A boutique services firm, which managed a workforce of approximately 700 employees, spread over six countries.
The client had two completely independent systems for HR processes and Payroll processes. Both processes operated in a completely autonomous manner. The HR administration system was Microsoft Excel and Access based and the Payroll system was legacy software.
The lack of synergy between these two systems made the client organization prone costly errors. The entire process of manually adding a new hire/termination into the payroll system or making any changes in the employee compensation data was inefficient.
The client wanted to integrate both the systems using SAP ERP HCM Employee Administration to maintain a centralized source of accurate information.
SG Analytics' team helped gather information about the existing business processes of both the HR and the Payroll teams, which were quite diverse despite overlaps in their function. Then, the team consolidated all data from both sources into one master set of data which would be stored in a centralized location. The team encountered many data conflicts during the process of data cleaning, which needed to be manually investigated and resolved by the business team.
SG Analytics helped both departments with the integration into one set of consistent and efficient processes. We also set up an automatic integration with the existing finance system (SAP R/3 for Finance and Controlling) to streamline the payroll process.
The main advantage of implementing SAP as a centralized solution for both HR and Payroll systems was the reduction of errors related to double entries of employee data. Both teams now had access to accurate data all the time with a single data entry point. The new system also made the communication between the HR and Payroll teams seamless and allowed more accurate calculations of compensatory leaves, unpaid leaves etc.
Due to the integration with the finance system, the new centralized system also gave a quick overview of the company’s structure, with up-to-date information about the entire cost structure of the organization and employee-related costs.
SG Analytics helped the client to implement a centralized employee information storage and maintenance.
The integrated system increased the client's process efficiency significantly.