Plans and Recommendations for implementing Payroll Best Practices and increasing

Payroll´s role in the organization

NutriGrow currently has an employee headcount of 600 plant and 125 management employees.
The organization is expecting considerable growth. In order to accommodate the increased
employee headcount, the department must take steps to become a high-performance team. As
previously discussed in our meeting and requested by you, I have prepared a report that will
examine the current issues, stakeholders, resources, alternate solutions, and a recommended
plan of action to help lead the team to greater success.

Background

NutriGrow is an expanding agricultural supplies manufacturer located in Manitoba. The

business has been operating for 60 years now but has historically experienced slow growth over
the years. It was only in the past four years that business began to pick up with the introduction
of a new product that was successfully marketed to large agri-businesses. This new product is
now selling internationally so rapid growth is expected over the next decade.

Along with this expected growth, the company is currently going through a reorganization which
directly impacts the payroll department. Reporting to the Vice President of Human Resources,
a new Payroll Manager was hired to help bring about change and improvement in the payroll
department.

Identified Issues
NutriGrow is a unionized company that is working towards international success in the coming
years. As a new payroll manager for the company, I have come to recognize some
shortcomings in the payroll department that can be improved upon to transform us into a high-
performance team.

The main issues that deserve highest priority and must be addressed immediately are the lack
of documented payroll processes and procedures, inefficient time and attendance system, the
outdated and time-consuming method of payment for employees and non-existent payroll
continuity plan.

Analysis of the Data

Internal Stakeholders

The internal stakeholders are the Payroll Department, consisting of the Payroll Manager and
two Payroll Administrators. Other internal stakeholders include NutriGrow Management, IT
personnel, HR and Controllers Department and a staff of 600 plant employees and 125
management employees.

External Stakeholders

The identified external stakeholders of NutriGrow are Canada Revenue Agency, Service
Canada, benefit providers, Unifor, banks and various suppliers.

1
This study source was downloaded by 100000855112312 from CourseHero.com on 03-14-2023 19:34:06 GMT -05:00

https://www.coursehero.com/file/61663919/NutriGrow-Case-Studydocx/
 Available Resources

The resources that NutriGrow currently has available to make the changes possible are: the
support of the Vice-President of Human Resources to transform payroll into a high-performance
team, the support of the Controllers Department and their previous knowledge of the payroll
team that had been reporting to them for years already. We additionally have retained a
knowledgeable payroll department who are ready to take on changes for the better. The IT
department knows the current system and can help support the implementation of any new
payroll software. Moreover, we can access the established Payroll best practices published by
the Canadian Payroll Association and the data available in the current payroll system.

Required Resources

The required resources are benchmarking payroll processes and procedures, budget to train the
payroll Administrator who is not PCP certified, union support to implement changes and
implementation of a new integrated Payroll/HRIS system.

GAP Analysis

For the purposes of identifying missing processes, practices, and capabilities, a GAP analysis
has been prepared to compare our current state vs. the intended state that needs to be
accomplished in order to become a high-performance team (see chart on the next page).

Based on the results of our GAP analysis, we can conclude that the application of
benchmarking in order to implement payroll best practices is vital to the success of the
organization and will assist us in becoming high performance team. Also, ensuring that the
complete payroll team is PCP certified is going to be very beneficial to the team and the
organization.

When looking at all the changes that we wish to implement, it is extremely important that we
gain management support right from the kick-off of our project, as well as support from Unifor.
Support from these teams will assist us with a healthy and successful implementation.

Benchmarking with Best Practices

Payroll’s focus for the next twelve months would be to begin transforming the department into a
high-performance team. This can be achieved by benchmarking our current processes against
established best practices

Below are the best practices that NutriGrow can adopt.

Current payroll processes and procedures

NutriGrow does not have a documentation of its payroll processes and procedures.

Best Practices that we can adopt:

 Create a payroll manual of processes and procedures that is able to answer questions
such as who does what, when and how they do it, why do they do it and for whom do

2
This study source was downloaded by 100000855112312 from CourseHero.com on 03-14-2023 19:34:06 GMT -05:00

https://www.coursehero.com/file/61663919/NutriGrow-Case-Studydocx/
 they do it. This can serve as a good training tool for new staff. It should be stored in a
shared payroll drive and updated as needed.

 Make sure all policies and procedures in accordance with the payroll schedules and
deadlines are distributed to concerned departments at the beginning of the year and
should be strictly followed.

 Produce an annual payroll calendar before the end of the current year that has
information on pay period range, pay dates, statutory holidays and shutdown dates (if
any). A separate list of Statutory holidays should also be prepared. These two reports
should then be made available to employees by posting through Intranet or transmitting
electronically/mail along with the last pay statements of the current year.

 Prepare an annual remittances schedule to avoid missing due dates. For payroll source
deductions, it is best to schedule payment one day ahead of the due date and pre-set it
online so that it is automatically paid on specified date.

 Provide a consistent understanding of duties and responsibilities by creating job

descriptions for the payroll team. This can also help each team member to create goals
for job advancement.

 Practice job cross-training among the team in order for each one to understand the
whole payroll process so that the department can normally function in the event that one
team member is not available to work.

 Introduce electronic filing to save time, paper and printing resources by saving all
pertinent payroll information in one folder of the shared payroll drive or better scan and
save in the payroll system itself.

Current time reporting systems, and potential efficiencies

Plant employees record their working hours on paper timecards. Supervisors complete any
absence reporting, approve timecards and submit them to Payroll. Payroll staff review and
manually input timecards into the payroll system. Management employees submit paper
timecards only when they are reporting any exceptions to regular time.

Best Practices that we can adopt:

 Use tablets or time clocks to track attendance.

 Utilize an electronic time and attendance system that uses swiping or badge scanning to
record employee hours that can be automatically uploaded to the payroll system.

 On top of this, various reports like overtime, absences, vacation, tardiness, etc. can be
pulled at any given time.

 Record, review and edit timesheets regularly to keep up with deadlines.

3
This study source was downloaded by 100000855112312 from CourseHero.com on 03-14-2023 19:34:06 GMT -05:00

https://www.coursehero.com/file/61663919/NutriGrow-Case-Studydocx/
 Current payroll system and potential changes

NutriGrow is using an in-house legacy system that was implemented in 1992. It has been well
maintained and updated by the internal IT staff when required. It has limited reporting
capabilities that can only produce monthly reports on overtime, sick leave and vacation
absences. As the business is continuously growing, managers are requesting information on job
costing which the system cannot provide. More so, employees are still paid by cheque.

Best Practices that we can adopt:

 All employees are set up with electronic self-service registration information to retrieve
their own pay statements and T4s.
 All payroll reports such as headcount, earnings, benefits, deductions, vacation, etc. that
are needed by management can be extracted from the payroll system.
 Payroll entries from the system can be easily uploaded to the Accounting GL system.
 Outsourcing payroll.
 Use of off-the-shelf payroll software.

Current Disconnect between Payroll and HRIS

At NutriGrow, employee Human Resource information, including benefits, is captured on a

separate HRIS system.

Best Practice that we can adopt:

Payroll and HRIS should be integrated into one system. As payroll and HR share a lot of the
same data, it makes more sense for organizations to combine these two technologies into one
single automated solution. This increases efficiency, payroll compliance and allows better and
faster reporting capabilities.

Payroll´s role in the Organization

Current role

The payroll team at NutriGrow is currently comprised of one payroll manager and two payroll
administrators whose main responsibilities are:

 Collecting each employee’s time cards.

 Manually input the hours into the payroll system.
 Process bi-weekly payroll for 725 employees.
 Submit third party remittances on-time.
 Resolve employee issues related to payroll.
 Compliance with Unifor collective agreement.

Opportunities for expansion

4
This study source was downloaded by 100000855112312 from CourseHero.com on 03-14-2023 19:34:06 GMT -05:00

https://www.coursehero.com/file/61663919/NutriGrow-Case-Studydocx/
  Transform payroll into a high-performance team.
 Increase payroll´s role in the organization as a source of information for other
departments.
 Provide reports to management and engage in business-oriented conversations to aid in
making strategic decisions.
 Determine if Payroll and HR are in compliance with Legislation and continually monitor
legislation changes affecting the company.
 Clearly define payroll staff roles and responsibilities.
 Develop a compensation strategy by looking at market data for the geographical
location. This will provide insight on whether or not NutriGrow’s employees are being
paid competitively and to lower the chance for turnover.
 Spearhead the development of a payroll continuity plan.
 Participate in administering employee/retirement benefits since payroll is now under HR.
 Ensure on-time remittances to third parties (CRA, Benefit providers, etc.).
 Participate as a member of the resource committee, for the Unifor’s collective agreement
renewal.

Alternatives for current payroll processes and procedures

The first option is to maintain the current processes and procedures without changes until a new
HRIS/Payroll system is implemented. If this option is chosen, the payroll role with the
organization will not increase.

The second option is to document current processes and procedures by following best practices
from the benchmarking research. Although this is a huge project, it will be worth it to have a
payroll manual that can be used for the training process and as part of the payroll continuity
plan. This option will increase the payroll´s role in the organization.

Alternatives for current time reporting system, and potential efficiencies

The first option is to improve efficiencies of the current reporting system by implementing a
document-tracking system to make the process smoother for supervisors and payroll staff.

The second option will be to look for a time clock that would connect to the legacy payroll
system in order to streamline the process.

Both options are short-term alternatives until the new system is implemented. Additionally, both
options will add value to payroll´s role in the organization.

Alternatives for payroll system and potential changes including the disconnect between
Payroll and Human Resources information

The first option with a short-term goal, is to meet with the IT department to assess possible
improvements to current in-house system. As they have been maintaining the system since
1992, they might be able to find ways to improve its capabilities to write reports. Additionally,
one of the Payroll Administrators can be the administrator of both Payroll and HRIS systems to
make sure information is accurate and updated.

The second option, more of a long-term goal, is to have the Payroll Manager prepare a
statement of requirements for a new integrated HR/Payroll system and start interviewing
vendors, preparing a budget and an implementation plan.

5
This study source was downloaded by 100000855112312 from CourseHero.com on 03-14-2023 19:34:06 GMT -05:00

https://www.coursehero.com/file/61663919/NutriGrow-Case-Studydocx/
 Recommended Action Plan

After analyzing the alternatives, please find below our recommendations for potential
accomplishments divided into a short-term and long-term action plan.

Short Term (within twelve months) potential accomplishments

 Development of a Payroll Manual that documents all processes and procedures.

o This will be stored in a shared drive with limited access to Payroll/HR employees.
o The Payroll Manual will become part of the mandatory training for all new payroll
employees.

 Creation of an annual payroll calendar.

o This will be made available prior to the end of the current year.
o The annual payroll calendar contains information on pay period ranges, pay dates,
statutory holidays and office shutdowns.
o A separate list of statutory holidays is also provided.
o These two reports will then be attached to the last pay statements of the year and
are sent electronically or through mail. This will also be published on the Intranet for
all employees to find at-a-glance.

 Creation of a yearly remittances schedule to ensure source deductions are balanced and
paid on time.

 Creation of a procedure for manual payment.

o This includes check signing authorization, entry into the payroll system for correct
YTD amounts, and established timelines.

 Creation of electronic employee files.

o All payroll documents including forms and completed hiring documents should be
saved in the same shared drive. Hard copies of employee benefit forms to be filed in
the locked cabinet located in the payroll department office.

 Creation of a communications plan that details the early payroll cut-offs for short processing
weeks.

 Development of guidelines and timelines for payroll-related expense reimbursements

processed through payroll.
o Implementation of DocuSign or another type of document-tracking system would
make the process smoother for supervisors and payroll staff.

 Investigation of alternatives for current time reporting system.

 Investigation of options for a time capture system that may connect to the legacy payroll
system.
o This would streamline the process prior to the implementation of a new payroll
system

6
This study source was downloaded by 100000855112312 from CourseHero.com on 03-14-2023 19:34:06 GMT -05:00

https://www.coursehero.com/file/61663919/NutriGrow-Case-Studydocx/
  Development of a detailed payroll continuity plan based on CPA’s benchmark guidelines.

Long-Term (greater than twelve months) potential accomplishments

 Preparation of a statement of requirements for a new integrated HR/Payroll system that

includes a Time and Attendance module.
o To be done by the Payroll Manager

 Development of a budget for the acquisition of the new HR/Payroll system.

 Appointment of a project manager and develop an implementation plan for the new
HR/Payroll system.

 Continuous benchmarking to lead high-performance practices in the organization.

Additionally, please also find the recommended action plan for the expanding of the payroll´s
role in the organization with timelines

Short Term (within twelve months) recommended Plan for Expanding Payroll’s Role in the
Organization

 Transform payroll into a high-performance team by setting individual goals with each payroll
staff member.
 Update payroll staff´s job description to ensure staff roles and responsibilities are clearly
defined.
 Enroll the Payroll Administrator who is not certified in the PCP program through Canadian
Payroll Association.
 Audit the current payroll process and procedures to ensure compliance with legislation.
 Ensure current payroll and HR systems are updated at the same time to have accurate
employee´s information.
 Liaise with departments to ensure deadlines are met and ensure compliance with payroll
policies and procedures.
 Assist management teams by providing reports for job costing, attendance, etc.
 Work closely with Uniform steward to make sure compliance with collective agreement.
 Continually monitor changes in legislation affecting NutriGrow.
 Spearhead the development of a payroll continuity plan.
 Streamlining processes with other departments and develop relationships with management
teams.
 Collaborate with departments in the preparation of budgets.
 Ensure on-time remittances to third parties (CRA, Benefit providers, etc.).

Long Term (within twelve months) recommended Plan for Expanding Payroll’s Role in the
Organization

 Develop a compensation strategy for NutriGrow employees

 Administer employee benefits
 Participate as a member of the resource committee to analyze proposals for the collective
agreement renewal.

7
This study source was downloaded by 100000855112312 from CourseHero.com on 03-14-2023 19:34:06 GMT -05:00

https://www.coursehero.com/file/61663919/NutriGrow-Case-Studydocx/
 Conclusion

NutriGrow is taking its business to the next level. This growing opportunity involves not only
management but also employees, suppliers, and customers. Consequently, ensuring that we
move forward with specific, measurable, achievable, relevant and time-bound objectives is vital
to our success. This will provide all stakeholders a vision of their role within the expansion and
a clear path towards the goals that must be accomplished in the next decade. In this context,
the payroll department will play an important role in the organizational success. Thus, enlisting
the support from management to engage best practices is needed in order to implement
efficiencies and transform payroll into a high-performance team. This will ensure that NutriGrow
is set up for a successful future.

8
This study source was downloaded by 100000855112312 from CourseHero.com on 03-14-2023 19:34:06 GMT -05:00

https://www.coursehero.com/file/61663919/NutriGrow-Case-Studydocx/
Powered by TCPDF (www.tcpdf.org)