System replaced:
Internet Company had in-house software from Other Payroll Company and a bureau service which completed the BACs payment and produced the payslips.
Following an internal review by the payroll manager the company decided to bring all elements in-house and replace the existing software, as it no longer met the company’s needs.
System purchased:
A lengthy shortlisting and tender process then took place, with Payroll Done being selected for its scalability and its integration capabilities.
Internet Company drew up a list of its requirements and awarded each requirement an importance rating. Payroll Done's rating on that document is submitted as a supporting document to this entry – this information is confidential and should not be copied (eg printed out) in any form.
Implementation procedure:
Internet Company and Payroll Done signed the contract in February 2007 and the system went live in June 2007.
The implementation procedure began as soon as the contract was signed. A project group consisting of two people from Payroll Done and the payroll manager and an IT staff member from Internet Company was created. The Group met for the first time in the last week of February, where the time-line for implementation was finalised and the Group agreed on areas that needed investigating.
The time line for implementation is submitted as a supporting document to this entry – this information is confidential and should not be copied (eg printed out) in any form.
It was decided that because of year-end that the main implementation work wouldn't start until after year-end filing was completed in April.
The biggest task related to the data cleansing exercise that needed to be carried out. The team agreed that it would take place at the end of April. Payroll Done agreed to draw up a data cleansing guide to the give the Internet Company a process to follow and also to highlight any errors where there were likely to be problems.
Once the data cleansing was complete the data was transferred to Payroll Done's hosted software and a training scheme for Internet Company employees in payroll took place at the beginning of May. A duplicate dummy run of the May payroll was carried out to identify any problems.
A meeting with all Internet Company payroll employees and four representatives from Payroll Done took place shortly afterwards and any problems were identified and the fix agreed. The document prepared as a result of this meeting is submitted as a supporting document to this entry – this information is confidential and should not be copied (eg printed out) in any form.
The payroll then went live for the June payroll.
Integration with other systems:
The payroll system needed to integrate with Internet Company's personnel software, flexible benefits software and P11D software.
Payroll Done was able to create an automatic sharing of information with the personnel software, an improvement on the previous process which required HR to generate and submit updated information to payroll for re-keying.
The flexible benefits and P11D software were already submitting automated updates, so it was just a case of transferring these to Payroll Done's system.
Facts and figures:
Since implementation Internet Company has seen a number of improvements to its payroll, both in terms of staff performance and the sort of projects they have been able to take on.
Previously staff in the payroll department were spending a lot of time dealing with employee queries, particularly the staff from an acquired company. Following the introduction of Payroll Done's software employee queries are down 70%. Payroll processing time is down as a result and one payroll employee has moved to another role, although they are still able to use the system and have training at regular intervals to ensure they can step in if necessary. Payroll has been able to introduce an improved maternity pay package, created by HR to aid recruitment, with minimum of fuss. The integration between the two systems helped, as did the freeing up of a payroll employee to focus on introducing joint HR/payroll projects. HR and payroll initiated discussions on the proposed package in Feb 2008 and the system was up and running by April 2008.
A new salary sacrifice scheme was introduced at the start of 2008. This was developed in the six months after system implementation and was one of the main drivers behind the software purchase. HR had been keen to introduce the scheme for a while, but it was not possible with our previous software. The scheme had a 40% take-up and this was in part due to the joint communication that payroll and HR undertook, but also to the software, which enabled us to easily generate examples for employees. This allowed them to see the impact on their salary.
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