{"id":10890,"date":"2019-11-15T11:45:31","date_gmt":"2019-11-15T19:45:31","guid":{"rendered":"https:\/\/www.microsoft.com\/insidetrack\/blog\/?p=10890"},"modified":"2023-06-16T13:33:12","modified_gmt":"2023-06-16T20:33:12","slug":"transforming-payroll-processes-with-microsoft-power-automate","status":"publish","type":"post","link":"https:\/\/www.microsoft.com\/insidetrack\/blog\/transforming-payroll-processes-with-microsoft-power-automate\/","title":{"rendered":"Transforming payroll processes with Microsoft Power Automate"},"content":{"rendered":"
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This content has been archived, and while it was correct at time of publication, it may no longer be accurate or reflect the current situation at Microsoft.<\/p>\n<\/div>\n<\/div>\n

Microsoft Power Automate is at the core of a new payroll automation tool created by Microsoft Finance Operations. End-users within the organization used Power Automate and other components of the Power Platform and Office 365 to design a no-code solution to quickly and easily automate off-cycle payroll processing requests. The new solution increased efficiency, decreased cost, and created a platform on which to build future payroll automation.<\/p>\n

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The Global Payroll team within Microsoft Finance Operations needed to replace manual payroll processing that occurred outside of the regular payroll cycle with an efficient, automated process. Global Payroll used Microsoft Power Automate and other cloud-based tools to design a no-code solution\u2014developed and maintained by Finance Operations staff, without the need for technical expertise\u2014to quickly and easily automate off-cycle payroll processing requests. This modern solution empowers our Global Payroll team to monitor payroll requests, provide approvals, and ensure correct payroll payments for all employees. We\u2019ve converted the off-cycle payroll process from manual to fully automated, improving process efficiency by 30 percent, reducing cost by 25 percent, and balancing workloads across the off-cycle payroll process.<\/p>\n

\"The
Figure 1. Process efficiency and cost improvements with Microsoft Power Automate<\/figcaption><\/figure>\n

\u201cMicrosoft Power Automate has truly empowered employees to reimagine processes and deliver greater impact. What used to take months or years to effect change can now be accomplished in a matter of weeks. This project has delivered value from a cost and efficiency perspective while also strengthening our controls environment.\u201d –\u00a0<\/i>Luke Fewel \u2013 General Manager, Global Finance Operations<\/p>\n

Examining Global Payroll at Microsoft<\/h2>\n

The Global Payroll team at Microsoft operates as part of the Finance Operations organization. Global Payroll is responsible for delivering accurate and timely compensation to employees in more than 100 countries and regions. The payroll process is operated by using business and regional guidelines and adhering to statutory regulations within each region that Microsoft operates.<\/p>\n

The regular payroll process is a large part of the Global Payroll team\u2019s responsibility, and the team operates a scheduled payroll cycle based on the payment calendar in each country or region. However, special circumstances often require the team to deliver payments outside of the regular payroll cycle. The process for handling these payments\u2014known as an off-cycle payroll\u2014 is used to process payments in these cases, including, spot bonuses, regular payroll error correction, or an employee\u2019s late hiring.<\/p>\n

Potential for a more efficient process<\/h3>\n

In the past, off-cycle payroll requests came in various forms to the Global Payroll team, including email, internal customer relationship management (CRM) tools, or even paper-based forms. Payroll Service Delivery Managers (delivery managers) in each region were responsible for approving off-cycle payroll requests in their region, in coordination with the Global Process Owner (process owner), a role that oversaw payroll processing. The process followed these steps:<\/p>\n

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  1. An off-cycle request came in via email, CRM, or paper forms to the delivery manager.<\/li>\n
  2. The delivery manager read the request and determined approval status.<\/li>\n
  3. If the payroll provider required additional cost to process the request, the delivery manager forwarded the request to the process owner.<\/li>\n
  4. The process owner approved or rejected the request via email and returned the request to the delivery manager.<\/li>\n
  5. If the request was approved, or if no payment was required, the delivery manager sent the request to the Global Payroll team for processing.<\/li>\n
  6. During and after processing, the delivery manager and the Global Payroll team communicated progress to the parties involved, including the requestor.<\/li>\n<\/ol>\n
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    \"The
    Figure 2. The manual off-cycle payroll process<\/figcaption><\/figure>\n<\/div>\n

    Throughout this process, communication among delivery managers, process owners, the Global Payroll team, and the requesting employee or manager occurred in different formats, including email, CRM, and verbal confirmation. Following well documented procedures and in compliance with strong control requirements, all parties involved were individually responsible for ensuring timely communication, confirming process steps, and following up with anyone involved in the process. This manual process created numerous improvement opportunities, not only from an automation perspective but also in enhancing our controls environment. These opportunities are described below:<\/p>\n