Creating an Automated Payroll Solution That’s More than Just Gross to Net

payrollWant to know if your HCM/Payroll application deployment was a success? Start with making sure your employees are being paid correctly. Staying on time or on budget is great, but it means little if your help desk lights up like a Christmas tree because paychecks are wrong.

Naturally, ensuring that you successfully design and configure your payroll groups, earning codes, deduction codes, taxes, payroll calculations, etc. is fundamental to a successful deployment. But the opportunities for Payroll to have a positive impact on your organization go beyond a bulletproof Gross to Net calculation.

There are few areas in any enterprise solution deployment — HCM or otherwise — that touch every employee like Payroll does. Many people see their paycheck as a direct reflection of their worth to an employer, and that affects how engaged they are in their jobs. Why is that important? Well, you could line the streets of New York with the number of studies and papers written about how employee engagement positively impacts employee productivity — and ultimately, company performance.

Tension is the enemy of engagement. Tensions over issues such as benefits, classifications, workplace policies and working conditions — as well as correct and timely payments — can cause employees to disengage or leave.

Don’t miss the opportunity to make your Payroll deployment an important contributor to your employees’ engagement. The deployment of a unified HCM/Payroll solution with strong self-service capabilities, like Workday, offers many opportunities to address this need.

Here are two ways to design your Payroll deployment so you create a more engaging experience for all your employees.

Paperless benefits for employees and administrators

We continue to see a significant shift toward paperless paychecks, online access to W2s and other self-service capabilities that empower employees and relieve your HR department of low value, time-intensive operational activities. It’s not much of a surprise. The benefits of a paperless solution go beyond cutting costs and being more eco-friendly. Imagine a world where:

  • You no longer have to print out and mail paycheck stubs because someone is applying for a mortgage.
  • Year-to-Date pay information and contributions-to-date for 401K, Social Security, taxes, etc. are a click away.
  • Vacation balances are visible on your online paycheck stub and no longer being requested through help desk tickets or phone calls.

All of this is possible when you move your employees to a paperless paycheck solution.

At the beginning of your deployment, take note of where you may have opportunities to continue the shift to a paperless self-service environment. Some states have different rules for opting in or out of a paperless paycheck, so pay attention to those nuances as you build your strategy.

Also take into account the potential need for kiosks or other access points if your workforce is not one with easy access to computers (such as in a retail environment). A solution like Workday offers great mobile capabilities, which will help alleviate issues with employee access.

Smoother processing

Couple the power of a paperless self-service world with the processing power and usability of a strong HCM/Payroll solution and your next positive area of impact is your HR/Payroll department itself. A usable solution will provide payroll processing structure (guardrails) and flexibility.

For example, Workday gives you the ability to easily do payroll adjustments and then run a recalculation on only an employee being impacted instead of an entire pay group. The HR/Payroll Department can use this newfound freedom to focus on other high value activities, like partnering with the director of compensation to roll out total reward statements.

Meeting everyone’s needs

A solution that gives people visibility and an appreciation for all the contributions a company makes on their behalf is one that will result in greater employee engagement. Put yourself in the shoes of the end users and those on the receiving end of paychecks to create a solution that meets everyone’s needs. These are just two examples and opportunities for your Payroll deployment to do more than just get the numbers right.

What questions do you have about HCM/Payroll deployments? Let us know in the comments section below and we’ll answer them in a future blog post!

Commercial Solutions Leader, IBM Workday Consulting Services

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