Title
Receive a Presentation from the Human Resources Department on Outsourcing the City’s Payroll and Timekeeping Functions.
Body
REQUESTOR:
Human Resources Department
BACKGROUND:
The City is exploring the efficacy and efficiency of outsourcing payroll services, which are currently managed by one (1) budgeted City position with support from the Deputy Director of Human Resources. Since its implementation in 2020, the Tyler Munis payroll system has experienced some errors, glitches, missed paychecks, improper calculations, and other challenges. The issues result in an estimated 30% of additional research and time fixing issues rather than performing functional work. Implementing ADP will not only provide essential time for HR, IT, and Finance staff to focus on functional work and strategic goals but will also provide a level of access and utility to employees and leadership teams through expanded technology, reporting, and intuitive ease of use. HR, IT, and Finance are in alignment and committed to collaborating with the ADP solution.
DISCUSSION:
After review, the City has identified ADP Comprehensive Payroll Services as the preferred solution for payroll service outsourcing. ADP, like many other payroll services, offers a technology solution to combat payroll issues; however, ADP stands out by providing five (5) dedicated staff that cover all of our payroll services, such as processing, reporting, tax, audit and compliance needs, as well as dedicated live support for both HR staff and employees on issues ranging from payroll and time issues to benefits coverage. In addition, the comprehensive software suite from ADP provides some critically needed infrastructure, most notably a true Human Capital Management system, which is the HR side of any enterprise system. This module is absent from the current Tyler Munis configuration, which forces all employee actions through the financial/payroll side of the system, which contributes to many issues with both function and utility.
The discussion will focus on the following:
- The permanent reduction of one (1) budgeted headcount from Human Resources, the Payroll Systems Administrator (currently vacant).
- Other associated budget/system savings to approach as close to cost-neutral as possible with payroll outsourcing.
- Associated benefits of adopting ADP processes and their full suite of software to include a modern Human Capital Management system, employee and manager self-service, geo-fenced mobile timeclocks, benefits election and administration platform and much more.
- The estimated cost associated with contracting payroll services on a per-employee, per-month (PEPM) model.
FISCAL IMPACT:
Fiscal Year impact of an estimated $188,059.25 per fiscal year for three years, offset by identified budget reductions, to include the elimination of one (1) HR position headcount and the reallocation or adjustment of existing budgeted funds to result in a cost-neutral outcome.
DISTRICT:
Citywide
ATTACHMENT(S):
1. ADP Service Agreement
2. Presentation