News & Research: Client Successes

Case Study: Outsourcing Human Resources and Payroll

ScottMadden worked with a shared services organization to implement a new HR and payroll system by outsourcing human resources administration, the benefits call center, and payroll operations to the selected vendor; redesigning future state processes; managing the testing phase; and designing the vendor management organization.

• The existing system was antiquated and no longer supported by the original vendor
• The system also lacked functionality, so the company had compensated by adding more than 50 key interfaced applications which further added complexity to system design
• Data integrity was poor, making data conversion difficult
• The HRIS and integrated applications supported three separate business units.  Each business unit operated under very different processes and policies that needed to be aligned prior to the close of business analysis and the launch of system configuration

• Managed the business analysis phase for the client and vendor
• Redesigned processes to align business units and system functionality
• Provided a recommendation that included outsourcing human resources and payroll
  
• Managed the project until it went to contract to ensure delivery of promised functionality
• Managed the testing process to ensure new system and processes functioned properly

• Expected realization of more than $6 million in annual, recurring savings
• Implemented a system of outsourcing human resources and payroll
  
• Drove diverse business units to common processes, single payroll platform and common data elements
• Facilitated agreement on common functionality that significantly reduced required customizations
• Significantly reduced number of integrated applications and related costs
• Significantly reduced administration and associated headcount