and its ROI

Automating the Payroll Function

Copyright 2013 | Saigun Technologies Pvt. Ltd. 2

What will we look at?

How organizations are managing their human capital assets and the

challenges being faced

V/S

The best practices

The different metrics

and

How organizations can save costs in the payroll function

Elements of ROI

3 Copyright 2013 | Saigun Technologies Pvt. Ltd.

Data Gathering

Disbursement and Reporting

Processing

To understand the complexities involved in payroll processing and gaining deeper

insights into challenges being faced, we further

analyzed many other companies across multiple industry

verticals, different employee types (blue collared, white collared, management)

and found a median effort for each of the

sub-processes

This is a report It contains some relevant information. The quick brown fox jumps over the lazy dog. The quick brown fox jumps over the lazy dog. The qu ick brown fox jumps over the lazy dog. The quick brown fox jumps over the lazy dog. The quick brown fox jumps over the lazy dog.

This is a report It contains some relevant information. The quick brown fox jumps over the lazy dog. The quick brown fox jumps over the lazy dog. The qu ick brown fox jumps over the lazy dog. The quick brown fox jumps over the lazy dog. The quick brown fox jumps over the lazy dog.

• Number of Full Time Employees (FTE) required

• Number of payroll transactions processed • Cycle time for audit of payroll prior to disbursement • Number of manual checks disbursed

• Number of time records processed in one year • Number of Employee Validation Errors seen during the year for time records

which will require corrections and authorizations at multiple employee levels • Time for adding a new employee to the system with salary structures and all

other required data • Time for removing a terminated employee from the payroll system

• Number of payroll related queries • No of payment errors • Cycle time to process a payroll error • Time for creation of reports which are submitted on a monthly, quarterly,

half-yearly and annually per employee

Copyright 2013 | Saigun Technologies Pvt. Ltd. 4

Sub-Process

General

Data Gathering

Processing

Disbursement and Reporting

An Example

5 Copyright 2013 | Saigun Technologies Pvt. Ltd.

The example below refers to the results for a mid-sized organization with approximately 1,000 employees across multiple locations. The results are the total time spent in one year for

processing monthly payrolls.

Process Manual Payroll Best Practices

Number of FTE for managing the payroll process 3.48 employees 0.57 employees

Number of time records processed manually 43,500 5,200

Number of Employee Validation Errors seen during the year for time records

350 4

Time for removing a terminated employee from the payroll system.

3.5 days 1.5 hours

Number of payroll transactions processed 18,500 16,500

Number of payroll related queries 982 177

Number of manual checks disbursed. 50 or more 12 or lesser

No of payment errors 56 7

Cycle time to process a payroll error 7.5 hours 0.3 hour

Cycle time for audit of payroll prior to disbursement 230 hours 60 hours

Time for creation of reports which are submitted on a monthly, quarterly, half-yearly and annually per

employee 1050 hours 75 hours

Cost for Processing Payroll USD 190,750 USD 27,550

Minimum impact when salaries change: Update at a single place is reflected automatically. This avoids reprocessing of payroll.

No need to print pay-slips: Employees can view their pay-slips online and these are emailed automatically as well for their records.

Copyright 2013 | Saigun Technologies Pvt. Ltd. 6

Performance Based Targets

We further analyzed the intangible benefits (some of which had cost implications as well) of using our web-based software. Some of these are:

Minimum payroll related queries post processing: Allows the accounts/HR to complete many more important tasks.

Low impact when new employees are added: For example – for a multi-locational organization with distributed hiring, it becomes difficult to process payroll for new employees.

Minimum impact when employees quit

Automatic updates to tax tables when the need arises

Automatic updates to tax tables when the need arises

Archiving of Payroll data for statistical analysis in respect of different employee types

Thank You

Copyright 2013 | Saigun Technologies Pvt. Ltd.

www.empxtrack.com