PAYROLL BEST PRACTICES

1. PAYROLL BEST PRACTICES Second to None Practices for Today’s Leading Payroll Organizations Dr. Martin Armstrong, CPP, MBA, DBA

2. What Drives You?

4. Personal Vision Statement • What am I trying to achieve? • How am I going to achieve it? • Can progress be measured? • What’s in it for me?

5. Simple and

6. THE PERFECT PAYCHECK IS… • The Right Pay • At the Right Price • Delivered at the Right Time Lean Labor (2011), Gregg Gordon How can we accomplish this?

7. STRATEGYIf you don’t know where you’re going, any road will take you there….

8. Payroll Performance Demand Drivers

9. The APA’s Payroll Metrics Portal

10. 2012 Hackett Group Payroll Metrics

11. Cost of a Manual Paycheck Cost of a Manual Check @ $20 per hour: • Total Payroll Wage Expense $25.00* • Benefits & Taxes @ 35% $ 8.75 • Overnight Shipping $15.00 • Misc $10.00 • Total Cost per Manual Check $58.75 *Total Payroll Wage Expense Breakdown : Initial Request (15 mins) $5.00 Check Preparation (30 mins) $10.00 Accounting Costs (30 mins) $10.00

12. KEY PERFORMANCE INDICATORS Cost per Paycheck Cost per Off-Cycle Check Cost per Unclaimed Paycheck Cost of Overnight Delivery Expense Cost of Stop Payments Paperless Pay Distribution Rate Electronic Payroll Participation Rate STRATEGIC EXECUTION FOCUS Strategic Vision Corporate Objectives Critical Success Factors Key Performance Indicators Finance Customer People Processes Paperless PayrollPerformance Metrics

13. Workforce Management Optimization • Use empirical data to make business case decisions regarding: • The Forecasting of Overtime Expense for Unscheduled Absences • Substantiating Actual Time Calculation versus Rounding • Eliminating Manual T&A Calculation via Work & Pay Rules Functionality • Creating a Top 5 List of Labor Cost Reports for Executive Use • Sustaining or Changing Existing Interfaces, Application Integration Points, and Configuration of WFM system within our IT Environment • Creating Economies of Scale and/or Synergies that reduce administrative burdens and cost • Considering an Enterprise-Wide Automated Absence Management Solution

14. Workforce Management Best Practices • Maximize use of time collection devices • Consider overpayment constraints (CA, NY) • Use Hackett Group Metrics to measure efficiency • Total productive hours / FTEs • OT hours paid / productive hours paid • Gap between scheduled hours & actual • Cost for paying for meals & breaks not taken • Vacation hours paid per terminated employee • Overscheduled hours % of total hours

15. Where Does Innovation Come From? • Invention versus Innovation • Seeing Things Differently • Curiosity – What If? • Critical Thinking – Ask Questions • Characteristics of Great Innovators • Right Brain – Left Brain Balance • Questioning Conventional Wisdom • Vision • Problem Solving • Passion • Critical Thinking – Ask Questions • Products/Processes That Don’t Work

16. Critical Thinking • Habitually Inquisitive • Judge Credibility of the Source • Emotionally Intelligent • Open and Fair-Minded • Clear About Issues • Seeks Relevant Data • Prudent in Making Judgments • Remove Personal Biases • Ask Why • How can we check, test, verify? • What is the Point? • What Do You Mean? • Ask for an Example • How Does That Apply to This? • What are the Facts? • What Difference does it Make?

17. The Process

18. Applying Improvement Techniques • Eliminate Bureaucracy • Value Added • Eliminate Duplication • Simplification • Reduce Cycle Time • Automation • Training Tools

19. Finding the Process Pain Points • What Hurts? • What Hurts the Most? • Processes with Cross Functional Partners • Internal & External Manual Processes • Source of Errors (root cause analysis) • Expertise • Organization (desktop procedures) • Training • Auditing Techniques • Efficiencies • No Regret Moves • Stop Doing List • Standardized & Automated Processes

20. Plan To Win – Your Next Move

21. Payroll Best Practices Roadmap • Create a Vision • Identify Pain Points • Communicate Strategy • Prepare for Change • Pilot Solution • Implement Rollout • Measure for Results • Sustain Momentum

22. Time Warner CablePayroll Shared Services 2012 American Payroll Association Prism Award Winner for Overall Best Practices

23. 8 Secrets of Success by Richard St. John

24. Closing Thought For The Day “Ability is what you’re capable of doing. Motivation determines what you do. Attitude determines how well you do it.” • Lou Holtz

25. THANK YOU CONTACT INFORMATION Dr. Martin Armstrong – 704.731.1715 martin.armstrong@twcable.com