Business Case

Executive Summary

Objective: The objective of the project is to reduce manual work in the UK payroll process by automating data transfer from the HR system HiBob to the payroll platform.

Expected Outcome: Streamlined payroll process with reduced manual input, fewer errors, and increased efficiency.

Problem Statement

Current Challenges: Our UK payroll is currently operated in a very manual way with information having to be pulled from different areas, manually input into a spreadsheet which is then sent to our payroll provider for review. The majority of the data is pulled from our HR system HiBob specifically around: starters, leavers, salary changes, unpaid leave, maternity/paternity, etc.

Need for Payroll Automation:

• High amount of manual work leading to inefficiencies.
• Increased risk of errors due to manual data entry.
• Time-consuming process that affects overall productivity.

Solution Overview

What is Payroll Automation: Payroll automation involves integrating HiBob, our HR system, with Pento, a payroll software company recently acquired by HiBob, to allow automated data transfer for payroll processing.

Types of Payroll Automation:

• Full Integration: All data from HiBob is transferred to Pento, reducing manual input to nearly zero.
• Partial Integration: Only critical data such as starters, leavers, and salary changes are transferred automatically, with other data like additional payments being input manually.

Benefits of Payroll Automation

• Efficiency: Significantly reduces the time spent on manual data entry and processing.
• Accuracy: Minimizes errors associated with manual data handling.
• Cost Savings: Reduces labor costs associated with manual payroll processing.
• Compliance: Ensures consistent and accurate data handling, aiding in compliance with payroll regulations.
• Scalability: Facilitates easy scaling of payroll operations as the organization grows.

Implementation Plan

Phase 1:

• Conduct a detailed analysis of the current payroll process.
• Identify all data points in HiBob that need to be integrated with Pento.
• Develop a project plan and timeline.

Phase 2:

• Configure HiBob and Pento for integration.
• Develop and test data transfer protocols.
• Train relevant staff on the new system and processes.

Phase 3:

• Roll out the integrated system in a pilot phase.
• Monitor performance and gather feedback.
• Make necessary adjustments based on feedback.

Phase 4:

• Full-scale implementation of the integrated payroll system.
• Continuous monitoring and optimization.

Cost Analysis

Initial Costs:

• Software integration and configuration fees.
• Training costs for payroll staff.
• Project management and consultancy fees.

Operational Costs:

• Subscription fees for Pento.
• Ongoing maintenance and support.

ROI Estimation:

• Reduced labor costs due to less manual input.
• Lower error correction costs.
• Increased payroll processing speed leading to higher productivity.

Risk Assessment

Technical Risks:

• Integration issues between HiBob and Pento.
• Data transfer errors during initial phase.

Mitigation Strategies:

• Conduct thorough testing before full-scale rollout.
• Have a dedicated support team for rapid troubleshooting.
• Regular audits to ensure data accuracy.

Alternatives Considered

• Manual Process Improvement: Streamlining the current manual process without full automation.
• Third-Party Payroll Services: Outsourcing payroll processing to a third-party service provider.
• Other Payroll Software: Evaluating other payroll software options for better integration.

Conclusion and Recommendations

Recommendation:

• Proceed with the integration of HiBob and Pento to automate the payroll process.
• This solution offers the best balance of efficiency, accuracy, and cost-effectiveness.

Next Steps:

• Approve the project plan and budget.
• Initiate Phase 1 of the implementation plan.
• Schedule regular progress reviews and updates.

Appendices

• Appendix A: Detailed Cost Breakdown
• Appendix B: Project Timeline
• Appendix C: Training Plan
• Appendix D: Risk Management Plan
• Appendix E: Integration Testing Protocols