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Benchmarking and metric research has uncovered
the following trends and issues in payroll and workforce
management. Which ones match those of your organization?
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End State Visioning
Creating a vision for the future is never easy.
Stakeholders have competing interests, technology
infrastructure is often fragmented, and functional
needs seem endless. An
end-state vision must address the people, process
and technology aspects of a solution. Typically,
visioning is based on best
practices in payroll and workforce management,
which come from the extensive empirical evidence
collected in performance studies. In this way,
an organization can maximize
its efficiency and effectiveness upon realizing
its vision.
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Business Case Creation
Having a vision is one thing. Getting it approved is
another. The greatest of intentions still has to be
backed up by a compelling business case which proves
the long term financial benefits of an initiative.
Metrics for savings
(as well as costs) are based on
a financial model that includes costs for
- software
- hardware
- change management
- internal and external
- services
- telecommunications or hosting fees
- maintenance
- expenses
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Develop an Outsourcing Strategy
Cost, quality of service, compliance risk, globalization
and a host of other factors can play into decisions
around the composition of an organization's payroll
services. There is certainly no one-size-fits-all
solution. However, outsourcing has been and continues
to be a common trend for building a payroll organization
to meet the needs of large, complex organizations.
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Decrease Payroll Processing Costs
The first step is to confirm whether or not payroll
process costs are high, as compared to peers or the
entire industry. Benchmarking is an excellent way to accomplish this. Beyond this,
most organizations perform a basic investigation to
understand exactly where in the payroll taxonomy the
inefficiencies exist. Experience shows that the time
and attendance function is a key component of the
taxonomy, and significant cost savings (both soft
dollar and tangible) can be saved.
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Compliance
Wage and hour audits are on the rise, as are lawsuits
of that nature. Is your organization safe? The
recommended governance structure
focuses on
- informing through education
- automating through technology
- monitoring through internal audits
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Develop a Technology Strategy
Whether your organization operates on paper, or has
modern automated systems which are integrated with
one another, there are always questions around upgrades,
obsolescence and the viability of new functions. It
is clear that most organizations want to maximize the
use of their existing technology, while positioning
themselves well for any new solutions which are easier
to maintain and have a lower total cost of ownership.
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