your maturity
15
Prepare and Evaluate
Business Maturity1
Don’t know2 3 4
5 Top Performer
Time and Attendance Manual or
various solutions- - - Automated,
standard platform
Number of Payroll Systems
Many with no integration
- - - Few –
Consolidated global reporting
Level of Payroll Accuracy < 95% - - - >99.5%
Level of Self Service None - - - Full EE and MGR
Self Service Utilization Limited - - - >99.5%
Cost per payment processed
>$5.00 - - - <$4.00
Time to calculate & approve
More than 1 day - - - Less than a day
TechnologyIn-house or not
on current version
- - - Full integrated across platforms
16
Prepare and Evaluate
Know your costs by process •Utilize resources from APA
Determine which tasks• Is the task generic?
Routinely performed by outsourcers
Transactional
Value to the business
• Is the task business critical?
Requires vital internal business knowledge
17
Prepare and Evaluate
Direction and Strategy – Develop your Case
18
Prepare and Evaluate
19
Pros and Cons
Advantages and Disadvantages • Sounding like a broken record????
. . . Keep listening
20
Pros and Cons
Advantages Disadvantages
Speed and Knowledge Risk of Exposing Confidential Data
Concentrating on Core Processes Synchronizing the Deliverables
Risk Sharing Hidden Costs
Reduced Operational & Recruiting Costs
Lack of Customer Focus
21
PROS
22
CONS
23
Accepting Change
24
Change has to be managed as a TOP PRIORITY
Accepting Change
Results of Unmanaged Changed:
Post-contract processes and decisions not understood
Little or no support from client leaders receiving the services
Poor mutual understanding of the contract
Client retained team not in place or too small
25
Accepting Change
Client retained team lacks required skills or ability to make decisions
Loss of key talent/poor knowledge transfer
Inability to meet demand for services
End-user resistance to adopting new methods
Culture clash between client and service provider
26
Accepting Change
Mitigating the Challenges
27
Accepting Change
28
Accepting Change
A Well Designed and Executed Change Management Plan will be the difference between . . .
29
30
Thank youPlease complete your
evaluation