HR/Payroll Modernization Update
Payroll Coordinators
Spring 2014
Agenda
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Project Update
Timeline
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Full Project
Next Six Months
Key Staffing Updates
Overview of Biweekly Payroll
Questions
April 2014
Payroll Coordinators
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Vision & Objectives of HR/P
Vision
HR/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
April 2014
Payroll Coordinators
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Progress to Date
Completed Business Process Redesign
work
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
April 2014
Payroll Coordinators
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Solution Vendor: Workday
• 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
o
o
o
o
April 2014
Brown
Carnegie Mellon
Cornell
Georgetown
University of Southern California
Payroll Coordinators
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What is a Payroll System?
A payroll system involves everything that has to do with the
payment of employees.
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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
Payroll Coordinators
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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
Payroll Coordinators
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Functional Scope for Phase 1
Time Tracking
Benefits Administration
HR Time
Payroll
Compensation
Talent Management
(for Medical Centers)
April 2014
Absence Management
Payroll Coordinators
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Scope for Phase 2
Beginning approximately January 2017
• Applicant tracking system
• Learning management system
• Talent management for all UW units
April 2014
Payroll Coordinators
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Impacts All UW Workforce Members
• Staff, faculty, and student employees
o Use a new interface to:
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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 supervisors
o Easily review employee schedules
o Approve time-off requests
o Approve time sheets for overtime eligible employees
• Staff with HR/payroll processing responsibilities
o Some work will shift from one office to another
o New methods of accomplishing certain actions
April 2014
Payroll Coordinators
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TIMELINE & NEXT STEPS
HR/P Implementation Timeline
March – April
2014
Plan
April –
October
2014
Nov 2014
– May
2015
Design
Configure
(Architect)
&
Prototype
May –
October
2015
Test
Nov –
Dec 2015
Deploy
Go-Live
Jan-Feb
2016
PostProduction
support
Data Conversion and Migration
Integrations
Quality Management
Organizational Change Management, Communications,
Knowledge Transfer and End-User Training
Operational Readiness
April 2014
Payroll Coordinators
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Snapshot: Next 6 Months
Apr
Activity
21
28
May ( T - 2 0 )
5
12
19
Jun ( T - 19 )
26
2
9
16
23
Jul ( T - 18 )
30
7
14
21
Aug ( T - 17 )
28
4
11
18
Sept ( T - 16 )
25
1
8
15
22
Oct ( T - 15 )
29
6
13
20
27
DESIGN (ARCHITECT)
Stage
Design Phase Kickoff
Architect Core Concepts
Business Process Design Sessions
Init ia l D e s ign Wo rk s ho ps
D e t a ile d D e s ign Wo rk s ho ps D e s ign R e v ie ws
- HCM
- Academ ic Appointm ent
- Com pensation
- HCM & ESS/MSS
- Tim e Tracking / Absence
- Payroll
- Benefits
Business Process Workshops - Detailed Design
Milestone: Bus. Process Workshops Com plete (8/29)
Update Design Docum ents
Test Strategy & Scripts
Test Strategy & Scripts
Conduct HR/P Adm inistrative Netw ork Meetings
Stakeholder Action Plan
Stakeholder Action Plan
Deliverable: Stakeholder Action Plan (6/25)
Assess Change Im pacts
Conduct Role Analysis & Mapping
Chg Impact Plan Change Impacts
Role Analysis & Mapping
Chg Readiness Rpt
New Org Design
HR Policy Realignment
Develop Change Readiness Report & Action Plan
Design New Business Organization Structure
Current Org Assessment
Realign HR Policy to New Design
Define Training Strategy, Needs & Approach
Training Strategy, Needs
Com plete Initial Design of Integrations
Integrations - Initial Design
- Batch 1
- Batch 1
- Batch 2
- Batch 2
- Batch 3
- Batch 3
- Batch 4
- Batch 4
Integrations - Detailed Design
Com plete Detailed Design of Integrations
Ckpt #2
Workday DA Checkpoint #2: Integration Design Review
Conduct Report Design Sessions/Design Specs
Extract, Transform & Load Data / Conv Plan
Roles to New Org
Report Reqts
Report Design Sessions
Extract, Transform & Load Data
Report Design Specs
Data Conv Plan
Workbooks
Deliverable: Data Conv. Strategy, Plan, Policies (10/3)
Quality Managem ent
- IBM Project Managem ent Review
Project Managem ent & Com m unications
Milestone: Architect Stage Com plete (10/31)
April 2014
Payroll Coordinators
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Activity During the Next 6 Months
• Design workshops (May through September)
o System design decisions
o HR and payroll processes
o Integrations to unit systems
o Reports
• Assess impacts
o Units and roles
o University policies
• Load additional data into new system
April 2014
Payroll Coordinators
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HR/P TEAM STAFFING
April 2014
Payroll Coordinators
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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 Analyst
o Jean Swarm, Time/Absence Functional Analyst
April 2014
Payroll Coordinators
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BIWEEKLY PAYROLL
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
Payroll Coordinators
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Benefits of Biweekly Payroll Cycle
For 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
Payroll Coordinators
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Next Steps
• Conduct transition planning
o Build a plan for the final payroll runs in HEPPS
o 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
Payroll Coordinators
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Questions?
http://f2.washington.edu/teams/hrp