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Human Resources & PayrollProcess Flowchart

Human Resources & PayrollProcess Flowchart

1. HR & Payroll – Staffing L6 to L11

2. HR & Payroll – Hire Personnel

3. HR & Payroll – Terminate Employees

4. HR & Payroll – Time Recording

5. Performance Management

6. PMP – Salary Increase

7. PMP – Bonus

8. C&B Process – Job Evaluations (JE)

9. Vacation Processing

10. HR & Payroll – Payroll Data Maintenance

11. HR & Payroll – Payroll and Payment

12. Accounting and General Ledger

1 – HR & Payroll – Staffing L6 to L11 Process Flowchart TA

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Start Yes

No

FHR Sends the job description and sends it to TA to post the vacancy on

“My Possibilities”

Headcount Planning in AOP or People

Planning (ad hoc hiring are also in place )

Is it new position or current role

change?

Hiring Manager completes a “Job Evaluation Form”, which outlines in detail

the job and the candidate skill requirements and sends It to FHR Manager

Job Evaluation

process

Job assessment is done by C&B if it does not exist in grid.

FHR Sends to TA team every Tuesday HC Authorization

Spreadsheet to get the Region/Sector approval to Post the job

HC Authorization Spreadsheet

Yes

The open position is posted for 10 calendar days on My Possibilities for Level 6+ To L11 after ensuring

that all necessary documents were received from FHR Manager

Were there any internal applicants?

TA Team review the applicant eligibility with C&B Team and the employee’s (internal applicant) FHR Manager. Further screening is conducted prior to

communicating the final list to FHR Manager. LOR is sent to rejected candidates at this stage

FHR receives the list of eligible applicants for interviewing and forwards accepted candidates

to the hiring Manager. FHR sends LOR to rejected internal candidates and Staffing sends

LOR to rejected external candidates

L10 & L11 external candidates will be required

to complete SHL Online Assessment

TA Manager gets the approval of the jobs from

Region/Sector

Is candidate suitable for The

job?

TA team starts/resumes external searchTA team will conduct phone screening

for external candidates

NOYesFHR Manager informs TA of

accepted candidate (For Internal and external candidates)

TA Team initiates LOU request to C&B Team (For Internal & external

candidates).

NO

FHR Signs LOU from responsible HR Director and Communicates

LOU to candidate

NEA Compensation Asst. Manager prepares LOU according to Compensation guidelines and NEA Compensation Manager reviews

LOU before sending it to FHR

NEA Compensation Asst. Manager sends LOU as PDF format to responsible FHR

011EGHRPHRSTMS(Supporting)

Selected candidate signs LOU and FHR infroms personnel to

update the employee’s personal file and system file

Did selected candidate accept

LOU?

Is this an internal candidate?

FHR informs C&B and TA to close the vacancy

NO

Yes

Yes

NO

1

2 – HR & Payroll – Hire Personnel Process Flowchart P

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list

A

Start

Candidate is required to pass a pre-employment medical check-up and

submit hiring documents and experience certificates for issuing an

employment contract

END

1

Personnel Specialist prepares a contract of three copies, assigns an employee number

to the new hire and initiates the “CRT Form” including job details, salary, level

and date of employment

CRT Form

Approved LOU form is attached to the CRT form

(*1)

Social Insurance & Labor Office documents including a copy of the employment

contract are prepared by the Specialists and sent to Social Insurance Authority/

Labor Office after signing

All new hires are required to sign an employment contract and Code of Conduct within two weeks from

starting date. The employment contract is also signed by HR after the employee completes the mandatory hiring documents. Employment Contract and Code of Conduct

are kept in employee’s personnel file.001EGHRPHRHPMK

Specialists record new hire data except salary

(All employee data except payroll)

Payroll Specialist records the new hire salary on

INTERCOM (Payroll and Benefits data)

INTERCOM(*2)

INTERCOM(*2)

END

(*1) - On-boarding schedule is prepared and HR policies are accessible to all relevant employees.(*2) - Access to the payroll master file is restricted And only authorized users have access to Payroll master file based on on management authorization

with proper SOD (002EGHRPHRHPMK)

3 – HR & Payroll – Terminate Employees Process Flowchart FH

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StartEmployee or

company request the termination

Has the employee left at his own

will?

Personnel Manager notifies labor court with management decision and investigation results to avoid

any future financial obligation

Is dismissal based on legal investigation?

NO Yes

Termination Request

Employee writes termination

request and signs

Yes

Personnel Manager notifies the employee in writing that contract will not be

renewed

NO

Personnel controls the form and sends it to employee to take it to relevant departments (Finance,

IT & Administration)

Clearance FormRelated Personnel Team

coordinates the approval process of “Clearance Form” & Social

Insurance documents

FHR conducts exit interviews for employees leaving

voluntarily

Personnel Manager initiates “Discharge Memo” indicating the

effective date of employee’s dismissal from the company

NEA Compensation Manager calculates the severence pay, if any, and any other payments, if applicable and gets the

approval of the responsible HR Director

Financial Controller reviews calculation and the supporting documents before issuing the

cheque to the employee and sends approval by email to NEA Compensation Manager

NEA Compensation Manager sends To FHR Manager and

informs MU Financial Controller of the calculation

The terminated employee is deactivated from the payroll system (termination date is

entered to the system)

Social Insurance Specialist informs the Social Insurance Authority to

terminatE employee’s social insurance duration

Payments are made to the terminated employee separately not

during monthly payroll payments

FHR Manager informs Payroll Manager & Personnel manager

Monthly Notification is sent to IT, Administration and Security teams to revoke system and

physical access rights from resigned, terminated and dismissed employees

012EGHRPHRTEMS (Supporting)

END

END

END

4 – HR & Payroll – Time Recording Process Flowchart Em

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Scope: Non-sales Staff

Start

END

Employee fills out the “ Leave Request Form”

Employee signs at the security and notifies the supervisor who confirms

employee’s attendance

Employees swipe timecard at the beginning & end of

their work day

Leave Request Form

Time keeping data is extracted to an excel sheet

Did employee forget to bring or swipe the card?

Vacation process

Yes

NO

Shift Attendance Sheet including hours

worked

“Shift attendance sheet” including absent employees is prepared by Supervisor and sent to Personnel Specialist with all forms

(overtime forms etc.)

Overtime Sheets

At the end of the month, overtime sheets are approved by department manager and immediate manager

Payroll Process

Checks the attendance record data against approved Shift

attendance Sheets, and forms

Personnel specialist corrects or edits the attendance record indicating cause of

change based on approved documents

Does attendance record need to be corrected or

edited?

Monthly follow-up “Form2”

Once all aproved edits have been keyed into the monthly follow-up excel sheet “Form2” and open exceptions items have been resolved, the monthly

follow-up sheet “Form2”is ready to be processed to Central Payroll

Personnel Specialist receives daily attendance records and

exceptions and update the monthly follow-up excel sheet

Yes

NO

END

No “Start”

5 – Performance Management Process Flowchart O

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Employee / Employee’s manager / FHRs

Start

OMD ensure that ALL English Speaking L6+ employees have completed their objectives on the system. FHR Managers ensure that

all Arabic Speaking L6+ have completed their objectives. FHR Managers ensure that All L6+ English Speaking employees who were hired after the deadline of objective setting were added to MyAccess

and OMD ensure that they have completed their Objective 004EGHRPHRPMMK

English Speaking L6+ Employees upload PDR on myAccess while L6+ Arabic

Speaking employees send PDRs (word doc) to FHR Managers via email and

manager sends PDR to FHRs

Each director cascades Department objectives to his/ her direct reports and agree on their objectives

L10+ managers cascade Dept. objectives to their direct reports

and agree on their objectives

L6+ managers cascade Dept. objectives to their direct reports

and agree on their objectives

Manager and Employee meet to discuss YTD performance and

any changes to objectives taking place during MYR

Employee Adds self input of progress against

each objective

After getting alignment of Manager, employee reflects the changes on

doc. and Manager adds his/her comments where necessary.

English speaking L6+ employees submit MYR on system (MY Access) and Arabic Speaking L6+

employees complete their comments on Word Doc and send PDR to direct managers & FHR Managers

Final list of PDR ratings

FHR Manager reviews PDRs and Ratings and -if required- meets with Employee’s

direct manager on PDR quality and calibration of performance ratings

Executive Committee (OMD, Super FHR, Function Heads, and GMs)

meet to calibrate a selected sample of PDRs as per OMD criteria

Employee adds YE self input, reviews with direct Manager and submits it

on MY Access System

Manager reviews employee self input,

provides comments and proposes ratings

Super FHR Manager reviews PDRs and Ratings and meets with Function

Director on PDR quality and calibration of performance ratings

Second level Manager reviews ratings and confirms PDR to be

routed to direct manager for final rating confirmation and submission

to the employee

OMD communicates to Direct Managers to confirm YE Manager Review to be

routed for second level manager for approval

OMD Sends final list of PDR ratings to C&B team to prepare Comp. Letters

Compensation Manager calculates the merit and other salary increases/adjustments, reviews the data with NEA C&B Manager,

obtains the approval of BU HRD for the changes and any exceptions and issues the Comp. Letters and then sends them to FHR Managers

For Arabic Speaking L6+ employees, FHRs provide Managers with Compensation

Letters with final ratings including a disclaimer confirming that employee has

reviewed manager’s comments

Manager and employee meet for PDR discussion.

Manager & Employee Signs Comp. Letter and sends signed original to FHR

Manager

FHR Sends Comp. Letters to Personnel to be kept in

employees’ files

Signed Comp. Letter

OMD monitor if focal point review process is complete and signed PDRs are sent back to HR

004EGHRPHRPMMK

Final Salary List

Payroll Processing

After PDR discussion with direct manager, English Speaking L6+ employee, signs PDR Form on My

Access system

END

6 – PMP – Salary Increase Process Flowchart M

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Start

END

Salary Ranges/ Merit Matrix

Salary structure / Merit matrix (Level Ranges, principles of C&B) is approved by region

and sector

Salary Analysis including expected inflation rate for current and next year, company and market data is performed by NEA C&B Manager

Is increase for L6+

Merit increase as well as guidelines are passed on to FHR

Managers for completion of promo and equity in accordance

with set guidelines

Compensation & Benefits manager prepares the merit increase, promo and equity tool and NEA C&B

manager reviews it. Merit Increase percentage is determined by either government special increase

and/or merit matrix; whichever is higher

FHR Managers review the file including the titles, levels, increases,

etc. to ensure that all changes are made as per set guidelines

Compensation & Benefits Manager checks requests for

promo and equity and ensures alignment with set guidelines

NOFinal list of PDR ratings

& Merit Matrix Yes

Compensation & Benefits Manager ensures alignment with set budget for merit increase and present final outcome to Mgmt

team for approval

Compensation & Benefits Manager sends final salaries To Payroll team ccing MUs GM to reflect changes to

the Payroll System

Payroll enters the newly approved salaries to the system and sends the final version to

Compensation & Benefits Manager ccing NEA C&B Manager and MUs HR Directors

Compensation & Benefits Manager reviews the Payroll report versus the merit file to ensure that all changes

were reflected accurately and sends approval to Payroll ccing MUs HR Directors and NEA

Compensation & Benefits Manager

Payroll obtains the approval of MU HR Director to transfer

the salaries to the banks

New Compensation Letters

Individual merit payments are processed.

Letters are delivered to FHR Managers to deliver

them to employees

Compensation & Benefits Manager obtains the salary change audit report in March (L6+) and July (L5-) and compares it to the final approved updated increases

005EGHRPHRPMMK

Compensation & Benefits Manager issues Comp. Letters with the new salary changes

7 – PMP – Bonus Process Flowchart P

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Bonus

Start

END

Compensation & Benefits Manager prepares the Final

bonus list for all L6+ employees

Payment Process

NEA C&B Manager reviews the final bonus list and BU

HR Director approves it

Compensation & Benefits Manager calculates the bonus amount for Level

6+ employees in line with management bonus policy

Final list of PDR ratings

Bonus Guidelines

Payroll sends the final list to NEA Compensation Manager for review before sending the

file bank

NEA C&B Manager sends the final bonus list to Payroll to update the

system

Payroll Updates the system with the final approved

bonus and sends the file to C&B for review

Compensation & Benefits Manager approves the final file and confirms to Payroll

to send to the bank

Payroll sends the final approved file to the

bank

8 – C&B Process – Job Evaluations (JE) Process Flowchart FH

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Reg

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Start

END

Identify need to evaluate existing Job and/or newly

created job

Review job evaluation format to ensure that all job accountabilities &

job dimensions are covered

Compensation & Benefits Manager conducts individual job interviews/

assessment with the FHRs

Evaluate jobs using the Hay tool

finalize JE

L9- JE is approved by the BU, L10 / L11 are only sent to Region for review and

approval. Band1+ jobs are sent to Region to complete JE process and approval

JE is approved

Job will remain at same level

Line Manager completes a “Job Evaluation Form” which outlines in

detail the job and candidate skill requirements and sends it to FHRs

Communicate final approved job level to

the FHR

Compensation & Benefits Manager ensures in Q2 & Q4 that proper

approvals have been obtained for job evaluations

006EGHRPHRJEMK

Yes

No

9 – Vacation Processing Flowchart P

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StartEmployee Manager approves the form

manually

Employee fills out the vacation form

manually

Vacation Form

Personnel specialist In each location enters vacations to The HR System (INTERCOM) for each

employee manually By end of the month

On a quarterly basis, Payroll Specialist/ Manager sends accrued vacations by cost

center to GL

Based on updated vacation balance for each employee, accrued vacations are calculated quarterly and do not include

future vacations

Accounting and General Ledger

Personnel Specialist generates vacation report

Employee delivers approved form to the Personnel Specialist

On a monthly basis, the HRSS Payroll Quality Assurance Manager checks the calculation of vacation days. Quarterly, the related accruals

are calculated automatically by the system and sent to Finance016EGHRPHRVPMK

Based on labor law, vacation balance is settled every 3

years or according to company rules

Time recording process

Time records show absence of

employee On a monthly basis the location (HO, Plant or DC) Personnel Head/Manager checks

accuracy of vacation records and ensures that they are accurately reflected in the HR

System007EGHRPHRVPMKAt the year end, Personnel specialist Adhere to the

year end closing date (10Jan) and all received vacations related to last year must be recorded to

HR System before the closing date.

END

Start

10 – HR & Payroll – Payroll Data Maintenance Process Flowchart C

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A

Start

Personnel Specialist enter/ update the records based on

the personnel change request in INTERCOM

Management review and approval of personnel data change request

in line with policies and procedures

Personnel Change of Status Form

C&B updates/approves the personnel salary data in

accordance with position level and salary scale

Requestor or HR department initiates the related form for the change of

employee data ( e.g promotion, termination, new hire, transfer etc.)

Payroll Specialist updates the employee Salary Data

002EGHRPHRHPMK

Need identified to change employee

data

Is it salary related ?

Yes

NO

Master File edit change report is printed and

reviewed

On monthly basis Compensation & Benefits Manager extracts Salary Changes Audit report from the system

and reviews changes for L6+ and L5- employees against the related supporting documents

008EGHRPHRPDMK

On annual basis, BU HO Personnel Manager reviews employee master file against most

recent time records and approved attendance to ensure employee existence

014EGHRPHRPDMS

Comply with NEA confidentiality guidelines

INTERCOM(Payroll and

benefits data)

11 – HR & Payroll – Payroll and Payment Process Flowchart C

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A

Start

Bank net payment list is generated by the system

Payroll Manager runs the payroll calculation. The payroll system automatically calculates payroll

PMP- Salary Increase

MU Finance Controller and second authorized signatory’s approval of bank net payment list before the transfer is

made to bank

Salary increase report is entered manually to

INTERCOM

Payroll enters the time records and additions/

deductions to INTERCOM

Payroll receives files for time records and payroll

deductions/additions from locations

Payroll Analysts review data entered to the system and payroll manager opens

wrong entries only for correction003EGHRPHRPPMK

Management review and sign off by Payroll Quality Assurance Manager of gross to gross reconciliations in addition to review of gross to net reconciliation

and comparing it to the final bank transfer009EGHRPHRPPMK

Payment is executed

Payroll slips are generated from the system by the Payroll Operations

Manager and provided to all employees to support pay receipt

Biannually checks are performed by the tax consultant to make sure that the salary tax is properly calculated

and deducted from employees010EGHRPHRPPMK

INTERCOM(Payroll and

Benefits Data)Start

12 – Accounting and General Ledger Process Flowchart

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Payroll JournalGL Payroll Journal

Payroll JournalPayroll Journal is

generated by the system per cost centers

Payroll and Payment Process

Payroll Operations Manager sends the

Payroll Journal to IBM

Start INTERCOM(Payroll and

Benefits Data)

SAP GL

Payroll Data is uploaded to SAP and

journal is created in GL

Management review and approval by GL Manager of INTERCOM

Payroll Journal, and Payroll Summary against GL

END

Annual Bonus accrual is calculated whenever a change

in the bonus matrix occurs

Salesperson commissions calculation is approved by Regional Sales Director in

PCE and in CFI by Sales Director

Calculation is sent to GL Department via e-mail (MS Excel

format on the basis of cost centers)

Bonus accrual calculation is prepared by finance based on planned % and C&B is notified

Sales Objectives are sent on a monthly basis to the Commission

Specialist in CFI and PCE

Commission Specialist calculates commission based on actual results

received from Finance

Payroll and Payment Process

Vacation Processing

Manual Journal entry is processed for vacation accrual by GL Manager

Manual Journal Entry is processed monthly for Bonus

accrual by GL Manager

Manual Journal Entry is processed monthly for Commissions Accrual

by GL ManagerStart

Management review and approval by GL Manager of manual journal entries

of accruals relating Employment Payroll (unused vacation, bonus, commissions)

END