“Strong Change Management Skills and Communicating Payroll Issues

for Success”

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Darrell Kozuch

Assistant Vice President, Human Resources

University of Virginia

434.924.4348

djk8q@virginia.edu

Change

For most organizations, change is inevitable. Because of this, you'll most likely be involved in managing change at some point – be it a simple change to the way your team deals with payroll issues/complaints, or a major project to change organizational practices, policies or strategy.

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Change Management

is an approach to transitioning individuals, teams, and organizations to a desired future state

Change management is a systematic approach to dealing with change, both from the perspective of an organization and on the individual level

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Easy Definition

Change – is the situational process

Transition – is the psychological process people go through when dealing with change

Transformation – is the phase where people are fully adjusted to the reality of change 5

TransitionStages of Transition:

Ending – letting go of the old

Neutral Zone – between the ending and the new beginning

New Beginning – new status quo6

Change

Nothing

Changes

if Nothing Changes

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To successfully implement change initiatives, Payroll organizational leaders must identify the need for change and communicate it throughout the organization.

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What to Consider

For change to happen, it helps if the organization understands what is needed, what is changing and what is really wanted.

Convince people that change is necessary. This often takes strong leadership and visible support from key people within your organization. Managing change isn't enough – you have to lead it.

A clear vision can help everyone understand why you're asking them to do something…

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What to Consider

Your message will probably have strong competition from other day-to-day communications within the organization, so you need to communicate it frequently and powerfully, and embed it within everything that you do.

Nothing motivates people more than success. Give your organization a taste of victory early in the change process.

Communication

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How you manage change and how you communicate your payroll issues powerfully impacts your operation, your employees and your leadership team.

How to create an environment of good communication along with some strong change management techniques at your organization

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What We Will Cover

Who receives communication

What Do Employees Expect

Payroll Communication Strategies

Communicating Incorrect Payments

Tips for Written Communication

Communicating Forms

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The Purpose of communication is not to just convey information

but to change behavior.

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So what

needs to

change

How We Communicate

What do we really need to do?

Connect

Connect

CONNECT

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Who receives Communications Is the information correctly targeted to

the Audience? = Executives, Managers, Employees, Suppliers

Is everyone who needs information receiving it?

Do they know how to use what they receive? = Timeframe, WIIFM, behavior expected, how to provide feedback

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Recent Conference I Attended

Some examples of knowing the Audience.

NSF =

National Science Foundation

Circular A-21 =

Cost Accounting Standards

ONR =

Office of Naval Research

HHS =

Health & Human Service17

Many people search blindly for the “meaning of life”. What they don’t seem to understand is that life does not have meaning through mere existence or acquisition or fun. The meaning of life is inherent in connections we make to others through honor and obligation.

Author Unknown

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What to do differently with regard to communication? More communications (more frequent).

Begin communications sooner in the project.

More face-to-face communications – do you feel that you rely too heavily on email, not recognizing the importance of a personal approach.

More communication from executive sponsors and senior managers.

More about the impact of the change on employees – answering the questions how will this affect me and what is in it for me.

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Communicating Change

What is changing

Who is affected

What is the change

Why make the change

What is the impact

When is it effective

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What Do Employees Expect When We Communicate ?

CourtesyGreet enthusiastically

Personal AttentionUse their name

ReliabilityProvide what you promise, be accurate and

timely

ResponsivenessRespond promptly to needs and questions

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What Do Employees Expect When We Communicate ? Knowledgeable Staff

Project confidence in what you are doing

Train & Empower Staff

Know your organization’s procedures and policies

Empathy

Show you care and want to help- respond that you understand

If you have to say “no”

Explain Why

Offer Alternatives 22

Payroll Communication Strategies

Employee Orientations•Partner with HR•Videos

New Hire Package•Who to Contact •Payroll Deadlines•Pay Day Calendar•Sick Leave and Vacation

Staff Development Days 23

Payroll Communication Strategies

Newsletter

•Payroll Articles and Information

•Meet the Staff

•Meet an Employee

•FAQ24

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User Group Meetings Meeting Information

Next Meeting Date: May 14thLocation: Newcomb Hall: South Meeting RoomTime: 10 am AGENDA

Future Meeting Schedule: June 18th, Newcomb Hall: South Meeting Room August 20st, Newcomb Hall: South Meeting Room September 17th, Newcomb Hall: South Meeting Room October 15th, Newcomb Hall: Commonwealth Room November 19th, Newcomb Hall: South Meeting Room Meeting Minutes for 2010 January 28th February 18th March 18h Meeting Minutes Archive 26

Payroll Communication Strategies

Flyers

•Paycheck stuffers

•Post in Lounges, Break Room, Lunch Rooms

•E-Mail

•Web sites27

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Pay checks for the Month of March will be issued on March 31 (during Spring Break) and will be available for pick up in the Payroll Office which is located on the second floor of the administration building.

Checks will be distributed between the hours of 8:30 a.m. and 1:30 p.m.

Checks and pay stubs will be mailed on the 31st if not picked up by 1:30p.m. Direct deposit to your bank will be posted and available without change.

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US PAY YOUA reminder that due to the holidays, time cards for the November/December time period must be received in the payroll office no later than December 20th

We don’t want to be a Scrooge so remember!

Incomplete, unreadable, and incorrect timecards may be delayed in processing until the next pay-period.

E-mail

Subject: Your Chance to Get Your W-2 Sooner!

Get your W-2 sooner!  This year, the online W-2 will be available Jan. 16, 2015, two weeks earlier than the paper version.  If you don't elect to get your W-2 on line, your paper W-2 will not be mailed until Jan. 30, 2015.  

Online W-2s are...

·        Available sooner than paper W-2s

·        Better for the environment - less paper

·        Safe, secure, and approved by the IRS

It's easy to choose the online version, but UVA needs your help.  The IRS requires you to opt out of getting a paper W-2.  If you don't "say no" to the paper version, we are required to keep sending that to you.    For your rights and obligations regarding these requirements, please visit http://www.hr.virginia.edu/go/online-w2.

You can opt out of paper two ways: 

1. Follow the simple instructions at the end of this email to use Employee Self-Service to opt in to an electronic W-2.

OR

2. Reply to this email with the following statement:32

Payroll Communication Strategies

Create Incentives

Prize can be minimal. Employees will remember

being recognized Announce the winner in

your next newsletter.

Who wouldn’t want an additional payday……

Candy Bar!

Payroll Communication Strategies

Web-Site:

• Employee Forms

• Payroll Policies and Procedures

• IRS/SSA Information

• Taxable Benefits

• Who to Contact34

University of Virginia

Payroll Information

2015 Payroll Calendar HRMS/Payroll System Availability Calendars Time Management Form Example(PDF) Generic Time Management Form Direct Deposit Enrollment Form (PDF) Understanding U.Va. Pay Practices (Classified and University Staff) How to Prepare Pay Actions (In-Band Adjustments, Temporary Pay,

and Competitive Salary Offers) Employee Recognition Policy Special Pay Procedures: How to request special pay for a wage

employee. Procedures for Making Emergency (time sensitive) Payments to

International Visitors Procedure for Making Payroll Payments Via Foreign Wire Transfers 35

Understanding your Forms W-2 and 1042-SEach year, employees will receive a Form W-2 that provides details of prior year earnings, taxes withheld and other miscellaneous data (such as taxable cost of group term life insurance, cost of employer sponsored health coverage and contributions to retirement or tax deferred savings plans.)

Employees and/or students that are foreign nationals, will receive a Form 1042-S. A Form 1042-S is a year-end federal tax document given to a non-resident alien who received wages that were exempt from federal and state tax withholding by a tax treaty and/or received a non-qualified taxable scholarship. In certain instances, foreign nationals may receive both a W-2 Form AND a Form 1042-S for the same tax year.

Box 1: Wages, Tips, Other Compensation. This is your total taxable wages for federal income tax purposes. This figure includes your regular wages, bonuses, and any taxable fringe benefits (such as education benefits greater than $5,250), rewards and recognition, gifts, taxable moving expenses, as well as the taxable value of group-term life insurance in excess of $50,000 (see box 12, below). The amount in Box 1 will generally be the “YTD Gross” under the Summary section of your final payslip, minus any pre-tax deductions such as health/dental/vision insurance, flexible spending accounts and retirement and tax deferred savings plans, etc. The “YTD Gross” is the sum of the Year to Date (YTD) amounts under Hours and Earnings.

Box 2: Federal income tax withheld. This amount represents the total amount withheld from your paycheck for federal income taxes.

Box 3: Social Security Wages. This represents income subject to Social Security tax. There is a Social Security wage base each year and once you earn up to that amount, you no longer will have deductions for Social Security tax. Social Security wages are reduced by pre-tax deductions such as health/dental/vision insurances, parking and flex spending but not reduced by your contributions to a retirement plan (403b or 457.) The only applicable exceptions are University students working at the University while enrolled at least half time and attending classes, as well as nonresident alien employees visiting the U.S. for a limited period on F-1, J-1,

Communicating Incorrect Payments

Incorrect Payment Notification

Notify Employee ASAP about any issues that will affect their pay or benefits

• Talk with them personally and follow up with written notice

• Meet in a private area and have your calls held

Incorrect PaymentsDefuse Negative Emotions

Apologize sincerely if applicable

Don’t assert blame

Let employee know you are going to work with them for a solution

Respect Employee Situations

Incorrect PaymentsWork on a Solution Start at the beginning and don’t assume they

understand payroll processes.

Use understandable terms

Ask questions to make sure they understand

Involve the employee- what is their solution

Be flexible and fair

Incorrect PaymentsFollow Ups

Use a buddy system to check your corrections

Review the situation to prevent the problem from reoccurring.

Communication TipsDealing with Upset Employees In Person

•Focus the problem on a third point to take away from a personal level.

On the phone•Calm their breathing

•Say “you are right” between their breaths

• If they are not right say “I understand”

Sample Letters to Employees

Pay Adjustment Form

Overpayment Notification (Term Employee)

Overpayment-Action Letter (Term Employee)

Overpayment Agreement (Current Employee)

Formal Repayment Agreement

PAGES 5- 10PAGES 5- 10

Written Communications Tips

• ALWAYS spell the names of people and companies correctly

• Avoid slang words

• Try not to use abbreviations and symbols

• When using an acronym, always spell out first time used

(example: Fair Labor Standards Act (FLSA)

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Written Communication Tips

• Numbers should be expressed as words when the number is less than 10 or is used to start a sentence (ex: Two weeks ago, you were contacted…)

• The number 10, or anything greater than 10, should be expressed as a figure (ex: There are 12 pay cycles .)

• Quotation marks should be placed around any directly quoted speech or text and around titles of publications

• Keep sentences short48

Writing Effective Memos

Message Begin with one or two sentence summary of the main thought or message.

Details Add the specific reasons for the message and requested action

Evidence Include any supporting material that is essential

Action Clearly state what you want the employee to do.

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Writing Effective Memos

•Make the bottom line the top line. The action you want the reader to take should be spelled out in the first paragraph 

•Don't give too many whys. A reader can probably only absorb six or seven reasons at once

•Keep paragraphs short. Limit each paragraph to five lines or less 50

Communicating Forms

Inform employees of form changes

When possible use visuals

Pay Slip, Paychecks, W-2’s and W-4’s

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NOTE

Every interaction is an opportunity to “shine.”

You Choose

“ If you change the way you look at things, the things you look at change ”

Wayne Dyer

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Thank You For Thank You For

Attending!Attending!

© 2009, API Fund for Payroll Education, Inc., San Antonio, TX