Embed Size (px)
Citation preview
Payroll OptimizationDiane Hirt – KivalaHR
Sept. 12 - 2013
Diane Hirt - Bio
• Over 25 years in HR/Payroll process with 12 years in SAP HCM technical space leading support teams, lead
large SAP HCM implementation which included design, build, test, change management, training,
organizational design, process improvement, compliance, centralization of HR and Payroll operations.
• Started as a payroll clerk in 1987 for Interstate Bakeries Corporation. IBC acquired Hostess Bakeries in 1998
which increased the employee population by three times the current size. I lead the payroll acquisition team
which started my career into IT and process improvement. In 2003 Hostess Bakeries chose to implement an
ERP system SAP. For the next eight years I would lead the implementation of SAP HCM, creation of the IT
production support department and moving a decentralized payroll department to a centralized Shared
Service Center.
• Since 2011 I have been a consultant for Kivala-HR leading SAP payroll implementations including system,
functional and operational aspects of the projects.
Copyright Kivala-HR 2012 2
Are You Stuck in Day to Day Operations Mode?
Copyright Kivala-HR 2012 3
Garnishments
Unbalanced Workload
Excessive Overtime
FirefightingManual
Processes
I don’t know why
but it works?
Band-Aid
Fixes
Keying
Payroll Policing Policy Turn Over
Automating and Simplifying the Workload
Key Payroll Functions
Copyright Kivala-HR 2012 4
• Time Entry
• Absences
• Quotas
• Attendance
• Approvals
Time
• Master Data Changes
• New Hire
• Terminations
• Transfers
• On cycle Processing
• Off Cycle Processing
• Audits
Production
• New Orders
• Releases
• Processing Rules
• Reconciliation
• Answer Letters
• Interrogatories
Garnishments
• Master Data
• Balancing
• Tax Laws
• Guidelines
Tax
• 3 Way Match
• Reconciliation
• Posting GL
• Banking Files
Accounting
By examining each of these key functions, you identify opportunities for automation, upstream improvements, and enhancements. This can be accomplished through:
• Process Steps/Controls• System Controls• Threshold Audits or Balancing/Reconciliation
Maturity Cycle
Copyright Kivala-HR 2013 5
Careful examination of each of these will help you move through the maturity cycle
• Uploads• Intelligent Reporting• Job Scheduling
• Uploads• Intelligent Reporting• Job Scheduling
• Create Audit Reports• Standard Templates• Reconciliation of Tax and
Payroll Accounting• Checklists
• Firefighting• Paper Intensive Processes• Long Processing Times• Large Ticket Volume• Excessive Headcount• Band-Aid Fixes
• Centralize and Standardize Processes
• Drive Change Across Entire Organization
• Documentation of all processes (SWI – Standard Work Instructions)
• Effective Communications• Team Building within
Department
Upstream Your
Organization
Harmonize the
Organization
Automate & Design
System to Work for
You
Manual Processes
Manual Audit Controls & Standard
Processes
• MSS Forms• Approval through Workflow• Time approval• Online Reports
Process Harmonization
Copyright Kivala-HR 2012 6
As you move away from Manual processes toward harmonized rules and processes, all the “pieces” come together for a mature organization.
The system is designed and automated to work for you through:
ChecklistsManager & Employee Self Service
UploadsIntelligent Reporting
Scheduled
Jobs
Audit Controls
Issue Resolution
Copyright Kivala-HR 2012 7
An organization that is just maintaining a day to day operation as a main goal of
Making the Employee Whole (pay is accurate) is missing the boat
A mature service delivery model:Uses audit procedures to proactively identify any possible issuesInstitutes root cause analysisInitiates a mitigation plan to make sure it will not happen again
The ultimate goal of a mature service delivery model is streamlined processes that maximize accuracy and efficiency.
Mature Service Model Tools
Copyright Kivala-HR 2012 8
• Processing: production, tax balancing, garn & accounting/treasury
• Separation, new hire, transfer, International Assignment
• Quarterly tax balancing
• Yearend checklist
Checklist
• < $ and >$
• No Net Pay
• No Pay Results
• Terms with Pay
• Claims
• < hours in a period; >hours in a day
• Review of retro
Threshold Audit Reporting
• Portal entry
• Mass upload forms
• Interfaces
Minimize Data Entry
• Cross Training
• System Training
• Team Building
• Succession Planning
Training
FIND THE TIME!
Process Optimization Steps
Copyright Kivala-HR 2012 9
