Case Study

Reduction of Error Rate in Payroll to Improve Accuracy and Reputation

LKPU has been entrusted with the task of reducing the error rate to less than 1%, thereby enhancing the accuracy and reputation of the payroll function.

At A Glance

Review and health check of payroll processes
Stabilization and optimization of HR processes
Regularity and quality assurance mechanisms
Analysis and resolution of current risks and errors
Process optimization across responsibilities and interfaces
Clarification of roles and responsibilities
Transparency in payroll process quantity and quality
Monthly reporting with key performance indicators
Project management, subject matter experts, PMO, consultants, employees
Duration: 9 Months

The Story

Within two large billion-dollar corporations, the perception of payroll errors has become a concern due to the complexity of payrolls, involvement of multiple stakeholders, and various interconnected systems. LKPU has taken on the responsibility of reducing the error rate in payroll processes to less than 1%, aiming to enhance accuracy, reliability, and the overall reputation of payroll services.

  • Conduct a comprehensive review of existing payroll processes, identifying areas for improvement and addressing any inefficiencies.
  • Ensure the stability and optimization of HR processes related to payroll, aligning them with industry best practices and standards.
  • Establish mechanisms to ensure regularity in payroll processing and implement quality assurance measures to detect and prevent errors.
  • Analyze the existing risks and error situations in payroll processes, developing effective solutions to address them and mitigate future occurrences.
  • Optimize the end-to-end payroll process, considering all responsibilities and interfaces, to streamline operations and reduce the potential for errors.
  • Define and clarify roles and responsibilities within the payroll function to enhance accountability and eliminate ambiguities.
  • Create transparency in the payroll process by establishing reporting mechanisms that capture quantity and quality indicators, enabling better monitoring and control.
  • Develop a standardized monthly reporting format that includes key performance indicators (KPIs) to track progress, identify trends, and facilitate decision-making.

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