Is it time to bring your HR payroll in-house?
HR and payroll services are something that many African businesses spend a lot of money on. Instead of hiring in-house payroll specialists and HR managers, many SME’s and large businesses outsource the entire function to a service provider.
SAP’s Human Capital Management solution allows companies to maximise their revenue by giving companies the tools they need to move their payroll function in-house with ease. Cameron International, a leading provider in flow equipment processes and services to the worldwide oil and gas industry, is an example of a company that has realised the benefits of moving their HR Payroll function in-house.
Cameron International has over 22 000 employees across 300 locations worldwide of which 40 of these locations are manufacturing plants. Similarly, many African businesses have employees working in remote locations across the continent, often making it difficult to keep track of not only currency and payroll differences across the workforce, but also legal remuneration differences in various regions. It’s not always easy to find the skills in-house to ensure that such a large workforce gets paid the right amount and on time.
Here’s what Cameron international did:
Barbara Williams, Senior Payroll Specialist at Cameron International, says that it’s her job to ensure that all employees are paid timely and accurately.
“It’s our job to ensure that our workers don’t have payroll issues. If they do, it distracts them from their job, which impacts production, which ultimately affects our customers and revenue,” explains Williams.
Moving to an integrated payroll platform was a crucial need in order to ensure that the right people were in the right place, doing the right jobs at Cameron International. The company decided to implement the payroll functionality within the SAP ERP Human Capital Management solution.
“The SAP Human Capital Management solution allows for full integration with our payroll activities as well as organisational maintenance and personnel actions. The results are obvious when you see how quickly a personnel action is processed by employees and then payroll is able to process the action as soon as it is completed by the employee,” says Williams.
Organisational maintenance made easy
Cameron International is also able to make personnel acquisitions more easily thanks to the SAP Human Capital Management solution. Recently, the company needed to relocate approximately 1000 employees.
“All of their details needed to be entered into their SAP record, including their addresses, bank details and salary amounts to bonus remuneration and benefits. We were able to complete the entire process within two weeks. We were able to process them through payroll thanks to their organisational and personal records being updated so quickly,” said Williams.
Cameron International was spending around USD$250 000 per year on paying an outsourced payroll solutions provider. By moving the payroll function back in-house, the company was able to use existing staff resources and save on the costs they were spending on an outsourced service provider.
Quick, effective solution
It took Cameron International approximately six months to move from paying an outsourced payroll service provider to getting the SAP Human Capital Management solution up and running internally, whereby they continue to save USD$250 000 per year in fixed costs and USD$80 000 per year in variable costs. Customer use case – Cameron International – video clip: http://bit.ly/10v6BHH
Want to find out if the SAP Human Capital Management solution would work for your African business?
More detail available on ur HCM webpage: http://bit.ly/1wkLTrb
For more information call us: SAP Africa – within SA: 0800 981334
SAP Africa (outside SA): +27 11 235 6045