digital payroll revolution: how to leverage robotics ... · these five process steps were automated...

Digital Payroll Revolution: How to Leverage Robotics Process Automation (RPA) 2018

2Digital Payroll Revolution: How to Leverage RPACopyright © 2018 Deloitte Development LLC. All rights reserved.

Agenda

What is RPA: Overview and

context

How is it being used today?

Leveraging RPA in the payroll function

Q&A with Specialists Panel


Question

How would you describe your

general knowledge of RPA?I don’t know anything about it

I have broad awareness but not detailed knowledge

I know about RPA but have never used it

I have used RPA

We use RPA every day

4Digital Payroll Revolution: How to Leverage RPA

What is Robotic Process Automation?

Brief overview of the technology and the benefits


RPA is…

What Process Automation is

RPA is a software solution that employs virtual workers (robots) that mimic rules-based, repeatable processes across disparate systems

Computer-coded software

Programs that replace humans performing repetitive rules-based tasks

Cross-functional and cross-application macros

RPA is not…

Walking, talking auto-bots

Physically existing machines processing paper

Artificial intelligence or voice recognition and reply software

Scraping data from the web

Making calculations

Connecting to system APIs

Extracting structured data from documents

Collecting social media statistics

Following “if/then” decisions/rules

Opening email and attachments

Logging into web/enterprise applications

Moving files and folders

Copying and pasting

Filling in forms

Reading and writing to databases

What it can do


RPA overview

Video to summarise a robot

https://www.youtube.com/watch?v=FV8lM9SIFQ8&t=3s

https://www.youtube.com/watch?v=FV8lM9SIFQ8&t=3s


By 2020 this is expected to become 72%. If this continues at current level, RPA will have achieved near universal adoption.

2RPA continues to meet and exceed expectations across multiple dimensions including:

3Most organizations have started their journey now.

1

What organizations are doing today

Findings taken from our Deloitte RPA survey which polls over 400 respondents from the shared services and global business services as well as other administrative organizations

RPA Journey

53%

Key market insights and stats from 2017

Expected in 2020

72%

0% 20% 40% 60% 80% 100%

Improved compliance

Improved Quality

Improved productivity

Cost reduction

Key take away

Nowis the time to start

If you have not started now you may be behind


Leveraging RPA in the payroll function


Question

If you perceive there are barriers to your organization using RPA in the payroll function,

what would they be?No barriers

We don’t know where to start

We’re not confident there would be sufficient cost benefit

General lack of investment in payroll

We are focussed on other things and/or it’s not a priority e.g. payroll transformation


Why the payroll function may need to embrace RPA

The payroll function

often encompasses a

large number of

processes and vendor

interaction. Many of

which are entirely

manual.

1 Main Contact

An introduction of a

number of new

initiatives and updates

to legislation has made

payroll more complex.

2 Regulatory Complexity

1An introduction of

flexible employment

packages has made

payroll more complex.

3 Employer Complexity

Payroll is increasingly

becoming a Global

function which often

equates to the

managing of multiple

global vendors and

complex processes.

4 Payroll Globalisation

Tax digitalisation is due

to revolutionise the

corporate role and the

importance of getting

Payroll right first time.

5 Right First Time

The increasing pressures faced by the payroll function


Application of RPA to the payroll function

Core activities that could be streamlined or automated by the deployment of robotics

Function Payroll function

Commence

payroll

Payroll

processing

Close

payrollYear end

Payroll

managementPayroll

analytics

Maintain employee payroll data

Payroll processing Payroll sign-off Production and filing of statutory reports

Management of vendor SLAs

Dashboard provision/hosting

Data from 3rd party providers

Payroll calculationGeneration & distribution of reports internal/external

Issue year end certificates to employees

Employee experience monitoring

Data integrity checks/trend analysis

Data from Internal departments i.e. HR/Finance

Create, balance and reconcile employee payment files

Generate and check statutory reports

Tax technical analysis

Data changes from local authorities

Distribution of ‘ee’ payslips/upload to ‘ee’ self-service

File any confirmation of submission

Payroll reconciliation & data validation

Create, review and send GL file to finance

Benefit reporting

Submission of electronic files to tax authorities

Management of employee payroll queries

Services

Core

activities

Payroll Processing Payroll Management


Entry level RPA example solution for payroll

Automated data entry into payroll and accounting systems

As-Is Process: Employees were manually extracting data from payroll systems, using the data to manually calculate payroll accruals, and posting payroll entries into a standard accounting system

Payroll Data Input Process

Will manually input data into separate

spreadsheets from systems

Payroll rep gathers payroll data from disparate systems

Will have to manually capture geographic

locations when calculations salary

information

Payroll rep will have to populate another

worksheet with accrual calculations

Payroll rep will manually extract information from

sheets and input into accounting software

These five process steps were automated using RPA

0manual steps as entire process was automated

Reduced errorsas calculations and data entry were 100% automated

5steps with manual rework by payroll analysts

Error-pronetasks requiring significanttime spent

Process BEFORE RPA Process AFTER RPA

To Be Process: The HR ‘Bot’: Reduced FTEs required to complete activity || improved processing speed of previously manual activities || reduced errors associated with individual tasks


Converting an equity transaction report into a payroll instruction

Advanced application of RPA in payroll

Transaction Report

Creation/release individual international mobile and domestic employee transaction report via a secured data transfer platform

Payroll instruction

Payroll instructions created detailing full transaction details in each jurisdiction (where applicable) for payroll reporting purposes

Reconciliation review

Deloitte review payroll output report with instruction to identify any ‘deltas’ and provide commentary back to client

Payroll Review

Cross check on individual country instruction file with transaction repot


Top tips

Deloitte has guided many companies on their automation journey

Adapt

1Ensure strong

Business and I.T,

security and risk

engagement to

unblock

challenges and

champion

outcomes

Engage

Be ambitious

about realising the

potential benefits

of RPA, but start

with a small

process to prove

the concept

Think big, start small

Build in robust

governance from

the start to ensure

the RPA program

scales effectively

Governance

Solid

communication of

the change that

robotics may bring

into your business

and how this may

affect teams

Change communication

Understand which

robotics Vendor

you should

collaborate with

Vendor


Your Payroll Robotics Journey

Stages in RPA from learning to implementing

Further deep dive into robotics for

payroll teams. This includes a live demo,

to demonstrate how it can be applied

and what the potential benefits are.

Lab #1: Explore RPA

Introduce and showcase RPA as a

department-wide capability, identify

opportunity areas, and define Payroll’s

robotics vision. Have the stakeholder

teams commit to three projects that

could be taken to a Minimum Viable

Product within four weeks.

Lab #2 Envision the possibilities

Deploy strategically across the

department value chain to enhance

benefit and automation. Deloitte can

help you develop a road map and

project timeline for automating

Lab #3: Design, build & deliver

Understanding and demonstration of

capabilities for cognitive solutions,

where they might be applicable in your

payroll function.

Lab #4: Cognitive initiative

Pre-Lab

Complete an automation questionnaire

On the day

Three hour Meeting with Deloitte RPA SpecialistsUnderstand robotics better by building your own basic robotReview and discuss business processes for RPA feasibility

Output

Report prioritizing your processes for RPA, including the identification of one project to pilot


Question

What areas might you consider using RPA for in the payroll function?

Data gathering

Equity calculations

Payroll reconciliations

Report generation

Year end activities


Q&A


The future of payroll in the digital world?


Question

Could you see your organization using RPA within the payroll function within

the next 2 years?Yes

No

Don’t know


Deloitte Contacts

Craig Darrah

Craig leads our Tax Robotics and Cognitive Automation team. As a managing director and part of the Deloitte Tax LLP Management Consulting practice, he is focused on tax department operations and technology transformation.

Joanne Grotheer

Joanne is a Human Capital Deloitte Consulting LLP

professional who brings 30 years of experience

delivering projects across both payroll and HR

functional areas. She has experience working across all industries including complex

union environments.

Amelia Corfield

Amelia is a senior manager in Deloitte Tax LLP’s Global Employer Services practice and is a member

of the Chartered Institute of Taxation. Amelia has more than

eight years’ professional experience advising clients on various UK

domestic employment tax matters. She has particular experience in

undertaking employer compliance risk reviews for a number of

businesses, both in the UK and globally.

Martin is a Deloitte Tax LLP professional who has 25 years of experience in employment tax compliance and payroll operations. Martin offers a unique perspective on cross-border payroll considerations and process optimization to his clients at Deloitte.

Martin Rule


Thank you!


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digital payroll revolution: how to leverage robotics ... · these five process steps were automated...

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