Simply Persistent

Most all my clients have heard, maybe even tired of, my mantra: Simplify, Standardize, Streamline. When it comes to payroll, focusing on these actions can yield great results. They all reduce complexity, which is the enemy of payroll. All good things to do, I hear clients say, but sometimes we just can’t do that for some things.

And that’s a valid point. Sometimes you inherit complexity that is mandated by union contracts, accounting rules, tax or benefits policy. If you can’t simplify them, then work to standardize and streamline them. But don’t take your eye off reducing future complexity in those areas. A client did just that a while ago, and I smiled because they have heard this message from me for a few years now.

A few years ago I helped them with some really complex payroll calculation requirements to support their multiple 401k plans. I won’t get into the detail, but it was the most complex I’ve ever seen. Their old payroll system did all that just fine because it had a ton of custom programming code behind it. Doing this with standard SAP/EC Payroll configuration and customization was challenging. But we did it, and it was rocky. It took a while to get it all worked out. I told them – if you could just change this one aspect, it would be much simpler and reliable. Well, the benefit plans and union agreements didn’t allow that so we made the best with what we had.

Fast forward though, and a new group is being added to the 401k plan. The plan owner remembered my advice and simplified the calculation requirements for the new plan. Implementing the new plan was easy. Success! 

Avoiding complexity is a win, even if you can’t change the legacy plans. Keep that in mind and don’t give up!