The Holy Grail of Global Payroll

How Microsoft Found It

Victor Garcia Muñoz

Mission: Empower every person and every organization on the planet to achieve more

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Microsoft is a complex multinational company

107 countries 163 legal entities

114,000 employees

Employees working in: Product research & development

Sales & marketing Product support & consulting Manufacturing & distribution General & administration

FinOps assessment of current payroll processes finds a lack of consistency, ineffective governance and

an excessive number of suppliers leads to data problems and control & compliance risks

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Non-standardised

Process and

Ineffective

Governance

Data Challenges

Data handled locally -- prone to errors

Lack of data completeness checks before processing payroll

Different dates and payouts drive different validation requirements

Privacy Risk

400 different resources manually “touching” payroll - increase risk of error and dissatisfaction

Inconsistent approach to management of sensitive data (physical and electronic) – inadequately protected

Inconsistent

Controls

Controls not designed to cover all global and country- specific risks

Night job/contingent staffing: Varying levels of expertise / skill increase risk of incorrect transactions

Inconsistent vendor controls

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More than 50 separate vendors servicing 107 countries

Inconsistent vendor management

Supplier spread: No commercial leverage or global governance

The Case for Change

Global Payroll

Management Global Management

Payroll Data

Administration

Global

Managed

Governance

Payroll Inputs Employee experience/ Queries

Governance/Controls

End-to-end process coverage with minimal overlap

Microsoft + Accenture + three payroll suppliers

Payroll

Processing Asia LATAM MEA CEE WE India 22 Big Subs

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Payroll Processing

The Delivery Model

Point of Contact/

Relationship Management

Service Delivery &

Management

APC - Assistant Payroll Consultant - Accenture Main point of contact and the first escalation point for delivery of the Accenture multi-supplier

management, payroll enquiry and payroll data management services

PSDM - Payroll Service Delivery Manager - Microsoft More delivery-focused - secondary point of contact

Second escalation point for the end-to-end payroll service delivery

Process Alignment &

Compliance Management Continuous Improvement

& Change Control

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Key Impacts on Roles

Monitoring Accenture Delivery

at Country Level

Responsible for multiple subsidiaries

to reinforce global controls

Support Subsidiaries

Assess and Communicate

Non-standardised

Process and

Ineffective

Governance

Data

Inaccuracies

Privacy Risk

Inconsistent

Controls

Global

Standardization

& Governance

Data handled centrally, protected by central controls

Standardized performance measurement approach

Global governance structure based on proactive / standardised controls & testing

Aggregate Global & Regional visibility through governance structure

Data

Quality

Increase efficiency and quality of outputs

Enhance flexibility to adapt to changes

Unified dates and pay outs

Minimal localisations - reduce risk, increase data accuracy

Risk

Mitigation

25 operational controls - provide reduced risk and greater control over payroll processes

Reduce the number of individuals involved – Unified skills /expertise

Clarification of roles related to Payroll - HR vs F&A

Controls &

Compliance

7 key global controls – ensure consistent quality

Controls designed to cover global, country-specific risks

A controls structure - meet future regulation requirements

Standard processes more controllable and auditable

Before

Consolidation from 50+ payroll suppliers to 3 4 regional data management delivery centres Stronger and simplified global governance Leverages business volume

AND…

Improved employee experience

Talent Released - focus on core competencies

Neutral cost impact

By standardising/streamlining payroll operations globally, the solution improves efficiency, increases employee satisfaction and ensures payroll processes are consolidated, harmonised and under control. After

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Results:

Global Payroll Service Delivery

Buenos Aires

Prague

Mumbai

Dalian

Five Pillars

of Operational Effectiveness

Global quality, assurance, training team drives consistency – new monthly payroll review framework

99.81% data input accuracy

US$5 million saved in

overpayments, underpayments

Power BI Dashboard for timely

and detailed data related to each

subsidiary

Daily and weekly communications

provide visibility on performance

97.8% inquiry resolution within

SLA timelines

4.21/5 customer satisfaction –

87% of respondents satisfied

End-to-end service reporting

4,400 processes accessed – 0.2% localizations – quality service with new team leads, regional APCs

Senior leadership buy-in

Defined approach and clarity on outcomes

Rigorous knowledge transfer

Communicate regularly and report to stakeholders

in timely manner

Collaboration with upstream partner

Make employee

experience a top priority

Key Steps to Our Success

Thanks to OnePayroll, we have a strong payroll process that is closely monitored

to ensure payroll is delivered to the highest level of quality

Our “What is OnePayroll” VIDEO offers an overview of OnePayroll Global!

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Employee Experience