Customer Story: Payroll Carve Out

Background

The client required wanted to stand-up its global HR processes and systems (20 countries) within 6 months.

Situation

• The Newco was on a 6-month Transition Services Agreement (TSA) with the Parentco across its HR processes.

• Key risk on disruption of Payroll, Benefits and HR Systems services at TSA end.

• New HR team with limited payroll experience.

• Existing Parentco processes were with multiple providers (e.g. multiple external providers + internal payroll teams in some countries).

Objectives

• Successful delivery of the global payroll migration within 6 months, including dummy parallel runs; while legal entities/bank accounts were still being set up.

Approach

• Business Change and Communications approach agreed with the Senior Leadership Team (C-Level), to defer significant payroll changes (e.g. pay increase cycles, bonus) outside the parallel run and cutover window.

• Townhalls held by the CEO to communicate freeze and retrospective pay approach, as part of the overall carve-out update communications. Any exceptional cases dealt with by the HR team.

• Data team onboarded to translate non-English data from legacy systems; and where needed validate data with users to start with clean data.

Outcomes

• All countries migrated to a single provider with dummy parallel payroll run for high volume countries.

• Zero error in payroll with new provider.

Reach out to us at contact@exxelmet.com to know more on how Exxelmet can support your corporate carve-out and separation journey, or book time with our carve-out experts here.