100 per cent electronic payment distribution rate 100 per cent electronic payment distribution rate

100 per cent electronic payment distribution rate
22 Jan 2018

By Felicia Cheek

Why it’s important?

In most countries, local legislation determines how employees receive net pay; and for most countries it is electronic. Electronic payments not only increase productivity in payroll, it also ensures employees receive payments, regardless of other external events like weather and most other national disasters. What many companies struggle with is encouraging employees that receive electronic payments to also elect electronic distribution of payslips. Strategic implications

The level of turnover has a big impact on the importance of automation of the end-to-end termination process. High turnover is common in some industries and/or can be part of a company’s culture. Regardless of the reason, it will have an impact on organisational complexity impacting the payroll process. Add to that the fact that in some countries the termination process is legislative driven and time sensitive. Even when this process cannot be standardised on an enterprise level, it should be automated in all locations across the company.

human resources and other partners including operations, who generally are the rst to know an employee is leaving the company, bene ts, properties, security and other areas that must perform speci c activities when an employee terminates. The implementation of manager self-service and event triggered work ow technologies are key to success in this area.

Is the termination process at your company automated? What impact does it have on payroll errors, overpayments and other leakage? As payroll leaders continue to identify opportunities for improvement, the automation of the termination process is a good candidate. It is a major contributor to payroll errors and overpayments, often leading to routine manual processes and increased compliance risk.

By Felicia Cheek,

Global payroll advisory programme practice leader and senior business advisor at The Hackett Group

By Felicia Cheek

Why it’s important?

In most countries, local legislation determines how employees receive net pay; and for most countries it is electronic. Electronic payments not only increase productivity in payroll, it also ensures employees receive payments, regardless of other external events like weather and most other national disasters. What many companies struggle with is encouraging employees that receive electronic payments to also elect electronic distribution of payslips. Strategic implications

The level of turnover has a big impact on the importance of automation of the end-to-end termination process. High turnover is common in some industries and/or can be part of a company’s culture. Regardless of the reason, it will have an impact on organisational complexity impacting the payroll process. Add to that the fact that in some countries the termination process is legislative driven and time sensitive. Even when this process cannot be standardised on an enterprise level, it should be automated in all locations across the company.

human resources and other partners including operations, who generally are the rst to know an employee is leaving the company, bene ts, properties, security and other areas that must perform speci c activities when an employee terminates. The implementation of manager self-service and event triggered work ow technologies are key to success in this area.

Is the termination process at your company automated? What impact does it have on payroll errors, overpayments and other leakage? As payroll leaders continue to identify opportunities for improvement, the automation of the termination process is a good candidate. It is a major contributor to payroll errors and overpayments, often leading to routine manual processes and increased compliance risk.

By Felicia Cheek,

Global payroll advisory programme practice leader and senior business advisor at The Hackett Group