Watch out for chnages in payroll policy landscape in coming years

Dan Pink on what motivates people to perform.

It is very clear what motivates employees in future. Whether it is current complicated structure of incentive or really motivation inducing intrinsic mechanisms.

Current payroll in infected by complicated incentives system . Resulting neither motivating employees nor allowing him to understand how much exactly he should expect in his bank account every month for next 12 months.

Current learning's by company during this recession time will make both employee and employer rethink what they want from their job. In turn changing complex nature of payroll for good........towards simpler zero to gross structure.

Customer Satisfaction: Car engine and vanilla Ice cream

This story is very true with Payroll. As much as the problem lay with territorial performances as much as it is with payroll efficiency . But, issues exhibits itself in payroll satisfaction. This becomes evident when we look at payroll process after receiving employee feedback. Look out for detailed root cause for better and sustainable model.My best bet is on asking at least 7 “Why?” to reach the root. remember the payroll rule "payroll is not a process but a symptom". General rule "Devil is in the Details"

A complaint was received by the Pontiac Division of General Motors:
"This is the second time I have written you, and I don't blame you for not answering me, because I kind of sounded crazy, but it is a fact that we have a tradition in our family of ice cream for dessert after dinner each night. But the kind of ice cream varies so, every night, after we've eaten, the whole family votes on which kind of ice cream we should have and I drive down to the store to get it. It's also a fact that I recently purchased a new Pontiac and since then my trips to the store have created a problem. You see, every time I buy vanilla ice cream, when I start back from the store my car won't start. If I get any other kind of ice cream, the car starts just fine. I want you to know I'm serious about this question, no matter how silly it sounds: 'What is there about a Pontiac that makes it not start when I get vanilla ice cream, and easy to start whenever I get any other kind?'"
The Pontiac President was understandably skeptical about the letter, but sent an engineer to check it out anyway. The latter was surprised to be greeted by a successful, obviously well educated man in a fine neighborhood. He had arranged to meet the man just after dinner time, so the two hopped into the car and drove to the ice cream store. It was vanilla ice cream that night and, sure enough, after they came back to the car, it wouldn't start.
The engineer returned for three more nights. The first night, the man got chocolate. The car started. The second night, he got strawberry. The car started. The third night he ordered vanilla. The car failed to start.
Now the engineer, being a logical man, refused to believe that this man's car was allergic to vanilla ice cream. He arranged, therefore, to continue his visits for as long as it took to solve the problem. And toward this end he began to take notes: he jotted down all sorts of data, time of day, type of gas used, time to drive back and forth, etc.
In a short time, he had a clue: the man took less time to buy vanilla than any other flavor. Why? The answer was in the layout of the store.
Vanilla, being the most popular flavor, was in a separate case at the front of the store for quick pickup. All the other flavors were kept in the back of the store at a different counter where it took considerably longer to find the flavor and get checked out.
Now the question for the engineer was why the car wouldn't start when it took less time. Once time became the problem -- not the vanilla ice cream -- the engineer quickly came up with the answer: vapor lock. It was happening every night, but the extra time taken to get the other flavors allowed the engine to cool down sufficiently to start. When the man got vanilla, the engine was still too hot for the vapor lock to dissipate.

Thank you!

Thanks you utilizing my blog and providing your feedback /inputs. It has been great journey. I am sure we will go long further from this point.

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20 minutes to meeting success!

During my past years of experience in meeting I have realized, any meeting will show its color within 20 minutes of its start. In other words after 1st 20 minutes you will know what you will end up by end of the meeting. In very effective meeting you will get the results, go-no go or bring people to common understanding or get agreement on agenda or what ever the result you expect, within 20 min.

Why this has to be 20 minutes I don’t know. I found no scientific answer to this question. Other than the below one …J

"Calendars are based on the earth’s motions: around its own axis, and around the sun in its orbit. But the axis has a slight wobble. In relation to the stars, the earth takes 365 days, six hours, nine minutes and 10 seconds to complete one revolution. This is the sidereal year. With respect to its orbit, the earth takes 365 days, five hours, 48 minutes and 46 seconds to complete one tropical year. This difference of 20 minutes and 24 seconds every year is caused by the earth’s wobble."

When I say you will get the result in 20 min…it is for sure not by magic but with lot of effort and preparedness:

1. Preparing sufficient research on the subject.
2. Ensuring you connect the participants to keep them ready for the meeting. No shockers thrown at them during the meeting.
3. Clear understanding of where we can hit the road block and what are win-win options.
4. Giving enough opportunity of the participants as well to do the above the 3.

Let me know if you have anything else as your learning.

Automation of variable payroll data logistics

One of the main issues in Payroll optimization is Variable Data, which doesn’t flow through the HR data base. This end up in …..Data flowing through multiple modes from multiple people in multiple formats.

Need of automation of data over and above HR data base may be due to:
1. Non localization of the HR databse
2. Payroll required data is not part of HR data base
3. Data originating from business
4. Time data

Some of simplest data automation I can see is using shared server folder which act as junction to combine data automatically. This will be a most cost effective solution especially with technologies like SharePoint.

Usage of much advanced web interface to source data originator along with interface with HR data base can be much more efficient but can be expensive.

Real payroll optimization is not complete without automating variable data logistic to the source of the data. Sometime there can be temptation to semi automate by pushing for unsustainable standardization with just complex data format set or cross subsidizing the effort of pulling the data by payroll team themselves.

Requirement gathering – Red zone area

Requirement gathering is one of most challenging and complicated part of any payroll project or Process improvement initiative.

The challenge stems from multiple perspectives:

1. Pre conceived notion of the process being complex.

2. Notional statutory ghosts.

3. Miscommunication of requirement.

4. Cultural issues in understanding & agreeing.

5. Confusion between understanding the requirement and agreeing to requirement.Misunderstanding the “I understand” with “I agree” or “I agree” with “I sign off” will lead to disastrous issues at very critical points in the project.

Tools to mitigate red zone:

1. Cultural diversities play a very important part in understanding this red zone.

2. Presence o functional knowledge

3. “Equidistance player” during requirement gathering.

Payroll workload & work ethics during recession policy executions

Recession and its impact of business bottom line will lead companies to make changes in its operating cost. Payroll cost will be the obvious the target for different business reasons.
This focus on payroll cost brings lot more stress on payroll work. In this situation it is very important to maintain few fundamental principals of payroll:
1. Never dilute the ownership on the input which will stay always outside payroll. This will ensures there is optimal level of ownership on movement of data and related employee experience.
2. Look very carefully at any new changes you plan to make into payroll process or payroll system with very legal perspective. I am not referring to statutory deduction or calculation. I am referring to how well these changes reflect in your lawyers fact file if an employee files a case in labor court.
a. Avoid out of pay slip calculation which will end up as single amount in pay slip.
b. Avoid short cuts in executing recession driven comp and Benefit policies.
c. Payroll is not a statutory expert ….contact your legal department on final decision.
d. Execution approach which works in one country may not work in another from future legal risk mitigation perspective. Be very mindful of this.
3. Crete at least 2 layers of checks and balance while processing these cases to avoid any over payment or underpayment. Both can lead to very bad press and or attention from regulatory bodies.
4. Never attempt any sort of short cut in calculation, execution or communication.