NutriGrow is a Canadian owned and operated agricultural company, currently operating in the province of Manitoba. The organization has been in business for 60 years and has experienced relatively slow growth, until the introduction of a new product, which turned out to be great success to large agri-businesses. Based on the new products’ success, NutriGrow has made a strategic decision to market this product internationally, with the expectation of increase business activity over the next decade.
With the expectation of increase business, management has assigned the payroll department with the task of implementing payroll best practices in order to transform into an ...view middle of the document...
The issues below, have been identified in order of their relative importance based on priority and time urgency.
1. Current time keeping system
2. Archaic in house payroll system currently in use
3. Disconnect between Payroll & HR
4. No process and procedures documentation
5. Absence of payroll continuity plan
NutriGrow’s current timekeeping practice is to have plant employees fill out their own paper time cards and management employees to submit paper timecards only when they have exceptions to their regular time. The issue with manual processes in any organization is the potential opportunity for payroll fraud, data entry errors and inaccuracies. In order to create a high performance payroll department, NutriGrow will need to immediately move to a more reliable source of time and attendance. Not doing so could impact the company’s overall costs by overpaying employees for time not worked, the inability to accurately accrue/payout vacation, sick, or banked time, as well as inaccurate job costing.
Presently, the existing payroll system is outdated and independent of other systems within the organization, with very limited reporting capability. The lack of custom reporting does not allow the payroll department to provide operational managers with customize reports on a daily basis. Without accurate and updated reports, NutriGrow is unable to make informed decisions about the profitability of their products and operations, which will impact future growth of the company.
NutriGrow, currently utilizes two separate systems to hold employee information. One is an in-house system used by payroll to process employees’ pay and the other is a HRIS system used by Human Resources to store employee’s information. Because, the two systems are not integrated, mandatory employee information must be manually entered in both systems. Transferring of employees hire documents from one department to another could be missed, lost, or received late this can cause an employee to be paid incorrectly, or not paid at all. Consequently, if plant employees are not paid correctly, and on time, there is potential for a grievance payouts as a result of non-compliance with the union collective agreement. Since payroll’s goal is to expand their role in the organization, any issues with an employee’s pay would weaken their credibility.
There is no documentation of any payroll processes or procedures. The absence of documented procedures can cause confusion, inefficiencies, and may result in failure to meet deadlines not only within the payroll department but also for other area of the organizations that require information from the payroll department.
There is also no continuity plan in place; in the event of calamity, without a set procedure, employees may not be paid.
Currently there are over 700 employees all of which are paid by cheques printed on a bi-weekly basis. Manual cheque printing is neither cost nor...