Mary HullDirector, Global Payroll and Mobility Lead

Pfizer

Building a Global Payroll Foundation

Facts & Figures

• Research based, global biopharmaceutical firm

• $49B in global sales

• Innovative Health and Essential Health

• 98,000 colleagues in 95 countries

• Brands: Prevnar, Eliquis, Lyrica, Viagra, Lipitor, Chantix, Advil, Chapstick, Nexium

Global Payroll Integration StrategyOver the past 4 years, our aggressive strategy of global payroll integration has focused on:

• Best in class payroll operations

• Vendor consolidation and optimization

• Process and system streamlining and standardization

• Company agility

• Cost reduction

• External compliance

• Reduced management burden

Where We Started

In 2012, Pfizer had a decentralized, non-standardized, not connected collection of payroll systems and vendors

2012 Profile

countries different systems different vendors

95 64 44

On average, Pfizer payroll administration and time and attendance costs were over 35% higher than our peers

Where We StartedConcerns:

• Inferior existing systems

• Too many different vendors, systems, and interfaces

• Fewer colleagues with intricate payroll knowledge

• Diminishing HR BT support

• Finance to HR ownership in emerging markets

• Poor corporate agility in responding to M&A and divesture decisions with significant dependencies on payroll systems

!

First Focus: Global Payroll Transformation

• Initiated by move to global shared services model for HR support and upcoming Workday integration

• Business case prepared regionally and global payroll integration project initiated in 2013

• Realized complexity of global payroll project and cost savings that could be achieved

• Project completed in 2 phases, with final go-live planned for 2017

Where We Are Now

• Target savings of $5.8M and 35 FTE

headcount; currently overachieving the

target

• Strategic relationship established

with ADP

2016 Profile

of 95 countries integrated

different systems different vendors

66 23 13

Global Payroll 2016

Summary

66 of 95 Countries Integrated

23 Systems

13 Vendors

In Scope

Deferred, Cancelled or N/A

Implemented

US/PR (2)Phase I: 2 Countries

Go-Live: January 2015

LATAM (13)Phase II: 13 Countries

Go-Lives: 2015 – 2017 AfME (22)Entire Region

Go-Lives: 2013 – 2014

APAC (8)Phase I: 8 Countries

Go-Lives: 2014 – 2016

EUROPE (22)Phase I: 16 Countries

Phase II: 6 CountriesGo-Lives: 2013 – 2016

Notable Deferred:

Russia Federation

DACH Cluster

BeNeLux Cluster

China

Mexico

Brazil

Spain / Portugal

Turkey

Canada

What We’ve Learned and What Has Changed

• Vendor consolidation, process streamlining and standardization was important for Workday integrations and efficiency

• Transition to “business as usual” was challenging; markets took longer than anticipated to stabilize

• “Payroll” often included other HR processes in the end-to-end definition

• “Add-ons” often changed the pricing assumed in the business plan

What We’ve Learned and What Has Changed

• The business model and conditions in some countries change over the course of the implementation and should be re-evaluated

• Importance of global-level payroll governance, decision support and interface standards

• Need subject matter experts with local expertise

• Need dedicated project managers

3 Year Strategic Focus

Operational excellence

Build on the success of global payroll integration efforts and focus on:

Vendor governance

Continued value improvement and cost reduction

Company agility Workday integration and colleague experience

Strategic Considerations and Influences

What HR and BT are asking for:• Simplification & standardization

• Stronger vendor performance & accountability

• Increased value/lower cost

• Scalability and consistency in acquisition & divestiture

• Regulatory compliance

• “Delighted” colleagues

What the business is asking for:• Flexibility and agility

• Colleague engagement

• Increased value/lower cost

• Reporting and analytics

What colleagues are asking for:• Easy access to useful information

• Mobile apps

• Accurate payroll

• Fewer touch points; more self-service

Global Payroll Strategy 2.0Build on the foundation of an emerging best-in-class, integrated Global Payroll program through:

Continued Integration

Operations and Process Improvement

Harness Data and Analytics

Mergers and Acquisitions