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3Degrees Case Study

3Degrees' Payroll Transformation with activpayroll

Highlight
Annual cost saving of $100,000
Industry
Renewable Energy
Region(s)
EMEA
Service(s)
Payroll
330+ employees
5 countries
12600+ payslips a year

Situation

Jenny Chaney serves as the Associate Director of People Operations for 3Degrees, a global company dedicated to renewable energy and transport decarbonisation. Her role encompasses various responsibilities, including talent and operations management, HR business partnerships, compensation, payroll, benefits, total rewards, onboarding, offboarding, employee lifecycle, employment law, and employee relations. Having been in this role for almost two years, with prior experience as a senior HR business partner for four years at 3Degrees, Jenny is well-acquainted with the intricacies and challenges of her position.
 
3Degrees operates in seven countries and is currently expanding into the APAC region, beginning with Singapore. This expansion introduced the use of an employer of record (PEO) for the Singapore operations, while activpayroll managed the payroll for the other countries. Ensuring that employees receive their pay and benefits on time is the cornerstone of Jenny's role. Her team tracks key metrics such as timely and accurate payroll and benefits distribution, with a strong focus on deploying enhanced benefits to stay competitive in the market while maintaining fiscal responsibility. This year, Jenny's team is particularly focused on managing operational expenses wisely.
 
The company structure at 3Degrees is unique, with Jenny and a payroll administrator from the accounting team working closely together to ensure payroll accuracy. Although the accounting department is responsible for processing payroll, any issues ultimately fall under Jenny's jurisdiction, emphasising her pivotal role in the process.

Complication

Prior to adopting activpayroll, 3Degrees relied on a different HRIS system that lacked support for global payments. At that time, the company operated in five countries, each using different payroll providers, necessitating coordination with five separate entities to run payroll. This setup became increasingly unmanageable as the company expanded. The process involved different pay dates and numerous points of contact, which was particularly challenging during staffing changes or employee onboarding.

Employees struggled to understand how their pay was calculated and were often confused about tax deductions, leading to significant frustration. This complexity was compounded by the need to ensure compliance with various payroll regulations in different countries, a task that 3Degrees was not fully equipped to handle. The company depended on its partners to manage these complexities, but inconsistencies arose due to the involvement of multiple payroll providers. This situation highlighted the need for a more scalable and cohesive solution.

As the HR business partner at the time, Jenny was the main point of contact for all employees, from the C-suite to entry-level hires. She frequently conveyed employees' concerns about payroll discrepancies, especially the delay in pay for their counterparts in London. The stress of managing these issues took a toll on the HR team, making it clear that the current system was not sustainable.

Turning point: The transition to activpayroll

The realisation that the existing payroll system was not scalable prompted 3Degrees to seek a new solution. They needed an HRIS that could support global payments or a partner who could manage this aspect effectively. UKG, a large HR company managing their domestic payroll, taxes, and performance management, recommended their global payroll partner, activpayroll. Following the recommendation, 3Degrees conducted a thorough evaluation of different options and demonstrations, revealing that activpayroll was the ideal solution for 3Degrees' needs.

The implementation of activpayroll began in June, with the go-live date for the HR system in August. This transition promised to streamline payroll processes across all countries, providing a centralised solution that would reduce the administrative burden on Jenny and her team. The new system allowed for consistent pay dates, simplifying payroll management and improving the overall employee experience.

One of the critical factors in choosing activpayroll was its ability to offer global payment options and manage the complexities of international payroll regulations. This capability was essential as 3Degrees expanded into new regions, such as APAC, where understanding and complying with local regulations is crucial.

Resolution: Outcomes and impact

The integration of activpayroll into 3Degrees' operations resulted in significant improvements. The new system streamlined payroll processes, ensuring timely and accurate pay for employees across all locations. This consistency reduced the frustration and stress previously experienced by employees and the HR team.

activpayroll's expertise in managing complex payroll regulations was invaluable. The company helped 3Degrees correct non-compliant setups in various countries, ensuring compliance and avoiding potential fines. This support allowed Jenny and her team to focus on more strategic initiatives rather than being bogged down by payroll issues.

The centralised payroll system also enhanced the employee experience by providing a single platform for accessing payroll information, benefits, and other HR-related data. This consistency made employees feel more connected and valued, regardless of their location.

The decision to switch to activpayroll proved to be a cost-effective one for 3Degrees. The streamlined processes and reduced administrative workload resulted in significant cost savings. The HR team was able to eliminate redundant roles, leading to a reduction of one and a half full-time equivalent (FTE) positions, saving the company approximately $100,000 annually.

Despite the initial challenges of integration, the long-term benefits of adopting activpayroll far outweighed the difficulties. The improved payroll accuracy and timeliness, along with the enhanced employee experience, demonstrated the value of the investment. Jenny no longer had to wake up early on Fridays to check if everyone got paid, allowing her to focus on other important tasks.

activpayroll's support in navigating the complexities of international payroll regulations was crucial. The company worked directly with local contacts, saving 3Degrees from the need to hire local attorneys or translators. This expertise ensured that employees were paid correctly and in compliance with local laws, providing peace of mind to Jenny and her team.

One of the aha moments for Jenny was realising how non-compliant and incorrect their previous payroll setups had been in different countries. activpayroll's intervention corrected these issues, ensuring compliance and avoiding potential legal problems. This realisation underscored the importance of having a knowledgeable and reliable payroll partner.

Another significant improvement was the reduction in the administrative workload. With a centralised system, Jenny and her team no longer had to deal with multiple payroll runs or manual data provision. This efficiency allowed them to focus on more strategic HR initiatives, such as enhancing employee benefits and further optimising the use of HR tools like UKG and activpayroll.

The implementation of activpayroll also improved the overall workflow within the HR team. By having a consistent payroll schedule and reducing the need for manual interventions, the team could operate more efficiently. This improvement was particularly evident during the integration phase, where the support from activpayroll and the independent consultant helped ensure a smooth transition.

The integration of activpayroll with UKG was a crucial factor in the success of this transition. Although there were initial challenges, the eventual alignment of these systems provided a seamless flow of data, enhancing the overall efficiency of HR operations. This integration allowed 3Degrees to have a single version of the truth for payroll and HR data, providing valuable insights and analytics.

The support from activpayroll during the integration phase was commendable. Despite some confusion and delays, the company's commitment to ensuring a successful implementation was evident. The project manager played a crucial role in addressing issues and securing the necessary resources to expedite the process.

The addition of an HR business partner in London significantly improved the communication and response time for payroll issues. Previously, the time zone difference between the West Coast and international locations caused delays in addressing payroll concerns. With the new setup, payroll issues were resolved more efficiently, reducing the frustration for Jenny and her team.

The overall impact of activpayroll on 3Degrees' payroll processes was transformative. The company achieved a streamlined and efficient payroll system that met the needs of its growing international workforce. The improved accuracy and timeliness of payroll, along with the enhanced employee experience, demonstrated the value of this investment.

The decision to adopt activpayroll was a strategic move that significantly improved 3Degrees' payroll processes. The centralised system provided a scalable solution that met the company's growing needs, ensuring compliance with international payroll regulations and enhancing the overall employee experience. The support and expertise from activpayroll were invaluable, allowing Jenny and her team to focus on more strategic initiatives and achieve significant cost savings. The success of this transition highlights the importance of having a reliable and knowledgeable payroll partner in managing a global workforce.

“activpayroll was recommended by UKG, and after evaluating different options and demonstrations, it was clear this was the solution we needed”
- Jenny Chaney, Associate Director of People Operations, 3Degrees

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