Payroll/Time & Labor Remediation Project Overview
In June 2012 the City and its consultant partner CherryRoad Technologies, Inc. (CRT) kicked off the City’s premier ERP roadmap project – Payroll & Time and Labor Remediation. This project was focused on enhancing and improving how the existing PeopleSoft (PS) system works, specifically for timekeeping and processing payroll. The resulting improvements went live in two stages, in December 2012 and June 2013.
- Optimize business processes for payroll and timekeeping, to conform with best practices wherever practical and to configure PS to maximize its use to meet the City’s business needs.
- Enable the City to take full advantage of the payroll and timekeeping capability that is built into the PS system, some of which the City was not using.
- Improve the user experience for the City’s timekeepers and Central Payroll staff members. Improving the user experience includes eliminating outdated processes, such as physical production and distribution of paychecks and pay advices; improving administrative processes related to timekeeping; enrolling employees automatically into PS Time & Labor; standardizing entry and processing of sick leave; and remedying issues regarding the birthday compensation plan, other comp time, and other pay plan categories.
Areas Impacted By Project
- Payroll Processing
User Experience Improvements
- Eliminate outdated processes (i.e. physical distribution of pay advices)
- Improve timekeeping administrative processes
- Improve central payroll processes
- Facilitate automatic employee enrollment into PS T&L
- Standardize entry and processing of sick leave
- Remediate Birthday Compensation Plan
Return on Investment (ROI)
A primary purpose of the City’s ERP Program is to help make government more effective and efficient for the City’s constituent citizens. As such, we are gathering accurate, verifiable data to build metrics that measure the benefits derived from business process improvements. This measurement is an ongoing process, as efficiencies are gained over time from user mastery of the project enhancements and continual configuration improvements. We have estimated several initial benefits from this project’s deployment.
Immediate labor redeployment and direct cost savings accruing from this project total approximately $615,000. These benefits include timekeeping efficiencies, payroll processing time reduction, and savings from elimination of paper paycheck and pay advice distribution. Based on consulting fees of approximately $1 million, the annual perpetual ROI is over 60%.
Further, this project sets the stage for City-wide roll-out of employee self-service timekeeping. Completion of this initiative, to be completed in the 2013-2014 fiscal year, will likely result in even more significant annual savings from the redeployment of staff currently focused on timekeeping to other value-added tasks.