1. Personnel Cost Planning Martyn Peggie HR Information Systems Manager HR & Organisation Development e: martyn.peggie@stir.ac.ukmartyn.peggie@stir.ac.uk t: 01786 466157

2. University of Stirling Founded by Royal Charter in 1967 3 Campuses 11,500 Students 1,800 Staff Sunday Times Scottish University of the Year 2009/2010

3. University of Stirling A Research Lead Institution 85% of the Universities Research is Internationally Excellent (RAE 2008) Academic Themes: –Health and Wellbeing –Culture, Society and the Arts –Environment and People –Enterprise and the Economy –Sport Scotland’s University for Sporting Excellence

4. Stirling in 60 Seconds

5. SAP @ University of Stirling Implemented in April 2000 Currently on version 4.7 Used only for HR and Payroll Related Processes: –Personnel Admin –Payroll –Org Management –Training & Events Management –Recruitment –Manager’s Desktop –Personnel Cost Planning

6. Financial Background 2008 RAE performance Funding Letter – our strongest subjects are now amongst the least well funded Increase in staff salaries post framework agreement Increase in Pension Costs Increase in Utilities Costs Significant commitment to Capitol expenditure

7. Budget Process - Before Personnel Cost Planning Data Collection Org Assignment Personal Data Basic Pay Recurring Payments Additional Payments Contract data NI Code Pension Scheme Cost Distribution Data Preparation 1 Initial Manipulation of data Pension costs National Insurance Pay Award Incrementation Fixed Term Contracts Retirements Multiple Employment Know Leavers Know Joiners Maternity Data Preparation 2 Sorting and filtering data Preparation for presentation Initial Review Data Refresh + 4 Weeks +1 Week Data Refresh +2 Weeks Revise Budget Data Refresh +2 Weeks Data Refresh +2 Weeks

8. Issues Data Collection – changes to data during budget cycle Data Collection – Partial data collection Calculation Issues Calculation Errors Manipulation / Handling Errors Version Control Effort taken Length of Process Restricted to one year budget forecast Limited “what if?” analysis possibilities Not a Staff Planning Process just a budget process Limited opportunity for variance analysis

9. Solution - PCP Issues Data Collection – changes to data during budget cycle Data Collection – Partial data collection Calculation Issues Calculation Errors Manipulation / Handling Errors Version Control Effort taken Length of Process Restricted to one year budget forecast Limited “what if?” analysis possibilities Not a Staff Planning Process just a budget process Limited opportunity for variance analysis PCP Budget Cycle is shortened – less chance of changes Data Collection – OM data collected NI Calculated accurately Reduced risk of Calculation Error Reduced handling of data The same data basis is used by all Fewer man hours required Shortened process 3 years+ Budget forecasts Ability to manipulate some values at run time Moves us closer to a staff planning process Opportunities for detailed variance analysis

10. Gaps in Standard PCP Functionality Pay Awards Multiple reclassification dates Pension Changes Pension calculation with pay award or reclassification Pensions calculated on key dates Pension calculation for vacant positions Only collect data for positions in given employee groups True NI Calculation Multiple employment Wagetypes valuated against constants / in hours “Carry Forward” / ”Cut off” of Fixed Term Contracts “Out Turn” Reporting Payroll data – comparison on IN-period rather than FOR-period

11. Badi for data collection employee Data Collection Planning Run Reporting Planning Scenario Data selection Organizational Data HRP* HRP5010 Data selection method and valuation Z001 Employee Z002 Positions Z003 Reclassification Z004 Payroll (in-period) Employee data PA* PA0666 0001 Org assignment 0002Personal data 0008 Basic pay 0014 Recurring payments & deductions 0015Additional payments 0016Fix term contract 0027 Cost distribution 0069NI code 0071Pension Schema 0121 Priority personal number Base cost items 1000Basic Pay 1001 Re - NIable 1002 Re -NI/pension 1003 Additional 9SFA shift allowance Planning Context Badi for deriving and valuating dependant cost items Entered with qty hour/min PAW1-6 Pay awards 9N33ER NI contribution 8800-7ER pension contribution USS1Pension awards USS UPS1Pension awards USPS Dependant cost items Badi for data collection org unit Detail planning Plan data Positions only 1005Planned compensation 1013 Employee group 1015Cost planning PCP Design

12. Reporting Requirement Comparison of two planning runs Scenario Vs Scenario Budget Vs Actual payroll result 200920102011 Payroll actuals Forecast for remainder of year 2009201020112012

13. Implementation Timetable Initial Workshop Late November Configurations / DevelopmentDecember / early January Testing January First PCP Budget First week in Feb

14. Budget Process – with Personnel Cost Planning Data Preparation 2 Preparation for presentation +4 Hours Data Preparation Planning Scenario Planning Context + 0.5 Hours +2 Weeks

15. Lesson learned Identify gaps in standard SAP functionality Define Reporting Requirements Work on data quality – especially data held against positions. Make sure all data owners understand PCP

16. Next Steps Make better use of variance analysis Improve staff planning process Improve output formatting process

17. Questions?

18. Contact Details Martyn Peggie HR Information Systems Manager HR & Organisation Development, The University of Stirling e: martyn.peggie@stir.ac.ukmartyn.peggie@stir.ac.uk t: 01786 466157