Payroll Transformation
CHALLENGE
Our client recognized that their payroll process was inefficient and prohibitively manual. In addition, the payroll process required significant staffing levels and was prone to costly errors. Management recognized the need for an independent current state assessment with recommendations and a roadmap to achieve a cost-effective payroll operational model with a significant reduction in errors.
SOLUTION AND DELIVERY
Two GPC members collaborated to deliver a data driven assessment, which clearly highlighted strengths and areas for improvement.
Our assessment included the following:
- Interviewed key stakeholders from the finance, human resources and payroll departments to document current state observations
- Created process maps to Identify gaps and inefficiencies
- Documented system flows
- Performed a rigorous root cause analysis to identify pain points and create findings
- Categorized findings into common themes for people, process, technology
- Assessed current and future state operational model against industry best practices
- Developed initiatives and a roadmap to implement a future state payroll organization structure, process improvements and technology enhancements
The GPC team presented the client with a root cause analysis of current state pain points, and provided a roadmap to address the root causes and achieve the desired end state. Furthermore, the Clarendon Partners team highlighted low effort, high impact recommendations that the client could implement in the short-term to achieve immediate operational improvements.
IMPACT AND LASTING VALUE
The client is proceeding with the identified initiatives. The client has already realized some efficiencies and a reduction of errors within the payroll process. The client is leveraging existing functionality within their systems to reduce the number of manual processes and decrease the total time spent running payroll. At the completion of this transformation program, the client will realize $2 million in annual savings due to the change in their payroll organizational model, streamlined processes and system enhancements.