Enabling Technology

It is unmistakable that the HR technology industry has been revolutionized. Cloud-based HR systems are now available from many of the largest vendors in the market. These systems integrate payroll, HRMS, talent management and analytics processing into a single cloud-based service. Many HR leaders are challenged with mobile tools and new social recruiting systems that are making many of the legacy HR systems obsolete.

The Top Payroll Deals of 2004

Who’s paying who to handle their payroll? The top deals of 2004.

by Denise Doig

HRO Todays annual list of the top enterprise-level and mid-market payroll deals as well as highlights from the APAs current research on the market.  < ?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />


Its payday, and whether you confirm your direct deposit account over the phone or online, wait on a long bank line to cash your check, use an ATM to retrieve your wages, or run into your local check-cashing site, you have been compensated in some fashion by your employer. With paperless payroll, pay cards, and even traditional printed checks, employees have numerous payroll optionsimportant not only to the employee, but also to the employer. Employers want to find new ways to enhance the payroll experience for everyone involved. And outsourcing enables employers to provide employees improved administrative support and the latest in payroll technology.


HRO Today conducted a month-long survey of companies providing payroll outsourcing services, approximately 65 in all, to find out the major payroll deals of the past year. We focused on mid-market and larger deals, and narrowed the results down to 26 contracts.


Listed are the usual suspects, such as ADP. But we also found some interesting activity amongst less well-known providers and across the waters in < ?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />Europe.


With all this activity, we also wanted to know how payroll has changed in the past year and where it is headed, so we contacted the American Payroll Association (APA) (see our interview with Andrew McDevitt, Manager of Government Relations, of the APA on page 19). Each September, the APA celebrates National Payroll Week with the publication of a survey of wage earners. This years results showed many employees have confidence in their employers payroll systems, paperless payroll is a desired function, and 401(k) plans are still extremely popular. The most interesting result was that 63.4 percent of the 22,500 respondents said they would prefer to invest part of their payroll taxes in private investment accounts, as opposed to the current social security plan. We at HRO Today, like all things HR related, are interested in how this will play out under the current administration. Were also interested in what trends and companies will be making a splash in the payroll market in the upcoming year, so stay tuned for more coverage in future issues.  

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To Outsource or not to Outsource?

Part two in a series on important HRO questions.

by Naomi Lee Bloom

In last months column, we began a series designed to help HR leaders assess the current state of their HRM outsourcing activities by laying the groundwork in HRM strategy and the related HRM domain model. With that foundation, lets continue our consideration of the current state of HRM outsourcing in our organizations. Here is a list of questions you should be trying to answer when deciding whether or not to outsource.

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What are we outsourcing now and to whom? HRM policy/ program design/administration? Litigation support? Software development? Systems integration? Hosted delivery of software? Individual or integrated HRM processes (BPO)? Dont forget: The use of consulting services or software packages are themselves outsourcing.


How satisfied are we with our current outsourcing arrangements and our providers? How confident are we of the continued viability of our providers? Are these arrangements achieving the business outcomes that were the impetus for entering into them? Are there any unpleasant surprises lurking just out of view?


What are the total life-cycle costs and expected benefits of each outsourcing arrangement? Have those benefits been realized? Have costs been exceeded or under run? (Dont forget the costs to enter into and manage those outsourcing relationships, as well as to integrate the results of those outsourcing relationships into our own HRM, HRM delivery system [HRMDS], and business modelsboth current and future states.) For any current outsourcing arrangements that arent delivering the expected benefits, what steps are we taking to bring these arrangements into compliance or to end them?


What other services do our current satisfactory providers offer that may be of interest? Have any of them expanded their services in areas where we now use a separate, perhaps unsatisfactory provider? Is it wise to continue using separate satisfactory providers in place of a more integrated offering from a single provider? Do we know what the potential benefits are of a more integrated approach? Do the benefits offset the risks?


At what point would an integrated approach move responsibility for the bulk of the HRMDS platform and much of the operating model to the provider? Is this an appropriate direction for us? Why or why not?


  What processes arent we outsourcing currently that could be candidates for outsourcing? Why are they presently being done in-house? What would need to change (in our business, thinking, culture, processes, systems, etc.) for us to consider outsourcing these additional processes? Would such changes help or hinder us in meeting business outcomes?


What processes do we consider off-limits for outsourcing? Why? What would need to change (in our business, thinking, culture, processes, systems, etc.) for us to consider outsourcing these processes? Would such changes help or hinder us in meeting business outcomes?


What are our true, fully-loaded enterprise-wide costs for conducting the HRM business? Have we included all of the time spent outside of the HR organization by those engaged in the HRM businesstime spent by managers to understand the practices involved, conduct, record, review, approve performance reviews and staffing interviews, and time spent by employees to understand the relevant business rules, apply for, and schedule vacation time? Have we included all of the conference fees and related travel expenses? Do we know which of these costs and related service levels are addressed by current or possible outsourcing arrangements?


What is the relationship between those costs and various surrogate measures of organizational activity, e.g., headcount metrics, organizational outcomes, and revenue metrics? What is the relationship between those costs and required HRM business outcomes? Would more or less outsourcing affect those costs in a positive way without adversely affecting quality, timeliness, or other important measures of process outcomes or our required business outcomes?


What are the decision criteria for when, how, to whom, and with what service level agreements to outsource each HRM process or multiple HRM processes? What are the criteria for shifting responsibility for the overall HRMDS to the provider? Who makes these decisions and are there any opportunities to influence them? Should we?


Stay tuned for a continuation of this list of questions for assessing the current state of your HRM outsourcing activities and planning for your future state.

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HR-XML Meeting April 11-12 Co-Located With NY HR Week

RALEIGH, N.C., Feb. 16 – HR-XML’s upcoming New York meeting, April 11-12, offers HR decision-makers a unique networking opportunity and unparalleled access to essential information on how cutting-edge, standards-based technology is shaping the future of HR solutions.

HR-XML’s meeting is part of NY HR Week, which also includes TecHR World, HRO World, the HRO/FAO Executive Summit, NY/HR Solutions Conference and the HROA Annual Meeting. Six compelling HR events in one location!

The HR-XML meeting includes education and working sessions for a range of HR-XML Consortium projects, including benefits enrollment, assessments, competencies, and indicative data for benefits and payroll outsourcing

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ACS Awarded $120 Million Human Resources Outsourcing Contract With Delta Air Lines

DALLAS, Feb. 14 /PRNewswire-FirstCall/ — Affiliated Computer Services, Inc., (NYSE: ACS – News), a premier provider of business process and information technology outsourcing solutions, announced today that it has been awarded a human resources (HR) business process outsourcing (BPO) contract with Delta Air Lines, the United States’ second-largest airline. The seven-year agreement is valued at $120 million.

Under the terms of the new HR outsourcing agreement, ACS will provide a broad range of human resource functions for Delta, including compensation and benefits administration, relocation services, recruiting, learning, payroll, HR Information Services, and employee call center services for Delta’s North American employees and retirees

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Nationwide(R) Signs Business Service Provider Agreement With Ultimate Software

WESTON, Fla., Feb. 8 /PRNewswire-FirstCall/ — Nationwide Mutual Insurance Company, one of the largest diversified insurance and financial services organizations in the world, has signed a business service provider agreement with The Ultimate Software Group, Inc. (Nasdaq: ULTI – News), a leading provider of Web-based payroll and workforce management solutions. The agreement, signed in December of 2004, grants Nationwide a non-exclusive license to use Ultimate Software’s UltiPro Workforce Management solution as a stand-alone or integrated offering for Nationwide customers

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Another Big HR BPO Win For Hewitt- Thomson

LINCOLNSHIRE, Ill. –(Business Wire)– Feb. 4, 2005 — Hewitt Associates (NYSE: HEW), a global human resources services firm, announced today it has signed a contract with The Thomson Corporation (NYSE: TOC; TSX: TOC), a global integrated information solutions provider, to provide HR business process outsourcing (BPO) services.

Under a five-year agreement, Hewitt will provide certain HR BPO services in the areas of benefits, compensation, payroll, learning and development and recruiting for Thomson’s 28,000 employees in the United States

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William Gallagher Associates and Genesys Partner to Deliver Best-In-Class HRO and Insurance Brokerage Solutions

Comprehensive Offerings Accelerate Revenue Growth and Offer Clients Flexibility and Choice

METHUEN, Mass. (January 31, 2005 ) – – Genesys, a provider of outsourcing services and software for human resources (HR) management, payroll, benefit administration and payments, self-service, learning, and performance management, and William Gallagher Associates (WGA), a leading provider of insurance brokerage, risk management and employee benefit services, today announced a strategic alliance to deliver best-in-class insurance brokerage and human resources outsourcing (HRO) solutions to customers

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Fidelity to handle HR for BASF

Fidelity Investments said Thursday that has won an outsourcing contract with BASF Corp. to handle that company’s human resources operations.

The five-year contract would have Fidelity conduct BASF’s payroll operations, health and welfare benefit programs and retirement plans for BASF’s nearly 20,000 U.S. employees and retirees. Financial terms of the contract were not disclosed.

Boston-based Fidelity touted the agreement reinforcing increased interest by major corporations to outsource their human resources operations to a single provider. The transition of BASF’s programs to Fidelity’s is expected to be complete by fall 2005, with most services being activate in early 2006.

BASF Corp., with headquarters in New Jersey, is the American affiliate of BASF AG, Ludwigshafen, Germany. It had sales of approximately $9 billion in 2003.

American Consolidated Media Selects Ultimate Software’s Intersourcing

WESTON, Fla., Jan. 25 /PRNewswire-FirstCall/ — Ultimate Software (Nasdaq: ULTI – News), a leading provider of Web-based payroll and workforce management solutions, announced today that American Consolidated Media, Inc. (ACM) has purchased UltiPro delivered through its hosted model, Intersourcing, on a per-employee-per-month pricing basis. The company made the choice in November 2004 and plans to go live on UltiPro by the end of January 2005.

A Dallas-based publisher of 34 community newspaper and shopper publications in Texas and Oklahoma, ACM found that the service bureau it had been using could not provide the strategic HR tools, management-level system access, or flexibility to maximize the productivity of its HR/payroll staff and position the company for growth

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Hewitt Associates Signs Rockwell Automation to a 15-Year HR Services Contract

LINCOLNSHIRE, Ill.–(BUSINESS WIRE)–Jan. 13, 2005–Hewitt Associates (NYSE:HEW), a global human resources services firm, announced today it has signed a 15-year contract with Rockwell Automation (NYSE:ROK) to provide HR business process outsourcing (BPO) services. Rockwell Automation provides industrial automation power, control and information solutions to global 500 corporations.

Under the agreement, Hewitt will provide workforce administration, payroll, health and welfare and defined benefit services to Rockwell Automation’s 15,000 U

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