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Payroll Software & Technology - Trends and Challenges. Human - Straw Poll. Stand up if you use Self Service Remain standing if you produce e-payslips for your employees Remain standing if your absence or overtime is entered by the line / employee using self service

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human straw poll
Human - Straw Poll
  • Stand up if you use Self Service
  • Remain standing if you produce e-payslips for your employees
  • Remain standing if your absence or overtime is entered by the line / employee using self service
  • Remain standing if the line inputs leavers using self service
  • Remain standing if the line creates new starters using self service.
performance of hr payroll systems
Performance of HR / Payroll Systems

Do your HR / Payroll IT systems meet / exceed you current requirements?

Source - PMP

erp or best of breed

Highly Configurable

Costly to Develop

Costly to Maintain

Slow to Implement

No interface normally required

Payroll is not usually core business

Best of Breed

Functionally Rich

Specialist Knowledge

Cheaper Option

Quicker to implement

Usually requires interfaces

Payroll is usually core business

ERP or Best of Breed?
current it hr systems trends
Current IT HR Systems Trends
  • Browser Based
    • Web 2.0 E.g. Dot Net
  • Global Solutions
    • Rules based
    • Multi Currency
    • Multi Lingual
  • Self Service
  • Automated Workflow
  • Point in time reporting
  • Data Warehouse
browser based global solutions
Browser based Global Solutions
  • Connectivity over the intranet / internet.
    • Just starting to appear on the U.K. market.
    • Data can be viewed in any language / currency
    • Rules based
    • Highly configurable (like SAP / Oracle) give the option of paying all employees, irrespective of their geographical location from a single database
    • Can be designed to dovetail with your own payment strategy if required, but designed for global deployment
integrated solutions
Integrated Solutions
  • True integrated solutions
    • Have a single Database
    • Share common data which is entered and held only once
    • Usually capture data at source
    • Permit segregation of duties if this is required by the user
    • Allow all types of data (HR / absence / T&A / payroll) to be reported upon in a single report
uk hr directors say that
UK HR Directors say that -
  • By 2020 all transactional processes will be devolved to employees or the Line, or they will be out sourced
hr guru david ulrich says
HR guru - David Ulrich says
  • We must have HR innovators delivering innovate HR solutions
what should payroll practitioners do
What should Payroll Practitioners do?
  • Seize this opportunity
    • Accept you role will change
    • Focus on strategic issues that add value to your business
    • Take ownership of all HR / Payroll processes
    • Take ownership of HR/ Payroll systems and the data they contain


how can payroll add value
How can Payroll add Value?
  • Reduce process variation by:
    • Automating a task that was previously done manually.
    • Eliminating tasks that a customer would not be willing to pay for.
    • Eliminate tasks that does not subsequently change the output
  • Measure the ‘before’ and ‘after’ effect to quantify the improvement in numeric terms.
which of these tasks add value
Which of these tasks add value?
  • Input of Overtime in to the payroll from a paper claim form /spreadsheet / email.
  • Issuing a duplicate P60.
  • Keying in a new starter details personal details into the payroll system from a new starters form.
  • Keying in an employees sickness absence into the payroll system from a paper based / emailed absence return.
  • Issuing a manual payment to rectify an error with an employees pay.
  • Checking all payroll input prior to the payroll running.
  • Issuing a P45 for a leaver.
short to medium term
Short to Medium Term
  • Ensure the integrity, accuracy and completeness of all data
  • Strive to improve all HR / Payroll processes using intelligent workflow software
  • Make greater to use of Self Service
long term
Long Term
  • Combine data for reporting purposes between systems that feed and receive data from payroll.
  • Combine data for reporting purposes between payroll and other internal systems that report / indicate profitability.
  • Develop reporting strategies to monitor and measure Human Capital Management
what is needed
What is Needed?

Greater alignment between HR IT Systems and HR transactional processes. HR strategic goals and Human Capital Management






take ownership
Take Ownership
  • HR / Payroll data
    • To ensure accuracy and integrity and the data is used for the correct purpose.
  • HR / Payroll system
    • Align functionality and technical capability with HR strategy, business processes and requirements.
  • HR / Payroll transactional processes
    • Align with HR policies and procedures and sound accounting practices.
  • Think about how you can help the business
    • Design slick and automated IT solutions for HR transactional processes
    • Design slick processes that minimise WIP, errors and re-work
    • Provide management information to operational managers to enable them to make informed business decisions relating to their people
develop innovative solutions
Develop Innovative Solutions
  • True E-recruitment
    • Capture basic personal details, qualifications, previous work experience, competencies that feed HR / Payroll.
  • T&A interfaces - PDA’s / Phones
    • Monitor attendance
    • Capture hours lost / additional hours worked / premium hours
    • Absence, hours days lost
time attendance systems
Time & Attendance Systems
  • Traditionally used to capture absenteeism and overtime payments
    • Swipe cards
    • Phones / Blackberries or PDA’s
    • Develop by adding a rostering schedule to allow operational mangers to make more informed decisions.
    • Calculate ‘lost time’
    • Calculate average Absenteeism rate
consider interfacing or integrating these systems
Consider interfacing or integrating these systems
  • Fleet Systems
    • Company cars / vans
  • Benefits and Remuneration
    • Flexible Benefits
    • Expenses
    • Salary Sacrifice schemes
    • P11D’s
    • Non cash Incentive Payments (PSA’s)
detecting trends smart payroll systems
Detecting Trends – Smart Payroll Systems
  • Creating a payment profile for each employee
    • Alert you to abnormalities in the profile before payments are made.
    • Remind you when a payment usually due this period has not yet been processed
    • Search engines to make comparisons for benchmarking etc.
  • The reduction in errors and omissions = less re-work
use edi fbi
  • In year forms
    • P6’s, P9’s P45’s
    • Student loans
    • P46’s
    • P46(car)
  • Year end forms
    • P14’s, P35
    • P11d’s
consider automating
Consider Automating
  • PAYE settlement Agreements (PSA’s)
  • Independent Salary reviews using workflow
  • Third Party claims administration by identifying it as an individual absence category and recording the cost and the financial loss
use intelligent workflow as a task management tool
Use intelligent workflow as a task management tool
  • Manage your service delivery effectively
    • Monitor the amount of WIP in the process cycle at any point in time
    • Identify bottle necks in the process cycle
    • Escalate tasks that look like failing to meet a KPI’s
    • Use it as a tool to identify training needs
    • Use it for Benchmarking KPI’s
provide data driven business solutions
Provide - Data Driven Business Solutions
  • Comparing point in time data enables analysis and trends to be identified.
    • E.g. The relationship between overtime payments, absence levels and headcount levels
  • The data warehouse concept allows you to bring data together from different systems for analysis
    • E.g. How did the pay review in the sales department impact on sales targets?
    • E.g. How does the budget forecast from the accounting system compare against the actual spend in payroll?
devolve responsibility
Devolve Responsibility
  • Use ESS and MSS to help:
    • Define and document all your transactional processes
    • Build automated processes in the build up to gross with work flow tools
    • Embed the rules into the workflow to maintain an element of financial control
    • Relinquish control and empower employees and the Line
self service survey
Self Service Survey

Is you Company Implementing Self Service?

Source PMP

smart web based systems
Smart Web Based Systems
  • Makes delivering Self Service to the line and employee very easy
    • No internal /external communication considerations / issues.
    • 24/ 7 access anywhere anytime.
    • You decide what screens you do NOT want as self service.
    • The technology will enable intuitive forms to be created easily.
    • Any MS Word document or MS Excel spreadsheet can be published as a web page for completion of data on-line.
    • Rules built in will ensure that only the applicable fields are completed accurately and all mandatory data is completed.
employee self service
Employee Self Service
  • Consider devolving to employees
    • Updating their own Personal details
    • Updating their own Bank Details
    • Applying for Annual / Paternity / Maternity / Adoption leave
    • Submitting an Overtime claim
    • Submitting an Expenses claim
    • Ordering a new company car
    • Flexing Benefits
    • Viewing Payslips / P60’s and P11D’s
manager self service
Manager Self Service
  • Consider the Line for:
    • Recruitment
    • Recording sickness absence for their staff
    • Approving Leave Requests
    • Authorising O/T and Expenses claims
    • Measuring and monitoring they own performance in relation HCM
    • Creating new starter / leaver records.
    • Making changes to T&C’s and cost codes
examples of good use of workflow and b i tools
Examples of good use of Workflow and B.I. Tools
  • When asking the line manger to authorise leave show them who is also off in that department at the same time
  • When a line Manager is completing a sickness absence show them any non-attendance patterns / trends for that particular employee and or a Bradford factor score.
  • When asking an internal customer to ‘sign off’ the payroll show them this periods payroll costs compared against the same period last year
monitor measure
Monitor & Measure
  • The Rule Enforcer
    • Transactional processes in the build up to gross and BACS submission.
    • Minimise operational activity on all transactional processes.
    • The organisations PAYE liability is as low as it legitimately can be.
    • All HR policies and procedures are adhered to.
    • That PAYE compliance is adhered to.
consider creating an hr ssc
Consider creating an HR SSC
  • Do’s and don’ts
    • Don’ t necessarily need an ERP system
    • Do need clear and defined business processes
    • Do need a clear HR IT system strategy aligned to business processes
    • Do need clear definitions of roles and responsibilities
    • Do need segregation of specific duties to maintain financial control
benefits of hr ssc
Benefits of HR SSC
  • Benefits
    • Single location
    • Economies of scale
    • Specialisation
    • Alignment of HR / Payroll IT systems and Transactional processing strategy
    • Will reduce the risk of payroll alone being outsourced
in summary
In Summary
  • Your roles are changing
    • Smarter web based systems will allow more transactional processes to be devolved to the line or the employee.
    • Business will demand more information from HR / Payroll systems and other employee based systems to help them make informed decisions about their biggest cost (their people).
    • Data provided will need to accurate and up to date.
    • Financial control, PAYE compliance and data integrity must not be compromised