Multi-process HRSourcing

Case Study: Leaving the Solution to the Experts

Telex Communications comes through loud and clear with ADPs enterprise HR system.

by Dede Frederick

Imagine going to the opera or a concert and not being able to hear the performance. Imagine airplane pilots on your flight not being able to speak with or listen to each other while at 20,000 feet in the air. Telex Communications, a leader in the professional audio equipment industry, develops the technology that makes these communications possible on a daily basis. Over the years, Telex has built a reputation for quality, performance, and reliability. Headquartered in Burnsville, Minnesota, Telex has three U.S. manufacturing facilities located in Minnesota, Arkansas, and Nebraska, and international facilities in Germany and the United Kingdom. Although a global leader in professional sound and communications solutions, as the year 2000 approached, we realized we were not Y2K compliant. We needed to change our systems and one of the areas we focused on was our payroll processeshow could we gain efficiencies and ramp up our solution to todays standards, simultaneously?


At the time, each of our manufacturing plants had multiple databases for employee information and each needed to stay on top of compliance and tax processes. Since a majority of the companys 1,000 employees are fulltime and hourly, this led to many instances of the same data existing in different places. We decided to start improving our HR processes by centralizing our data storage and reporting. This would also gain us compliance and IT maintenance advantages.


To rid ourselves of duplicate data files and outdated information, we reviewed our proprietary HR management system. Through this review, Telex realized that it had to balance the modifications with financial responsibility. Seeking to increase operational efficiency and add value to our entire payroll process, we decided to look at outsourcing. Through outsourcing, we hoped to eliminate the pressure on our staff to be up-to-date on the latest labor and tax law changes and regulations. At the same time, we wanted to centralize our practices and increase the productivity of our HR staff by alleviating the time and resources previously dedicated to task-driven processes.


As we set out to find a service provider, we searched for one that would be cost-effective, while offering a reliable system with a full range of easy-to-use functionality and a well-established support system. After looking at several vendors, we chose a recognized leader, ADP, and in particular, its Enterprise HR system. Moving to the ADP system allowed us to get all of our facilities onto one database. The integrated system increased accuracy by eliminating duplicate processes and by allowing the companys information to flow properly through the necessary channels. As a result, our disparate locations were able to see data changes in real time, not just the outcome after payroll had been processed without an opportunity to correct errors. In addition, we recognized considerable advantages by utilizing ADPs hosted services. Enterprise HR allowed us to ease the IT burden associated with maintaining an in-house system and build a state-of-the-art payroll, tax, and HR solution that we all could have confidence in. At the same time, our staff benefited from the embedded domain expertise in payroll and tax compliance that the system offered through seamlessly delivered updates. With ADP, we were better able to spend our time evaluating and streamlining core functions, while leaving the compliance and tax issues to the experts.


We also further decreased data inaccuracies by streamlining employee data entry through the functionality of ADPs self-service process. Our employees have taken on the responsibility for updating personal information, such as address, direct deposit allocations, and W-4 information, online. This enables our year-end processing tasks to run smoother for all parties. In addition, employees can also look up payroll and benefits information, freeing HR staff from answering these questions and allowing them to focus on more strategic business needs.


For Telex Communications, knowing that our products allow people improved communication capability is our first priority. When we looked at how to move our business forward, the company decided that payroll and HRO could help us to improve our back-office operations. Our challenge was to upgrade and centralize processes to enhance efficiencies, while increasing quality and consistency across the board. At the same time, we were hoping to relieve our compliance burden. We have been able to achieve these goals with ADPs payroll and HR solutions, and as a result, Telex Communications is better prepared for the future.  

Tags: Multi-Processed HR, Sourcing

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