O02 Case Study 2 Payroll

New York University
Payroll Assessment
Final Report
July 2009
Table of Contents
• Executive Summary
• Project Objectives and Approach
• Findings
• Opportunities
• Options Analysis and Recommendations
• Recommended Projects and Implementation Roadmap
• Appendix
2
Copyright © 2009 Accenture All Rights Reserved.
Executive Summary
• Findings
– Current annual payroll operating cost of $4.7 million offers significant opportunity for
improvement
– Time & Labor process is completely manual
– HR/Payroll system is 30 years old and presents considerable risk of failure
• Recommendations
– Continue to run payroll as an insourced function
– Implement a Time & Labor solution
– Transition payroll into a true Service Center model and optimize payroll operations
– Reengineer key aspects of HR transaction processing to improve speed and efficiency of
transactions which affect payroll
• Financial impact
– Reduce steady state run cost by $2.1 million, a 45% reduction
– Payback: 2.3 years with an NPV of $18 million
3
Executive Summary
The to-be Payroll environment at NYU will have the following characteristics:
– Run cost reduced by approximately 50%

– Automation of all payroll-related processes
– Elimination of the risk associated with an obsolete HR/Payroll system
– Payroll department optimized for maximum efficiency
– Payroll operating in a Service Center model
– Simplified payroll processing calendar with fewer pay cycles
– University-wide shift in behavior and mindset:
• More operational discipline and more timely processing
• Fewer exceptions
• Elimination of check distribution and reduction in check cashing services
• A self service model for data entry and issue resolution; examples:
– Self service for employee personal data entry (e.g. time entry, address change)
– Self service Employee Portal for procedure and policy information
– 800 number for employee inquiries
4
Project Objectives and Scope
• The objectives of the payroll assessment were to:
– Investigate opportunities for improving accuracy, efficiency, and effectiveness across NYU’s
US Payroll process
• Assess both short-term and long-term payroll considerations
Benchmark payroll operational metrics and compare to leading practices with specific
•
focus on operational efficiency, cost-to-serve, field/input compliance, and payroll
work/activity distribution
– Analyze payroll service delivery alternatives (in-source/outsource) and supporting technology
– Define a high-level roadmap and go-forward recommendation
– Develop a financial analysis of options including one-time and ongoing costs aligned with the
proposed roadmap and recommendation
• The assessment focused on NYU’s US payroll operation including Time & Labor (T&L) as a key
input/component to payroll processing; the scope of the assessment also included:
– Payroll transaction and exception processing
– Supporting payroll related technology
– Payroll processing procedures & documentation
– Overall payroll process compliance (payroll operations and input dependencies)
– Processing of HR transactions which affect payroll
Note: see Appendix for more details on Project Approach

5
Data Gathering for the Project
Data gathering consisted of two activities:
– Building a fact base of current state data: operating costs, third party services and costs,
transaction types and volumes, service delivery structure, pay processing calendars,
technology applications, etc.
– Conducting a total of 18 interviews, involving 48 NYU personnel, to understand the roles,

procedures, issues, opportunities, and challenges with the current payroll process
• Schools/Units – Time data collection, review, and submission; HR transaction
preparation and entry
• Central Areas – Time data entry and payroll processing; Academic Appointments; HR,
Benefits, and IT Support
Note: see Appendix for the detailed inventory of interviews/interviewees

6
Themes/Findings from the Interviews
• Time & Labor processing is almost 100% manual

• Onboarding and other upstream HR activities cause delays in the entry of HR transactions,
which then create late payroll transactions
• There is a lot of complexity inherent in a new hire transaction which often results in delays
and late processing
• There are an unusually high number of reviews and approvals in the end-to-end process
• There is no standardization of Time and HR processes/roles within the Schools/Units
• A majority of the complexity and issues within the Schools/Units is with the cost accounting
associated with Pay and HR transactions, not the payroll transaction per se
• End users want better access to information – about employee data and about payroll-
related processes and procedures
• There is no standard tracking mechanism for Sick/Vacation time (some schools use shadow
systems, others do it manually); this information is very frequently not accurate
• While overall customer service from the central Payroll department is viewed favorably, there
is considerable reliance on individual contacts/relationships to resolve issues – there is no
“service center” model for customer service
• There are fundamental limitations with the Integral system, and fundamental risk of failure
with the Integral Payroll module
• Current check distribution procedures are cumbersome and costly
7
Not replacing the Integral Payroll system
carries substantial business risk
The university’s HR and Payroll system is called Integral. This system has the following characteristics:
• Was originally developed in the 1970’s
• Runs on a mainframe computer, which is expensive and nearing obsolescence
• Integral is obsolete software with many structural limitations; very difficult to modify and maintain
– For example: No effective dating, limit of 7 jobs per employee
• Only a handful of organizations are still running Integral
• Number of IT professionals with Integral expertise is small, and getting smaller
 There is substantial business risk associated with continuing to run the 30 year old Integral Payroll
system
– Payroll failure – with no real contingency plan
– Inability to implement regulatory changes
– Dependence on two specific NYU support individuals, both of whom are nearing retirement
– Dependence on a relatively small third party support firm, JAT ($6 million annual sales, <100 employees)
 Business requirements that will require significant additional effort and cost in the absence of a
PeopleSoft implementation:
– Support for Abu Dhabi and any other global sites
– Position Management
– HR/Payroll historical data conversion in the Data Warehouse
– Additional PASS/HRIS enhancements
8
Comparison of NYU With Peer
Organizations in Higher Education
Common Payroll-Related Characteristics Within Higher Education How NYU Compares

Shared Services model for Payroll and Employee Service Does not have today
Usage of an ERP system (most often PeopleSoft) Does not have today
Existence/adoption of online self service tools Have some
Existence/adoption of an “Employee Portal” for online content and Have very basic
communications capability
Relatively complex pay calendar Yes
Complex processing around Grants and funding of academic and Yes
research appointments
Systematic tracking of Time & Labor data and Sick/Vacation balances Almost entirely manual
today
Usage of Outsourcing for Payroll-related services For W2 processing
Assessment of NYU relative to peers
On par
Lagging some
Lagging significantly
9
Current Cost Structure
Most of the cost of Payroll is outside of the Payroll Unit… Almost 60% of the cost of Payroll is in IT and
the Schools/Units which must dedicate FTE to supporting Time and Labor tracking and Payroll
$6.5M Annual Cost
Facilities
Office Supply Cost 0.3% Other Cost
2.8% 0.2%
Equipment Cost
Shipping & Handling Cost 1.1%
4.3%
Other Third Party Fees Payroll Labor

3.0% 23.2%
Almost 50% of total cost

is dedicated to
supporting a manual time
and attendance system
IT Labor
15.5%
Field Support (Schools &
Units) Labor
42.9%
Time and Labor - Labor
6.6%
10
Cost of Payroll Operations
Significantly higher cost… NYU Payroll operations cost approximately five and a half times the average
payroll operations as measured by cost per check and cost per employee served. Over 50% of cost is driven
by the manual Time and Attendance system
Payroll Cost per Payment
Current
External Benchmark $3.44
NYU Average $15.20
Payroll Cost per Payee
Current
External Benchmark $72.93
NYU Average $304.04
External Benchmark: American Payroll Association

11
Efficiency of Payroll Operations
Significantly lower efficiency… The average Payroll operation services approximately three and a half
times more employees per Payroll FTE than NYU. Almost 50% of the NYU payroll labor in this equation is
dedicated to supporting the manual Time and Attendance process
Payees processed per Payroll FTE
External Benchmark 984
NYU Average 293
Payments processed per Payroll FTE *

External Benchmark 26,144
NYU Average 5,849
* Payments Processed metric is skewed by the fact that a large portion of NYUs population is paid monthly. If this population were paid semi-monthly, the
NYU average would be about 7,700 per FTE (about 1/3 as efficient as benchmark)
Copyright © 2009 Accenture All Rights Reserved. External Benchmark: American Payroll Association 12
Payroll Quality Metrics
Late HR Input negatively impacts Payroll: NYU issues over 11,000 off-cycle payments annually (Manual
and off-cycle). Off-cycle payments and retroactive adjustments cause rework for both the Payroll department
and the Payroll support personnel in the schools/units.
Off-Cycle Checks
Retroactive Pay Adjustment Rate
Direct Deposit
Time Error 2%
External Benchmark 1.2%
5% NYU Average 6.3%
Late Time
6% Late HR
28%
Bonus
7%
Late HR Transactions by School/Unit

Other
Bottom Quartile 87.8%
13% Average 73.8%
Top Quartile 68.4%
Check
Payroll Error 22%
17%
What schools are the “best”

and “worst” performers?
 Lowest % of late HR transactions: Courant, VP Public Affairs, Silver, General Counsel, FAS, School of Law, Tisch, Stern
 Highest % of late HR transactions: Gallatin, ISAW, Vice Provost Academic Affairs, Vice Provost Faculty Affairs
13
NYU Operations
Where does Payroll Operations spend time? Manual processes cause NYU Payroll personnel to spend
more time than average managing key processes than average.
Payroll FTE Time Distribution
NYU 8.0%
Processing Payroll
Benchmark 5.8%
NYU 28.0%
Processing Time &
Attendance
Benchmark 5.8%
NYU 30.0%
Customer Service
Benchmark 22.5%
0.0% NYU
Training
NYU is spending the majority of Customer
2.0% Benchmark
Service time resolving errors and not in true,
proactive customer service
14
Opportunities – Time & Labor
Description: Implement an automated Time & Labor solution
• Web-based software which automates time entry and approvals, facilitates time entry through multiple
channels (e.g. clocks, online, etc.), entry and tracking of sick/vacation time, and entry of labor/cost
accounting information
• Implementation of updated roles, processes, and procedures for end to end Time & Labor activity
• Managed introduction of the new technology and processes across the university
Supporting Data
• Approximately 50% of Payroll labor and cost is dedicated to time & attendance management. External
benchmark average is 10%
• Manual time capture is an error-prone process. Each timesheet is manually keyed in at least 3 separate
times (sometimes more depending on the school process). Even at a 99% error-free rate, there would
still be 30 keying errors for every 1,000 timesheets
• NYU Payroll is significantly lagging the benchmark in terms of cost and efficiency – in large part driven
by exorbitant time and attendance costs
Impact
• Up to 50% reduction in Payroll T&A personnel (3.5 of 5.5 FTE) - $200K Annual Savings
• Up to 75% reduction in School/Unit Payroll support personnel (26 of 35 FTE) - $1-2M Annual Savings
• APA estimates indicate that an electronic T&A system will produce 1-3% reduction in total hourly payroll
by reducing overpayment errors and over reporting of sick/vacation time - $1.5-3M Annual savings
15
Opportunities – Payroll Service Center
and Payroll Optimization
Description: Redesign the work within the central Payroll operation
• Move Payroll towards a true Service Center model with a call center capability, automated tracking of calls and
cases, and better integration with related Benefits and HR activities
• Redesign the Payroll Calendar with the objective of reducing the number of different pay frequencies and reducing
the total number of pay runs within a month
• Move to eliminate the current process of hand delivery of checks
• Implement a payment/chargeback mechanism for exception processing such as off cycle checks and garnishments
• Implement operational metrics reporting to improve operational efficiency
Supporting Data
• A significant portion of the school’s Payroll/T&A FTE is spent on customer service tasks such as fielding questions
on leave balances, payroll deductions and missing time
• Payroll support personnel at the school level do not have direct access to the systems of record and often cannot
answer questions. These questions must be escalated to Payroll resulting in duplicate effort
• The current informal system of raising issues has no tracking or reporting system and, according to our interviews,
issues are often lost and must be raised multiple times
Impact
• Relieving HR/Payroll/T&A personnel at the school level from Payroll customer service responsibilities is essential for
realizing the $1.2M Annual savings from field support FTE noted previously
• Employee satisfaction will increase when they are able to quickly and easily find answers to their questions. The
first person they speak to (Payroll Service Center representative) will have the knowledge and systems access to
address their questions
• Shift customer service inquiries to capable, but newer Payroll employees. Current, informal system places the
heaviest burden for customer service on the most experienced (and most expensive) caseworkers in Payroll who
are the known contacts in the field.
16
Components of a Payroll/HR/Benefits
Service Center – Future Vision
Academic, Admin, and Student Employees
Tier 0 Service
Employee Portal and Online Self Service
(requires implementation of PeopleSoft)
Service Center Tools

Tier 1 Service
• Portal
Integrated Employee Call/Service Center • Knowledge Management
• Case Management (REMEDY)
HRIS • Document Management
• Automated Call Distribution
• Computer Telephony Integration
Tier 2 Service • Other
Processing Teams and Case Resolution
Payroll Team HR Team Benefits Team
17
Opportunities – HR Reengineering
Description: Reengineer HR transaction processes with the Schools and Units

• Improve end user access to information – both employee data and process/procedure documentation
• Look to more broadly distribute PASS within the Schools, down to the department level
• Look to reduce the number of approvals on a transaction
• Implement better controls/audits on Academic and Student onboarding, to reduce missed payrolls
Supporting Data
• Average percentage of late HR actions (PASS) is 74%
• Currently, only one of the schools interviewed has PASS distributed down to the department level, but they
are in the top quartile (internal benchmark) of timely PASS submissions and they perform their duties with
less personnel than average (1:134 ratio vs 1:88)
Impact
• Reduce percentage of late HR actions from 74% to 25%
• Reduce off-cycle paychecks by approximately 50-70% for an estimated annual savings of $100-200K
• Reduce Payroll FTE by 1 for an estimated annual savings of $50K
18
Opportunities – Payroll Outsourcing
Description: Outsource the data processing components of payroll to a third party
• Shift responsibility for the data processing of some, or all, of the following components to a third party
processor:
– Gross to Net payroll calculation
– Garnishment processing
– Off cycle check processing
– Check printing and distribution
– Tax reporting and processing and W2 processing
• The two different service models for Payroll Outsourcing are outlined on the next page
Supporting Data:
• Outsourcing of payroll – in the “data processing model” (see next page) would result in an 18% reduction
in the annual run cost
• Outsourcing of payroll – in the “managed service model” (see next page) would result in a 16% increase in
the annual run cost – given the significantly higher third party service cost associated with the “managed
service model”
Impact
• Reduction of the quantity of exceptions, as envisioned in the to-be environment, would be essential in
managing the ongoing run cost of payroll outsourcing
• Portions of Employee Benefits are outsourced to Towers Perrin – requiring some coordination of data flows
and other aspects of service
19
Payroll Outsourcing – Service Options
There are two basic service models for Payroll Outsourcing
Payroll Data Processing Payroll Managed Service
(modeled in Options 3,4 – see following pages) (modeled in Option 5 – see following pages)
• Outsourcer takes responsibility for the data • Outsourcer takes responsibility all aspects of
processing associated with payroll, such as payroll operation, including employee service;
Gross to Net, Garnishments, Check printing and this model is more of a true Business Process
distribution, and Tax reporting and processing Outsourcing (BPO) model; it is frequently
marketed as an integrated Payroll/HR/Benefits
• Client retains the responsibility for employee BPO model
service, transmission of data to the outsourcer,
error resolution, overall financial management • Client only retains responsibility for Vendor
and control, payroll accounting, etc. Management
• Market price of this service typically ranges from • Market price of this service typically ranges
$50-80 per employee per year from $150-200 per employee per year
• This is a well established and proven service • This is a relatively new service offering without
model; historically more popular with smaller a strong track record of service
organizations, although a growing number of
large organizations are opting for this service • Market leaders are ADP and Ceridian
• Market leaders are ADP and Ceridian

20
Options Overview
Option 1 – Maintain insourced payroll, • Time & Labor solution (presumably Workforce)
automate and reengineer key processes • Payroll "Service Center" and Operations Optimization
• HR Reengineering
Option 2 – Outsource payroll (data • Time & Labor solution (presumably Workforce)
processing model), automate T&L, reengineer • Payroll "Service Center" and Operations Optimization
key processes • HR Reengineering
• Payroll Outsourcing of GTN, Tax, W2, Garnishments
Option 3 – Outsource payroll and T&L (data • Time & Labor Outsourcing
processing model), reengineer key processes • Payroll "Service Center" and Operations Optimization
• HR Reengineering
• Payroll Outsourcing of GTN, Tax, W2, Garnishments
Option 4 – Outsource payroll and T&L • Payroll Outsourcing with full “Managed Service” model;
(managed service model), reengineer key includes Time & Labor capability
processes • HR Reengineering
21
Financial Analysis of Options
Option 1 is recommended - This option offers the lowest steady state run cost, and the best
overall financials and rate of return
NOTE: the Payroll Assessment team has validated the Time & Labor implementation estimate with the NYU PMO team
Note: see Appendix for detailed financial models of all 4 options

22
Comparison of Annual Run Cost Estimates
Option 1 delivers the highest annual cost reduction – with the optimal combination of
labor, third party, and other costs
23
Key Metrics – Before and After
Metric APA Benchmark NYU Today NYU After

Cost per check $3.44 $15.20 $8.95
Cost per employee $72.93 $304.04 $179.06
Employees per Payroll FTE 1000 293 775
Checks per Payroll FTE 26,144 5849 15500
% of Payroll time spent on 6% 31% 7%
time entry
% Off Cycle Checks 1.2% 3.4% TBD
NOTE: given the inherent complexities in some aspects of Higher Education

Payroll, NYU should not expect to get to the level of the APA Benchmarks,
which includes all companies across all industry segments
24
Guiding Principles for Implementation
Roadmap and Projects
• The goal of the Implementation Roadmap is to strike the proper balance among multiple
factors:
– Funding and ROI
– Resource availability
– Pace of change
– Timing of benefits realization
– Fit with annual University calendar
– Fit with other large University initiatives
• Each of the projects has been envisioned, with a high level estimate of effort and duration,
with a holistic view of the end-to-end process – considering business process, roles, change
management, etc. in addition to software installation
• Projects have been estimated using three resource types:
– NYU User: functional expert in payroll and payroll-related processes
– NYU IT: technical expert in payroll-related systems
– Contractor: external expert in software, relevant processes, and large scale
project/program management
25
Recommended Projects – Summary
(based upon Option 1)
Project Project Components Duration Total NYU User – NYU IT – Contractor – Total –
(mths) Workdays Avg FTEs Avg FTEs Avg FTEs Avg FTEs
Time & Labor • Business process and roles design 14 3200 2.2 4.4 5.1 11.7
• System configuration and customization
• Interfaces and Reports design and development
• End-to-end testing preparation and execution
• Deployment planning and execution
• Change Management and Communications
• Program Management
Payroll Service • Design and implement Service Center model 12 1100 1.5 1.5 1.5 4.5
Center/ • Reengineer Pay Calendars
Optimization • Eliminate hand delivery of checks
• Implement payment/chargeback mechanism for
exceptions (e.g. Off Cycle checks: $30)
• Design and implement Operational Metrics
Reporting
HR • Improve end user access to information 9 600 1.3 0.7 1.3 3.3
Reengineering • Distribute PASS more broadly
• Reduce the number of approvals
• Implement better controls/audits on Onboarding
processes
Note: see Appendix for more details on projects

26
High Level Implementation Roadmap
(based upon Option 1)
27
Next Steps
• Confirm recommendations and going-forward Roadmap with key stakeholders
• Proceed with procurement of Workforce Time & Labor solution
• Begin to plan for startup of projects, for Fall 2009
28
Appendix
• Project Approach
• Inventory of Interviews
• Detailed Financial Analysis of Options
• Project Descriptions
29
Timeline and Activities
The payroll assessment work was conducted over a 6 week period and included the
following activities and work products
Week Phase 0 1 2 3 4 5 6
Pre-Assessment Conduct Current Benchmark and Conduct Options Analysis Develop Roadmap &
State Assessment Define Next Steps
• Define Data • Compare to benchmarks

• Conduct interviews across • Conduct follow-up • Develop roadmap and
Requirements
Activities
payroll, business and IT interviews (as and leading practices • Socialize findings and financial analysis of
• Collect and
• Analyze current data needed) (where applicable) incorporate feedback options
Distribute Data • Inventory and prioritize • Continue analyzing • Conduct an options
• Plan and Prep for • Define next steps
opportunity areas data analysis including • Present final
Assessment • Update inventory costing assessment
and priority (as • Summarize
needed)
Work Products
• Findings Summary (FINAL) • Roadmap and

• Interview notes • Revised Prioritized financial analysis of
• Prioritized • Benchmarks
Opportunities options
• Options Analysis
Opportunities Inventory
• Next Steps
• Findings Summary (DRAFT)
Inventory • Final Assessment
Summary
Manage Project
Kick-off Status Findings/Q&A Findings Final Report
30
Approach
The project approach consisted of three main phases of work
• Analyze current data that will aid in obtaining a deeper understanding of NYU’s
current Payroll environment including systems, processes, issues, level of
Conduct Current complexity, volumes, metrics and current operating costs
State Assessment • Conduct interviews across Payroll and areas that touch payroll and across
business and IT to obtain a further understanding of the current environment,
issues and opportunities for improvement
• Inventory and prioritize opportunity areas
• Analyze prioritized opportunities and compare to benchmarks and leading

Benchmark and practices where applicable
Conduct Options • Conduct a sourcing options analysis (including costing) leveraging
Analysis
Accenture’s Global Estimating Models and experience in working with 3rd
party payroll providers
• Summarize findings, opportunities, options analysis and recommendations
• Interactively present findings and incorporate feedback

Develop Roadmap • Create a roadmap to address recommended changes
and Define Next
• Develop a financial analysis of options
Steps
• Define next steps
31
Inventory of Interviews
32
Option 1 – 8 Year Financial Model
33
34
35
36
Time & Labor Implementation
Project Summary
Objectives To implement a web-based solution to automate the end to end process associated with Time &
Labor data entry and management, including the management of Sick/Vacation time and the
management of cost accounting information
Scope A Time & Labor solution to enable the NYU Student and Administrative workforces; will also enable
the process within the central Payroll organization to collect, verify, and submit time data into the
payroll process
Key Benefits • Reduces by 70-80% the effort and cost associated with the current manual activity
• Automates the interpretation of raw time data into the proper earnings categories
• Enables systematic tracking of accrual balances (i.e. Sick, Vacation)
• Enables multiple channels for data entry such as clocks, online entry, etc.
Project Components • Business process and roles design
• System configuration and customization
• Interfaces and Reports design and development
• End-to-end testing preparation and execution
• Deployment planning and execution
Estimated Duration 14 months
Estimated Workdays 3200 workdays
Average Staffing • 2.2 functional/user FTEs
• 4.4 NYU IT FTEs
• 5.1 vendor/contractor FTEs
37
Payroll Service Center/Optimization
Project Summary
Objectives To improve the operational efficiency and cost performance of the central Payroll operation; to
improve the effectiveness of customer service to the NYU workforce
Scope The project is focused on all aspects of the Central payroll department’s processes, detailed
procedures, and roles; also included in scope is the interaction between Payroll and the University
on customer service and issue resolution; potentially the new model will be integrated with the
customer service aspects of NYU Employee Benefits and HR services
Key Benefits • Improves payroll processing efficiency and drives down operating costs
• Provides for systematic tracking of employee inquiries and cases
• Provides more seamless, integrated service for employees
Project Components • Payroll Business process. procedure, and roles design
• Operational metrics resport design and development
• Service center tools (e.g. case tool, telephony) configuration and implementation
• Pay calendar reengineering and simplification
• Check distribution simplification
• Chargebacks design and implementation
• 1.5 NYU IT FTEs
38
HR Reengineering
Project Summary
Objectives To implement a series of process, education, and technology capabilities which will serve to
streamline and accelerate the processing of HR transactions and also improve the quality and
accuracy of the transactions
Scope The scope is focused on the HR transactions that directly affect payroll processing; most of the effort
would be focused on the Schools/Units and how they process transactions
Key Benefits • Reduces cycle time for HR transactions
• Improves quality/accuracy of HR transactions
• Reduces downstream payroll errors/exceptions
Project Components • Design and implement end user support materials (to facilitate timely and accurate processing)
• Design and implement an approach to distribute PASS more broadly across Schools/Units
• Evaluate and design ways to reduce the number of approvals on a given transaction
• Design and implement a quick hit solution (process and/or technology) to prevent new hires from
being “missed” on payroll
• 0.7 NYU IT FTEs
39

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New York University

• Project Objectives and Approach

• Options Analysis and Recommendations

• Recommended Projects and Implementation Roadmap

– Run cost reduced by approximately 50%

Note: see Appendix for more details on Project Approach

Data gathering consisted of two activities:

– Conducting a total of 18 interviews, involving 48 NYU personnel, to understand the roles,

Note: see Appendix for the detailed inventory of interviews/interviewees

• Time & Labor processing is almost 100% manual

Common Payroll-Related Characteristics Within Higher Education How NYU Compares

Assessment of NYU relative to peers

$6.5M Annual Cost

Other Third Party Fees Payroll Labor

Almost 50% of total cost

Payroll Cost per Payment

NYU Average $15.20

Payroll Cost per Payee

NYU Average $304.04

External Benchmark: American Payroll Association

External Benchmark 984

NYU Average 293

Payments processed per Payroll FTE *

NYU Average 5,849

5% NYU Average 6.3%

Late HR Transactions by School/Unit

What schools are the “best”

Payroll FTE Time Distribution

Service Center Tools

Payroll Team HR Team Benefits Team

Description: Reengineer HR transaction processes with the Schools and Units

• Market leaders are ADP and Ceridian

Note: see Appendix for detailed financial models of all 4 options

Metric APA Benchmark NYU Today NYU After

NOTE: given the inherent complexities in some aspects of Higher Education

Note: see Appendix for more details on projects

• Confirm recommendations and going-forward Roadmap with key stakeholders

• Proceed with procurement of Workforce Time & Labor solution

• Begin to plan for startup of projects, for Fall 2009

• Detailed Financial Analysis of Options

• Define Data • Compare to benchmarks

• Findings Summary (FINAL) • Roadmap and

The project approach consisted of three main phases of work

• Analyze prioritized opportunities and compare to benchmarks and leading

• Interactively present findings and incorporate feedback

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