1. Payroll Optimization Diane Hirt – KivalaHR Sept. 12 - 2013

2. Diane Hirt - Bio Over 25 years in HR/Payroll process with 12 years in SAP HCM technical space leading support teams, lead large SAP HCM implementation which included design, build, test, change management, training, organizational design, process improvement, compliance, centralization of HR and Payroll operations. Started as a payroll clerk in 1987 for Interstate Bakeries Corporation. IBC acquired Hostess Bakeries in 1998 which increased the employee population by three times the current size. I lead the payroll acquisition team which started my career into IT and process improvement. In 2003 Hostess Bakeries chose to implement an ERP system SAP. For the next eight years I would lead the implementation of SAP HCM, creation of the IT production support department and moving a decentralized payroll department to a centralized Shared Service Center. Since 2011 I have been a consultant for Kivala-HR leading SAP payroll implementations including system, functional and operational aspects of the projects. Copyright Kivala-HR 2012 2

3. Are You Stuck in Day to Day Operations Mode? Copyright Kivala-HR 2012 3 New Hires Terms Transfers Payroll Processing Tax Ticket Resolution Garnishments Unbalanced Workload Excessive Overtime Firefighting Manual Processes I don’t know why but it works? Band-Aid Fixes Keying Payroll Policing Policy Turn Over

4. Automating and Simplifying the Workload Key Payroll Functions Copyright Kivala-HR 2012 4 Time Entry Absences Quotas Attendance Approvals Time Master Data Changes New Hire Terminations Transfers On cycle Processing Off Cycle Processing Audits Production New Orders Releases Processing Rules Reconciliation Answer Letters Interrogatories Garnishments Master Data Balancing Tax Laws Guidelines Tax 3 Way Match Reconciliation Posting GL Banking Files Accounting By examining each of these key functions, you identify opportunities for automation, upstream improvements, and enhancements. This can be accomplished through: Process Steps/Controls System Controls Threshold Audits or Balancing/Reconciliation

5. Maturity Cycle Copyright Kivala-HR 2013 5 Careful examination of each of these will help you move through the maturity cycle Uploads Intelligent Reporting Job Scheduling Uploads Intelligent Reporting Job Scheduling Create Audit Reports Standard Templates Reconciliation of Tax and Payroll Accounting Checklists Firefighting Paper Intensive Processes Long Processing Times Large Ticket Volume Excessive Headcount Band-Aid Fixes Centralize and Standardize Processes Drive Change Across Entire Organization Documentation of all processes (SWI – Standard Work Instructions) Effective Communications Team Building within Department Upstream Your Organization Harmonize the Organization Automate & Design System to Work for You Manual Processes Manual Audit Controls & Standard Processes MSS Forms Approval through Workflow Time approval Online Reports

6. Process Harmonization Copyright Kivala-HR 2012 6 As you move away from Manual processes toward harmonized rules and processes, all the “pieces” come together for a mature organization. The system is designed and automated to work for you through: Checklists Manager & Employee Self Service Uploads Intelligent Reporting Scheduled Jobs Audit Controls

7. Issue Resolution Copyright Kivala-HR 2012 7 An organization that is just maintaining a day to day operation as a main goal of Making the Employee Whole (pay is accurate) is missing the boat A mature service delivery model:  Uses audit procedures to proactively identify any possible issues  Institutes root cause analysis  Initiates a mitigation plan to make sure it will not happen again The ultimate goal of a mature service delivery model is streamlined processes that maximize accuracy and efficiency.

8. Mature Service Model Tools Copyright Kivala-HR 2012 8 Processing: production, tax balancing, garn & accounting/treasury Separation, new hire, transfer, International Assignment Quarterly tax balancing Yearend checklist Checklist $ No Net Pay No Pay Results Terms with Pay Claims hours in a day Review of retro Threshold Audit Reporting Portal entry Mass upload forms Interfaces Minimize Data Entry Cross Training System Training Team Building Succession Planning Training FIND THE TIME!

9. Process Optimization Steps Copyright Kivala-HR 2012 9 IdentifyValidateImplement

10. Think HCM. Think Kivala-HR Any Questions Diane Hirt VP HCM Business Process & Strategy diane.hirt@kivala-hr.com 785-214-2140