From BLR's Best Practices in Compensation & Benefits
When Michelle Ganzer joined Briggs & Stratton Corporation as payroll manager
a few years ago, she didn't waste any time. She introduced herself to her
co-workers as a change manager, asking for their input into streamlining the
company's payroll processes.
Then, when the company won an American Payroll Association award for the efficiencies
they gained under her tutelage, she made sure the credit went where it should--to
the team.
Making sure you have the support of the team is critical to widespread change
in any department, Ganzer asserts. Although she wrote the award-winning application
for the APA's Prism Award in 2003, she says one thing is clear: "The
only way these things could happen is through your staff, your team. So I made
sure the company photographer took a picture of the entire department holding
the award, and that it was billed as department recognition."
Top tips for efficiency
That's just one of the tips for streamlining the payroll processes that
Ganzer has gleaned from her nearly 20 years of payroll experience. She shared
with us some of the others that she included in the APA application.
If you're looking to increase efficiency and reduce costs in payroll,
here are some of the tips offered by this seasoned professional.
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Utilize professional organizations and networks. "If you're
looking for other professionals who have gone through the same process,
or if you just want to bounce some ideas off people, the national APA has
a hotline and, of course, conferences."
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Use benchmarking. "Documenting the current process, benchmarking,
to me means sitting with each person in the department and asking how long
it takes to do each task. Determine if that task is really value-added,
and how the information is used. Ultimately, by summarizing what currently
happens, how much time it takes to do it, and how much it costs, you can
determine if current processes are really the best way. Chances are, people
who are doing the job can tell you right off the bat if there is a more
efficient and faster way of doing things. They think it, but they aren't
necessarily sharing it." So, ask them.
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Talk about change with customers and outsiders. "If the process
involves sending a file outside the company, or providing information or
receiving information from someone on the outside, survey them. Is there
a way we can handle this better? Do you use the information we provide you?
Maybe they don't even use it."
Direct deposit yields savings
Ganzer highly recommends automated payroll deposits because of the efficiencies--and
therefore cost savings--created by the process. She recommends checking
with the National Automated Clearinghouse Association for information. (See
the links at the end of this article.)
"Direct deposit costs less all around, for the employee and the employer,"
she says. "The transactions at the bank cost less; you don't have
to deal with stop payments if someone loses their check or has it stolen, and
you don't have to deal with unclaimed checks. For employees, the money
is in their accounts, in most states, even earlier than the check date because
a lot of the banks post it third shift. On holidays or vacations, they don't
have to worry about how they're getting their checks because the money
is already in their account.
And it can help employees save. "You can set up direct deposit into multiple
accounts, like a vacation savings account, a long-term savings account, and
checking. If you don't see the money, and you're only putting away
what's affordable to you, it may be easier to save."
Briggs & Stratton was able to close three bank accounts because of efficiencies
gained through benchmarking and the subsequent revising of processes. "These
accounts were really unnecessary; there were different ways things could be
done so as not to incur all the additional expenses of having them," says
Ganzer. Those expenses included account charges and the cost of the time people
in the payroll department took to reconcile accounts.
Changestreamlining of processes--is important, says Ganzer. However,
it's equally important to be sensitive to the people currently running
the show.
"When someone new comes into a department, they should be kind of careful,"
Ganzer says. "The way people are doing things, I'm sure they're
thinking that's the best way. Make sure you have the support of your team
and your management, and make it clear you're all working toward goals
for which the people on your team can be recognized. That's going to mean
you're able to keep making those changes to keep your department more efficient."
Links
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