We count 5 of the top 30 European healthcare staffing firms as our clients. On an average, we process close to 750,000 timesheets every year. A majority of the timesheets are for temporary workers, and constantly evolving government regulations and filing requirements make this type of payroll processing one of the most complex and time-consuming.
Over the years, we have helped our clients transition from an in-house payroll process to outsourced payroll. A smooth transition is the foundation for the success of the outsourcing project and we have invested a lot of time and effort in designing a payroll transition process that works wonderfully. In fact, one of our team succeeded in transitioning a high-volume payroll process without visiting the client premises, through online migration.
So what’s the secret? What steps can you take to ensure smooth and swift payroll transition?
Well, it’s not magic – it’s adherence to a rigorous transition process, which is implemented by experienced transition managers. Here’s how our payroll transition management process works:
1. Identify the unique requirements
At the outset, our transition team works with the client to determine the volume of timesheets to be processed. We create a top-level documentation of the processes and systems that are in the use and assess the impact of any integration plans. We also analyse the client’s corporate culture, business model and unique requirements.
Thereafter, we work closely with the client’s team to define the processes that are to be outsourced and outline the client’s expectations. During this phase, our transition manager may visit the client premises if needed.
2. Finalise the Target Operating Model
Working with the client, we use the data gathered during the identification stage to determine the appropriate Day 1 Operating Model and agree to Day 1 process-scope. We define clear boundaries between the client’s operational units and the QX team working on the project. When necessary, we ensure that new processes are developed by QX and the client to function together seamlessly. At this stage, we also agree on the timelines for reporting business critical KPIs.
3. Detailed planning
Based on the understanding gleaned from the previous stages, and with further inputs from the clients, we create a detailed migration roadmap and plan, which includes the timeline, clarity in process aspects, and resource deployment and allocation. As per project requirements, we also create detailed plans on technology and infrastructure for a smooth and effective transition.
In case our clients are planning to upgrade to the next version of the software they are using, or are planning to implement new payroll software that offers additional functionalities, and want us to help, we define the objectives for it and create a roadmap to achieve them.
4. Implementing the transition
This is the most crucial step of the process. The approach we follow for implementing process transformation depends on the size and complexity of the project. Based on these factors, we may (i) adhere to existing processes and deliver as per agreed upon SLAs or, (ii) take over the processes and explore the scope for process redesign and transformation. We may also use a combination of all above approaches for different processes under the same project, if required.
Each process is well documented and any changes and revisions to agreed process are updated accordingly. We track the status of implementation and perform any course corrections that are required to make the processes more efficient. Along with information exchange on process knowhow, the project team is educated regarding software functionality, features and output.
We also establish standardisation for various processes, which can be implemented at the very beginning of the transition. This is followed by identifying further scope for improvements which is implemented during later stages. This leads to consistent improvements in efficiency and output for the ongoing process cycle.
5. Continual reviews and improvements
All process aspects are reviewed from the viewpoint of accurate delivery of tasks assigned to each process owner. By placing additional control checks, implementing automation where possible, and making quick fixes to the existing process and changes to internal control methods, we improve payroll accuracy. We ensure overall project governance efficiency in terms of quality and accuracy through regular reporting via operational dashboards, and through constant monitoring.
Are you planning to outsource your payroll function but dread the transition process? Our payroll transition experts would love to help you out.
Please write to us on email@example.com or speak with our expert, Kunal Shah, on 07584 651087.