hr/payroll modernization update payroll coordinators spring 2014
TRANSCRIPT
HR/Payroll Modernization Update
Payroll Coordinators
Spring 2014
2
Agenda• Project Update• Timeline
o Full Projecto Next Six Months
• Key Staffing Updates• Overview of Biweekly Payroll• Questions
April 2014 Payroll Coordinators
Vision & Objectives of HR/PVisionHR/Payroll Modernization will deliver a modern system and set of standardized processes to significantly improve support for critical HR and payroll functions across the University.
Objectives• Replace UW’s existing payroll system with a modern,
integrated HR and payroll system
• Implement a technology platform that allows UW to outsource the infrastructure
• Implement standardized HR and payroll processes and practices across the entire University
• Reduce UW’s risks, realize efficiencies, enable modern practices, and provide better competitive positioning
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Progress to Date
Completed Business Process Redesign work
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Completed Procurement process
Received approval to proceed from Board of Regents and State CIO’s Office
Began implementation on March 3
Completed the seven-week planning phase
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Solution Vendor: Workday
April 2014 Payroll Coordinators
• Software-as-a-Service
• Core functionality delivered in 22 months (December 2015)
• Iterative approach to implementation
• Partnering with IBM for implementation
• Other higher-ed institutions using Workday include:o Browno Carnegie Mellono Cornello Georgetowno University of Southern California
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What is a Payroll System?A payroll system involves everything that has to do with the payment of employees.
• Calculating Wages• Withholding Taxes and Deductions• Print/Deliver Checks -or- Make Direct Deposits• Pay Employment Taxes
At year-end, the payroll system is used to summarize payroll information for tax and reporting purposes.
April 2014
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What is an HR System?An HR system is a tool used to store and access HR-related information and perform HR-related functions ranging from recruitment through separation or retirement.
• Job announcements• Compensation tasks• Onboarding of new employees• Position management• Time tracking• Leave tracking• Administering benefits
Such a system provides management of all employee information, allows reporting and analysis, and integrates with a payroll system.
April 2014
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Functional Scope for Phase 1
April 2014
PayrollHR
Talent Management (for Medical Centers)
Benefits AdministrationTime Tracking
Time
Absence Management
Compensation
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Scope for Phase 2Beginning approximately January 2017
• Applicant tracking system
• Learning management system
• Talent management for all UW units
April 2014
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Impacts All UW Workforce Members
• Staff, faculty, and student employees o Use a new interface to:
Access earning statements, leave balances, and time off requests View and change direct deposits and W2 withholdings Change personal information (contact info, benefits selections)
o Receive pay on a different schedule
• Managers and supervisorso Easily review employee scheduleso Approve time-off requestso Approve time sheets for overtime eligible employees
• Staff with HR/payroll processing responsibilitieso Some work will shift from one office to anothero New methods of accomplishing certain actions
April 2014
TIMELINE & NEXT STEPS
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HR/P Implementation Timeline
April 2014
Plan Design (Architect)
Configure &
Prototype
Test Deploy Post-Production
support
Operational Readiness
Organizational Change Management, Communications, Knowledge Transfer and End-User Training
Go-Live
March – April 2014
April – October
2014
Nov 2014 – May 2015
May – October
2015
Nov – Dec 2015
Jan-Feb 2016
Quality Management
Integrations
Data Conversion and Migration
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Snapshot: Next 6 MonthsActivity
21 28 5 12 19 26 2 9 16 23 30 7 14 21 28 4 11 18 25 1 8 15 22 29 6 13 20 27
Stage
Design Phase Kickoff
Architect Core Concepts
Business Process Design Sessions Initial Design Workshops Design Reviews
- HCM
- Academic Appointment
- Compensation
- HCM & ESS/MSS
- Time Tracking / Absence
- Payroll
- Benefits
Business Process Workshops - Detailed Design
Milestone: Bus. Process Workshops Complete (8/29)
Update Design Documents
Test Strategy & Scripts
Conduct HR/P Administrative Netw ork Meetings
Stakeholder Action Plan Stakeholder Action Plan
Deliverable: Stakeholder Action Plan (6/25)
Assess Change Impacts Chg Impact Plan Change Impacts
Conduct Role Analysis & Mapping Role Analysis & Mapping
Develop Change Readiness Report & Action Plan Chg Readiness Rpt
Design New Business Organization Structure Current Org Assessment New Org Design Roles to New Org
Realign HR Policy to New Design HR Policy Realignment
Define Training Strategy, Needs & Approach Training Strategy, Needs
Complete Initial Design of Integrations Integrations - Initial Design - Batch 1 - Batch 1
- Batch 2 - Batch 2
- Batch 3 - Batch 3
- Batch 4 - Batch 4
Complete Detailed Design of Integrations Integrations - Detailed DesignWorkday DA Checkpoint #2: Integration Design Review Ckpt #2
Conduct Report Design Sessions/Design Specs Report Reqts Report Design Sessions Report Design Specs
Extract, Transform & Load Data / Conv Plan Extract, Transform & Load Data Data Conv Plan WorkbooksDeliverable: Data Conv. Strategy, Plan, Policies (10/3)
Quality Management
- IBM Project Management Review
Project Management & Communications
Milestone: Architect Stage Complete (10/31)
DESIGN (ARCHITECT)
Aug (T-17) Sept (T-16) Oct (T-15)Jul (T-18)
Test Strategy & Scripts
Apr May (T-20) Jun (T-19)
Detailed Design Workshops
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Activity During the Next 6 Months
• Design workshops (May through September)
o System design decisions
oHR and payroll processes
o Integrations to unit systems
oReports
• Assess impactso Units and roles
o University policies
• Load additional data into new system
April 2014
HR/P TEAM STAFFING
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Functional Leads & Teams• Payroll: Ginny Montgomery
o Keli Bort, Payroll Functional Analyst
• Academic Personnel: Shirley Runkel• Benefits: Erin Roach
o Jon Petersen, Benefits Functional Analyst
• Compensation: Sherrie Thissell• HR: Alisha LaPlante• Time/Absence: Marisa Graudins
o Christa Woodhull, Time/Absence Functional Analysto Jean Swarm, Time/Absence Functional Analyst
April 2014
BIWEEKLY PAYROLL
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Payroll Situation• Problem: Existing semi-monthly pay cycle is required by state statute.
o Challenging to calculate overtime and premium pay for overtime eligible employees when a workweek is split between two periods (13x in 2013).
o Impacts scheduling and reconciliation of Fair Labor Standards Act (FLSA) workweeks with pay period payments.
o Creates confusion for employees, particularly those in healthcare whose schedules are based on work weeks, rather than semi-monthly periods with variable work days.
o Is inconsistent with best practices.
o Would require UW to customize or configure its new HR/payroll system to adhere to this statute, requiring additional and unnecessary costs.
• Solution: When HR/P goes live, we are moving to a biweekly pay cycle.o Legislation signed by Gov. Inslee in March 2014 allows us to move to the biweekly
cycle.
o Saves approximately $750,000 annually.
o Cost avoidance of $1.5 million to $3 million by implementing a biweekly pay cycle with new system.
April 2014
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Benefits of Biweekly Payroll CycleFor the University:• Standardizes and establishes a more systematic approach to payroll time reporting.• Standardizes pay practices across all UW locations.• Aligns with business and healthcare best practices.• Provides significant scheduling efficiencies for UW Medicine, which operates 24/7 and
whose employees comprise 30% of the UW workforce.• Reflects more efficient and effective time reporting.• Reduces administrative burden to manually prepare, review, and calculate pay.• Reduces payroll adjustments and overpayments, mitigating compliance risk.• Complements other elements of HR/P that will yield additional savings.
For employees:• Establishes a consistent pay period that contains the same number of days each time.• Paychecks are received 26 times per year (semi-monthly = 24 time annually).• Overtime pay will be more timely.• Biweekly pay frequency will have a standard 80 hours per pay cycle, resulting in a
consistent leave without pay hourly rate.• Alignment of pay cycles in two-week increments against schedule that reflects
coverage for the same period helps an employee to understand and verify worked and paid hours.
April 2014
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Next Steps• Conduct transition planning
o Build a plan for the final payroll runs in HEPPSo Create a new academic year schedule based on bi-weekly payroll
and the academic instructional calendar
• Assess change impacts to downstream systems• Review options to mitigate impact to UW
workforce• Develop a communications and outreach plan
April 2014
Questions?
http://f2.washington.edu/teams/hrp