Benefits of automation of Payroll Systems: This analysis shows how to save costs to the tune of $150,000 per year using software such as EmpXtrack

1. Automating
the Payroll Function
and its ROI

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
Copyright 2013 | Saigun Technologies Pvt. Ltd.
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3. Elements of ROI
Data
Gathering
Processing
Disbursement
and Reporting
This is a report
This is a report
It contains some relevant
information. some relevant
It contains
information.
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Copyright 2013 | Saigun Technologies Pvt. Ltd.
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
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4. Sub-Process
General
Number of Full Time Employees (FTE) required
•
•
Data
Gathering
Processing
Disbursement
and Reporting
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 transactions processed
Cycle time for audit of payroll prior to disbursement
Number of manual checks disbursed
•
•
•
•
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.
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5. An Example
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
Copyright 2013 | Saigun Technologies Pvt. Ltd.
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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:
No need to print pay-slips:
Employees can view their pay-slips online and these are emailed automatically as well for their records.
Minimum payroll related queries post processing:
Allows the accounts/HR to complete many more important tasks.
Minimum impact when salaries change:
Update at a single place is reflected automatically. This avoids reprocessing of payroll.
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
Copyright 2013 | Saigun Technologies Pvt. Ltd.
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7. www.empxtrack.com
Thank You
Copyright 2013 | Saigun Technologies
Pvt. Ltd.