{"id":2206,"date":"2015-06-08T22:32:52","date_gmt":"2015-06-08T22:32:52","guid":{"rendered":"https:\/\/www.peeriosity.com\/shared-services\/articles\/?p=2206"},"modified":"2022-08-09T08:12:22","modified_gmt":"2022-08-09T08:12:22","slug":"understanding-manual-pay-cycles-in-payroll","status":"publish","type":"post","link":"https:\/\/www.peeriosity.com\/shared-services\/articles\/2015\/06\/understanding-manual-pay-cycles-in-payroll\/","title":{"rendered":"Understanding Manual Pay Cycles in HR Shared Services"},"content":{"rendered":"

Payroll is the one process that by definition impacts every single employee<\/a> in the company.\u00a0 When looking at reducing the cost and complexity of payroll processing, much attention is given to increasing direct deposit rates, using pay cards, and eliminating paper pay advices<\/a>.\u00a0 While all are important, for some companies a very effective approach to reducing the cost and complexity of their Payroll operation<\/a> is to decrease the number of pay cycles, including both regularly scheduled pay cycles and out-of-cycle (or manual) payment runs.<\/span><\/p>\n

Recently, a Peeriosity member at a large global technology company wanted to understand how many out-of-cycle\/manual payment runs other companies perform each week for items like employee terminations, corrections, and special requests.\u00a0 Because exception processing has the greatest likelihood of errors and rework, reducing the volume of out-of-cycle payments can have a big impact on the workload of the Payroll team.\u00a0<\/span><\/p>\n

To get answers quickly from knowledgeable peers, the member used Peeriosity\u2019s iPollingTM<\/sup> to create a question for members, with the real-time posting of poll results and the ability for the member to see immediately who responded, what company and region they represent, with the opportunity to contact individual respondents directly using Peeriosity\u2019s built-in communication tool, Peer MailTM<\/sup>.\u00a0<\/span><\/p>\n

The iPollingTM<\/sup> question examined the frequency of out-of-cycle, manual payment runs.\u00a0 Interestingly, for 32% of companies, an out-of-cycle run is scheduled to take place every workday, with an additional 36% of companies scheduling out-of-cycle runs regularly, but less frequently than daily.\u00a0 At 28% of companies, out-of-cycle runs are not scheduled, with requests processed on an as-needed basis.\u00a0 Here are the details:<\/span><\/p>\n

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While processing outside of the normal payment runs has added cost and complexity, there are opportunities to reduce the volume of out-of-cycle payments, and quite possibly for many, the number of out-of-cycle payment runs.\u00a0 Knowing the underlying business reasons, with clear guidelines and procedures for each approved exception, is an important first step.<\/span><\/p>\n

Here are several of the comments added by iPollingTM<\/sup> participants:
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