American Payroll Association - Fall forum 2013 - Global Payroll: Choosing the Right Solution

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Fall Forum 1

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American Payroll Association - Fall forum 2013 - Global Payroll: Choosing the Right Solution

Transcript of American Payroll Association - Fall forum 2013 - Global Payroll: Choosing the Right Solution

Page 1: American Payroll Association - Fall forum 2013 - Global Payroll: Choosing the Right Solution

Fall Forum

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Page 2: American Payroll Association - Fall forum 2013 - Global Payroll: Choosing the Right Solution

Global Payroll Choosing the Right

SolutionGinny Elkins, CPPNorthgateArinso

North American Payroll COE Director

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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

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Agenda

Pro’s and Con’s•Advantages and Disadvantages

Gaining Acceptance •Culture change

•Mitigating the challenges

•What will make you successful

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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

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Determining the Best Solution

Outsourcing Relationships:

Separating

the MOST

from

the BEST

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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Prepare and Evaluate

Direction and Strategy – Develop your Case

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Page 19: American Payroll Association - Fall forum 2013 - Global Payroll: Choosing the Right Solution

Prepare and Evaluate

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Pros and Cons

Advantages and Disadvantages • Sounding like a broken record????

. . . Keep listening

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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

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PROS

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CONS

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Accepting Change

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Change has to be managed as a TOP PRIORITY

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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

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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

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Accepting Change

Mitigating the Challenges

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Accepting Change

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Accepting Change

A Well Designed and Executed Change Management Plan will be the difference between . . .

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Thank youPlease complete your

evaluation