Project Report On Payroll Process
Project Report On Payroll Process
INTRODUCTION
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1.1. COMPANY PROFILE
The Adecco Group, based in Zurich, Switzerland, is the world’s leading provider of HR
solutions. With over 29,000 employees and 5,800 offices, in more than 60 countries and
territories around the world, Adecco Group offers a wide variety of services, connecting more
than 500,000 colleagues with over 100,000 clients every day. The services offered fall into the
We inspire individuals and organizations to work more effectively and efficiently, and create
greater choice in the domain of work, for the benefit of all concerned. As the world‘s leading
provider of HR solutions – a business that has a positive impact on millions of people every year
Our aim is to give everyone involved with Adecco the opportunity to improve their situation, be
We are the world leader in connecting people both globally and locally with the talent they need
We seek those motivated to make change and know that, as partners we can help them to shape
We offer life skills, career progression and specialized expertise. We continually seek new
approaches and we partner with the best trainers. We use technology to create real advantages.
We want associates and clients to truly benefit from working with us and we continually invest to
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Our responsibility is to connect people both globally and locally. To accomplish this, we must be
easily accessible by our clients and associates at all times. We must provide them with a
thorough understanding of how we can work with them and the services that we offer.
We encourage the situation where individuals have greater choice and want to work with a
partner who demonstrates they have the relationships and skills that fit their exact requirements.
We are confident that, as Adecco, we will help to inspire our colleagues, clients and associates to
1.1.2. STRATEGY
The world of work is changing and Adecco is one of the leading forces shaping that change.
There is a growing demand for both flexibility and skills on the part of the workforce. In relation
to our operating business, this results in our two distinct approaches to the market.
know-how and cost leadership. This also means ensuring continuity and nurturing long-term
knowledge amongst our employees enables us to find and provide challenging consecutive
assignments which offer attractive perspectives for career development. In both approaches to the
market, it is our goal to focus on operational excellence, higher specialisation and efficient
delivery models.
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As the global leader in HR services, we are aware that traditional patterns of employment will
continue to evolve in the years to come. We therefore want to encourage the present and future
tomorrow’s challenges with confidence and to join us in shaping the future of the workplace.
People are at the centre of everything we do. This is evident in the relationship between Adecco’s
more than 731,000 internal and external employees, as well as that between our employees and
over 100,000 clients we serve every day. People are the focus of our continued search for
excellence in the provision of our principal offerings: temporary staffing, permanent placement,
People, whatever their culture or background, all aspire to a better life and a more rewarding
future. We inspire individuals and organizations to create greater choice in the world of work, for
the benefit of all stakeholders. As the worldwide leader in HR services, we are conscious of our
staffing businesses, focused on the specific expertise of our employees. In today’s fluid business
environment, Adecco people around the world are helping connect private and public
organizations with the right skills and expertise to fulfill their needs. Matching talent is vital in
We build relationships with talented people around the globe to handle any size of project or
assignment. International companies requiring services provided at multiple locations deal with a
single Adecco partner who has expertise in the relevant field. Our strategy is to develop lasting
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Our success is driven by expertise and passion, networked through a flexible, decentralised
organisation. These are the core elements that have enabled us to build our leading position in the
industry and are the basis for the two-sided market approach we have developed worldwide.
A. General staffing
B. Professional staffing
A. GENERAL STAFFING
General staffing for office and industry jobs is Adecco’s original core business and the
foundation of its reputation over many years. It still accounts for around 73% of the Group’s total
revenues, generating EUR 10.9 billion in 2009. The sector also has considerable growth
potential, which we aim to harness by offering our clients specialized solutions, focusing on
are focusing on making the recruitment process more efficient and responsive. One way we are
meeting these changing needs is to build closer, longer-lasting relationships with motivated
employees, both internal and external, offering continuity through successive placements and
career development.
For more than 50 years, Adecco has been helping businesses develop long-term staffing
strategies and secure the employees best qualified to meet the unique challenges they face. With
our proven experience, extensive resources and expert recruitment solutions, we connect clients
with the people they need, and people with the work they want.
Adecco Office
Adecco Office is the strategic partner for candidates and customers seeking perfectly tailored
clerical staff.
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In order to provide the right combination of personnel and technical skills, we focus on the
Administrative/Clerical
Assistance
Customer Service
Human Resources
Import/Export
Project Management
Purchasing
Secretarial/PA
Our success is based on a good understanding of the needs of clients and external colleagues,
enabling us to make the perfect match. Close ties to our markets and customers enable us to tailor
personnel solutions to changing requirements, meeting clients' individual needs through well-
trained and motivated staff with the right skills for the job. With years of experience in matching
personnel and technical skills, we are able to offer customized office solutions at all levels of an
organization.
Adecco Office offers external colleagues serial assignments at the same client, ensuring
continuity in the relationship. Skills are enhanced through continuous learning in challenging
projects.
Adecco is the world leader in connecting companies with the people they need and providing
Adecco Industrial
Adecco Industrial serves organizations needing workers in areas such as assembly, production,
machine operation and mechanical trades, warehousing, packaging, shipping and receiving,
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Accuracy, dexterity and reliability are all vital to success in the light industrial field, and the
same applies to the business of connecting good workers with good companies. That is Adecco’s
business.
For more than 50 years, we have been helping businesses develop long-term staffing strategies
and secure the most highly qualified employees to meet changing needs in evolving markets.
In many countries, Adecco has developed specialized solutions for specific industries such as
aerospace, automotive, construction, transport and logistics and many more. All the sectors
where we know that our clients and colleagues are looking for a specialized service.
We pay particular attention to safety at work, organizing training sessions for our external
colleagues and constantly raising awareness among organizations and individuals alike.
With our long experience, extensive resources and expert recruitment process, we are the world
leader in connecting companies with the people they need and providing people with the work
they want.
B. PROFESSIONAL STAFFING
In a volatile and challenging labour market, there are pressures as well as incentives for people to
adopt so-called "portfolio careers", acquiring a versatile set of skills that will fit different
situations and requirements. Many individuals value a supportive and highly informed partner
who can provide guidance on training and help them find the right job at the right time.
We aim to build relationships that look beyond the immediate needs of placement and
recruitment, to retain and develop the talents of our colleagues in their interest and ours. At the
same time, we want to gain and retain the loyalty of clients by delivering customized solutions
and the expertise they need – when and where they need it. We call this approach "experts talk to
experts".
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This approach also enables us to concentrate and distribute industry insight, best practice and
new initiatives, and to take full advantage of the local depth and global reach of our worldwide
organization. The Professional Business Lines complement our established business in Office
Adecco Worldwide
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Adecco India
focus on Executive Search, Recruitment, Training & Learning and Temporary Staffing services
to client organizations. With a national presence in 40 branches across India and the Middle East,
quality
- IT Enabled Services
- Information Technology
Adecco Services
a) Recruitment Solutions
b) Staffing Solutions
c) Professional Staffing
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e) Assessment Solutions
g) Managed Services
a) Recruitment Solutions
Recruitment is a defining activity for both, companies as well as, candidates. For companies, it
sets the pace and creates the operational horsepower for growth. For individuals, it defines the
quality of life.
Adecco India, a market leader in specialist recruitment services, provides tailor- made
recruitment solutions across verticals, with a branch network that has extensive geographic
coverage in India. Thorough research and accurate mapping of interests of both, our clients, as
help enhance the client’s human capital on one hand, and on the other, we help individuals
Sectors:
Information Technology
IT Enabled Services
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Service Offerings
Contingency Recruitment
This is an ongoing recruitment & placement activity to client organisations. We do a search for
candidates through our internal, extensive and robust search engine HireCraft, referrals and
marketing activities. Resulting from the search, candidates with the right skill, knowledge,
experience and attitude are short listed. Details about the position and client’s interest are then
discussed with the short listed candidates further to which, an interview is organised between the
Turnkey Staffing
This is a service offering the right skill at the right time to fulfill a project or a position. It
addresses the needs in all the levels- junior, middle and senior management.
Cross-border Recruitment
This offering introduces professionals with the required background to meet particular client
We manage the entire recruiting/ hiring process from job profiling through the on-boarding of the
new hire, including staff, technology, method and reporting for a client organisation. A properly
managed RPO will improve a company's time to hire, increase the quality of the candidate pool,
b) Staffing Solutions
People are the most powerful assets of a company and the ability to choose the right people is
most strategic for any company, today. Companies across the globe lay critical emphasis on their
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human resources and in the process, newer methods have evolved to enable them to get the right
Need to contain headcount, seasonal increase in business, need to lower employment costs and
demand for niche skill sets are some of the underlying reasons that have made companies opt for
temp staffing. Today, “HR Outsourcing”, also known as Temporary Staffing, has become a
The Staffing Solutions division of Adecco India, is a leading provider of end to end solutions in
temporary staffing.
Service Offerings
Recruitment Support
Seamless Migration
Structured On-boarding
Associate Training
Payroll Management
Compliance
Customised Solutions
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Client Mix
We have over 64,000 associates, across 400 districts that are serviced through Adecco’s presence
in 30cities/ towns.
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c) Professional Staffing
Today, companies are increasingly depending on specialised manpower services to meet their
short-term & long-term objectives. With "specialised focus" being the mantra of today’s hiring,
Adecco India’s Professional Staffing arm locates, selects, screens and mobilises talent in the
Technical & IT Space- wherever and whenever you need it. Our industry-specific focus allows us
to develop a depth of experience, expertise, and connections in the Professional Staffing space.
Service Offerings
Technical Staffing
IT Staffing
Technical Staffing
Industry Segments
o Engineering R&D
o Chemicals
o Petrochemicals
o Refinery
o Power/ Energy
o Infrastructure
IT Staffing
o Network Engineering
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o Project Management
o System Administration
o Technical Documentation
Lee Hecht Harrison is able to offer scalable competency enhancement solutions to corporate and
business houses to improve retention, productivity & performance. Our targeted approach
focuses on key positions, functions and individuals whose engagement and retention are critical
to the delivery of organizational results. We design and deliver both Functional & Behavioral
Trained over 30,000 participants from over 260corporates and business houses across
India
Development Division
The LHH Customer Retention- repeat assignments from most of our clients
Domains of Expertise
Career Transition
Leadership Consulting
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Workforce Solutions
Competency Mapping
Business Simulations
Behavioural Training
Functional Training
Leadership Training
Executive Coaching
Train-the-Trainer Workshops
Approach
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Methodology
Our Solutions are tailor-made and customized based on the ADDIE Model
e) Assessment Solutions
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Adecco provides a host of proven & tested Assessment tools to both individuals and groups to
Our Assessment tools serve as a talent management platform that provides in-depth assessment
Assess Self
Assess Team
Assess Managers
Assess Development
Assess Successor
Being the world’s largest and India’s No. 1 end-to-end HR Services Company, it gives us the
desired edge to provide seamless end-to-end Payroll Management Services. Leveraging on our
experience and expertise in payrolling 64,000+ associates and with a large pan- India presence
across 30 key cities/ towns, we have the resources to serve customers from every corner of the
country.
Payroll Processing
Payroll Reconciliation
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Gross-to-net processing
Key Capabilities
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o Overall
Payroll Process
Standard Outputs
Reports
Employee
o Online access for pay slip, Income Tax computation & reimbursements
Employer
o ESI - Monthly Contribution details and data for half yearly returns
deduction
Other Reports
o Pay Register
o Journal Voucher
o Loan Register
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Data Security Measures
o Different levels of Security can be defined at different levels namely User Access
Control
o View, Print, Modify, Add and Delete Scheduled data base backup system with full
Process capability - Multiple market segment Adecco Reach - presence across 30 cities/
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1.1.7. ADECCO COLLABORATIONS
A. ADECCO – TISS
Adecco and Tata Institute of Social Sciences (TISS) MoU to establish a research and policy
located at the TISS campus in Mumbai. The joint programme is to analyze and understand
growth trajectories in the Indian economy, the character of labour force and to bring out the
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B. ADECCO – NIIT
Adecco SA, through its wholly-owned subsidiary Ajilon Holding Europe BV & NIIT
entered into a joint venture to deliver world-class application software development and
The joint venture will leverage the competencies of both organizations—it will support Adecco’s
newly-founded IT Business Line with its global client base. NIIT Technologies will create and
Adecco Support Centre, an exclusive contact centre, reachable from 8 am to 8 pm, 5 days a
week, is a one-stop solutions hub to address queries and provide solutions to both, our customers
as well as associates. The ceaseless focus of Adecco Support Centre will be to add smiles to our
support system- customers & associates, in our endeavor to become a proactive solutions
provider.
With this initiative, Adecco aims to ensure total customer and associate satisfaction.
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CHAPTER 2
ORAGANIZATIONAL STRUCTURE
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2.1 ORAGANIZATIONAL STRUCTURE
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2.3. BRANCHES IN INDIA
SOUTH NORTH
Bangalore Chandigarh
Mysore Lucknow
Coimbatore Gurgaon
Hyderabad Bhopal
Cochin Rudrapur
Visakhapatnam Jaipur
Vijayawada Noida
Ranipet Baddi
Ludhiana
Varanasi
Udaipur
Raipur
EAST WEST
Jamshedpur Mumbai
Guwahati Pune
Kolkata Ahmedabad
Patna Goa
Bhubaneswar Nashik
Siliguri Aurangabad
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CHAPTER 3
PAYROLL MANAGEMENT
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Human Resource is the most vital resource for any organization. It is responsible for each and
every decision taken, each and every work done and each and every result. Employees should be
managed properly and motivated by providing best remuneration and compensation as per the
industry standards. The lucrative compensation will also serve the need for attracting and
3.1 COMPENSATION
the organization. It is an organized practice that involves balancing the work-employee relation
part of human resource management which helps in motivating the employees and improving
organizational effectiveness.
Compensation systems are designed keeping in minds the strategic goals and business objectives.
Compensation system is designed on the basis of certain factors after analyzing the job work and
responsibilities.
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Components of a compensation system are as follows:
Compensation provided to employees can direct in the form of monetary benefits and/or indirect
in the form of non-monetary benefits known as perks, time off, etc. Compensation does not
include only salary but it is the sum total of all rewards and allowances provided to the
employees in return for their services. If the compensation offered is effectively managed, it
Direct Compensation
Basic Salary
Salary is the amount received by the employee in lieu of the work done by him/her for a certain
period say a day, a week, a month, etc. It is the money an employee receives from his/her
Organizations either provide accommodations to its employees who are from different state or
country or they provide house rent allowances to its employees. This is done to provide them
Organizations provide for cab facilities to their employees. Few organizations also provide
These allowances are provided to retain the best talent in the organization. The employees are
given allowances to visit any place they wish with their families. The allowances are scaled as
Medical Reimbursement
Organizations also look after the health conditions of their employees. The employees are
provided with medi-claims for them and their family members. These medi-claims include
Bonus
Bonus is paid to the employees during festive seasons to motivate them and provide them the
social security. The bonus amount usually amounts to one month’s salary of the employee.
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Special Allowance
Special allowance such as overtime, mobile allowances, meals, commissions, travel expenses,
reduced interest loans; insurance, club memberships, etc are provided to employees to provide
them social security and motivate them which improve the organizational productivity.
Indirect Compensation
Indirect compensation refers to non-monetary benefits offered and provided to employees in lieu
of the services provided by them to the organization. They include Leave Policy, Overtime
Policy, Car policy, Hospitalization, Insurance, Leave travel Assistance Limits, Retirement
Leave Policy
It is the right of employee to get adequate number of leave while working with the organization.
The organizations provide for paid leaves such as, casual leaves, medical leaves (sick leave), and
Overtime Policy
Employees should be provided with the adequate allowances and facilities during their overtime,
Hospitalization
The employees should be provided allowances to get their regular check-ups, say at an interval of
one year. Even their dependents should be eligible for the medi-claims that provide them
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Insurance
Organizations also provide for accidental insurance and life insurance for employees. This gives
them the emotional security and they feel themselves valued in the organization.
Leave Travel
The employees are provided with leaves and travel allowances to go for holiday with their
families. Some organizations arrange for a tour for the employees of the organization. This is
Retirement Benefits
Organizations provide for pension plans and other benefits for their employees which benefits
them after they retire from the organization at the prescribed age.
Holiday Homes
Organizations provide for holiday homes and guest house for their employees at different
locations. These holiday homes are usually located in hill station and other most wanted holiday
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spots. The organizations make sure that the employees do not face any kind of difficulties during
Flexible Timings
Organizations provide for flexible timings to the employees who cannot come to work during
organizational productivity.
Unless compensation is provided no one will come and work for the organization. Thus,
Salary is just a part of the compensation system, the employees have other psychological
The most competitive compensation will help the organization to attract and sustain the
employees that are aligned with the business goals and objectives. In today’s competitive
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scenario organizations have to take special measures regarding compensation of the employees
so that the organizations retain the valuable employees. The compensation systems have changed
Payroll refers to the administration of employees' salaries, wages, bonuses, net pay, and
deductions. It consist of the employee ID, employee name, date of joining, daily attendance
record, basic salary, allowances, overtime pay, bonus, commissions, incentives, pay for holidays,
vacations and sickness, value of meals and lodging etc. There are some deductions such as PF,
Payroll is administered on monthly basis and annual basis. While administrating the monthly
payroll basic salary, HRA, conveyance, and other special allowances such mobile, etc are
considered. There are some deductions which are provident fund (12%) of the salary, taxes and
other deductions.
deducted only where applicable. Dearness Allowance and House rent allowance is provided at a
fixed rate stated by the employment law. Provident fund is deducted from the gross salary of
employee on the monthly basis as per the employment law, which is provided later to the
employee. Organizations also contribute the same amount to the provident fund of the employee.
Annual payroll consists of leave travel allowances, incentives, annual bonuses, meal
Allowances, incentives, bonuses and reimbursements are based on organizational policies. Some
organizations provided the allowances on a fixed rate say 10% or 12% of the basic salary. Some
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3. 3. PROCESSING OF PAYROLL
Payroll process typically functions, using a payroll supplier, an in-house payroll process assisted
descriptions also include flowcharts of each process and coverage of the exact controls that are
most useful for each situation. Additionally, the chapter covers the types of documents used to
set up a new employee in the payroll system, how to organize this information into a personnel
folder, and how to process changes to employee information through the payroll system
The next three sections describe how the payroll process flows for specific types of system
outsourced payroll, in-house computerized payroll, and in-house manual payroll. In this section,
specific payroll system, in order to show the general process flow. Though some of these steps
will not apply to each of the processes noted in later sections, it gives a good feel for how a
a) Set up new employees. New employees must fill out payroll-specific information as part of
the hiring process, such as the W-4 form and medical insurance forms that may require
payroll deductions. Copies of this information should be set aside in the payroll department in
b) Collect timecard information. Salaried employees require no change in wages paid for each
payroll, but an employer must collect and interpret information about hours worked for
nonexempt employees. Having employees scan a badge through a computerized time clock,
c) Verify timecard information. Whatever the type of data collection system used in the last
step, the payroll staff must summarize this information and verify that employees have
recorded the correct amount of time. This typically involves having supervisors review the
information after it has been summarized, though more advanced computerized timekeeping
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d) Summarize wages due. This should be a straightforward process of multiplying the number
overtime wages, shift differentials, bonuses, or the presence of a wage change partway
e) Enter employee changes. Employees may ask to have changes made to their paychecks,
typically in the form of alterations to the number of tax exemptions allowed, pension
deductions, or medical deductions. Much of this information must be recorded for payroll
processing purposes, since it may alter the amount of taxes or other types of deductions
f) Calculate applicable taxes. The payroll staff must either use IRS-supplied tax tables to
this information. Taxes will vary not only by wage levels and tax allowances taken but also
by the amount of wages that have already been earned for the year-to-date
g) Calculate applicable wage deductions. There are both voluntary and involuntary
deductions. Voluntary deductions include payments into pension and medical plans, while
involuntary ones include garnishments and union dues. These can be made in regular
amounts for each paycheck, once a month, in arrears, or prospectively. The payroll staff must
also track goal amounts for some deductions, such as loans or garnishments, in order to know
when to stop making deductions when required totals have been reached
h) Account for separate manual payments. There will inevitably be cases where the payroll
staff has issued manual paychecks to employees between payrolls. This may be caused by an
incorrect prior paycheck, an advance, or perhaps a termination. Whatever the case, the
amount of each manual check should be included in the regular payroll, at least so that it can
be included in the formal payroll register for reporting purposes, and sometimes to ensure
that the proper amount of employer-specific taxes are also withheld to accompany the
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i) Create a payroll register. Summarize the wage and deduction information for each
employee on a payroll register, which can then be used to compile a journal entry for
inclusion in the general ledger, prepare tax reports, and for general research purposes. This
systems.
j) Verify wage and tax amounts. Conduct a final cross-check of all wage calculations and
deductions. This can involve a comparison to the same amounts for prior periods, or a general
check for both missing information and numbers that are clearly out of line with expectations.
k) Print paychecks. Print paychecks, either manually on individual checks or, much more
commonly, through a computer printer, with the print outs using a standard format that
itemizes all wage calculations and deductions on the remittance advice. If direct deposits are
l) Enter payroll information in general ledger. Use the information in the payroll register to
compile a journal entry that transfers the payroll expense, all deductions, and the reduction in
m) Send out direct deposit notifications. If a company arranges with a local bank to issue
payments are to be sent and the amounts to be paid must be assembled, stored on tape or
n) Deposit withheld taxes. The employer must deposit all related payroll tax deductions and
employer-matched taxes at a local bank that is authorized to handle these transactions. The
IRS imposes a rigid deposit schedule and format for making deposits that must be followed in
employees, with proof of identification required; this is a useful control point in larger
companies where the payroll staff may not know each employee by name, and where there is,
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therefore, some risk of paychecks being created for people who no longer work for the
company
p) Issue government payroll reports. The government requires several payroll related reports
Calculation of gross salaries and deductible amounts is a tedious task which involves risk. Some
of the organizations use the traditional manual method of payroll processing and some go for the
advanced payroll processing software. An organization opts for any of the following payroll
Manual payroll system is the traditional payroll system which involves pen and ink, adding
machine, spreadsheet, etc instead of computers, software and other computerized aids. The
process was very popular when there were no computerized means for payroll processing.
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Now-a-days it is only few small scale organizations in the remote areas that use the manual
payroll. Sometimes the construction industry and manufacturing industry also use the manual
payroll systems for the contractual labour, as theses contracts are on daily/weekly basis.
There is full control in the hands of owner. But the process is tedious, time consuming and risky
3.3.2. ACCOUNTANT
responsible for all the activities related to payroll accounting. He/she has the sound knowledge of
The process adds costs to the organization. It involves paying someone who is responsible for
calculating the salaries of others. The financial control regarding salary goes in the hand of
accountant.
In today’s computerized environment, payroll system has also developed itself into automated
software that performs every action needed by the payroll process. It helps in calculating the
payable amounts and deductions very easily. It also helps in generating the pay slips in lesser
time. Automated calculations result in no errors. Data is validated automatically by the software.
It needs professionals to make use of the software for its efficient working.
Payroll outsourcing involves a third party (an outsourcing company) in the calculations of
salaries and deductions. The outsourcing organization is responsible for all the activities of the
payroll accounting. It saves time and cost for the organization. If there is more number of
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employees (say more than 900-1000) in the organization, payroll outsourcing would be very
much beneficial.
The data is provided to the consultants/outsourcing firms. The various payroll functions
Outsourcing industry is growing at a higher rate. HR outsourcing helps the HR professionals free
themselves from the daily routine work and take part in the strategic level processes.
Organizations really do not take HR as a strategic function; it is merely treated as paper work
division. Therefore they want to reduce the cost being spent on HR activities.
In India payroll outsourcing is one of the HR processes and is being outsourced since 1997.
Payroll outsourcing involves an external organization performing all the activities related to
Outsourcing organizations strive for providing cost saving benefits to their clients. The
organizations use its marketing division thoroughly to acquire more number of clients and retain
them. Payroll outsourcing does not provide much cost reduction but it yield in high quality. Since
compensation outsourcing requires lot of market survey and industry knowledge, it is not easy
for an organization to carry the tasks with its operational business activities
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Figure: Benefits of Payroll Outsourcing
Outsourcing has benefited not only the service providers but also organizations and economy of
the country. It enables the management to focus on the core competencies and strategic planning.
It maintains the confidentiality of the pay package offered to employees as it is an external body
administrating. Organizations do not have to keep the track of law related to salaries and
compensation; it is the outsourcing firm which has to look after it. It offers qualitative results. It
is very much time saving and cost effective. It also offers legal protection as the outsourcing firm
Outsourcing firms enjoys the revenue benefits as the services are being offered to MNCs. Service
exports have caused the economic system to develop more and contribute to GDP.
and high qualitative results. Organizations has to deal with tax filling, they have to adhere to the
sate employment law. These complexities have force the organizations to outsource their payroll
processes. Outsourcing helps an organization to stay focused on the business operations. It results
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in cost-effectiveness and time saving. The organizations are relieved from law regulations and
tax formalities.
Cost-Effective
Payroll outsourcing results in cost effective benefits. A market study has revealed that
Organizations have to set an additional department for the purpose resulting in the
salaries of those responsible for performing the activities of payroll process. It also
includes the cost associated with payroll checks, bank accounts and other charges,
Time Saving
Payroll outsourcing saves a lot of time for management. Time spent on activities
associated with payroll process can now be utilized for more strategic roles. The
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Less Legal Adherence
Organizations are not bound for any legal formalities. Outsourcing companies are
responsible for following rules, regulations and filing the tax returns. They look after
changes in the tax slabs and state jurisdictions. This provides management a great
Profit Generation
Organizations can make use of new opportunities and utilize the time and money on
Error Free
Payroll outsourcing results in error free reports. Internal payroll process is more prone
to errors, but the service providers recruit professionals and they make sure there are
no mistakes.
Qualitative Results
The expertise and technological advancements results in qualitative results. There are
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The survey also reported that 53% of the participant organizations outsource their payroll
processes and from those who outsourced 25% believes that it results in more focused strategic
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CHAPTER 4
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During the course of my training in ADECCO FLEXIONE WORKFORCE SOLUTION PVT.
LTD I was assigned various duties and tasks through which I gained a lot of practical knowledge
about the payroll process prevalent in the organization. I have made an effort to mention all those
duties and tasks performed by me as a trainee and give an idea about the payroll process followed
in the organization.
submitted by the employee at the time of their introduction in the organization. The
Made Salary Slips: Drafted salary slips for the new entrants as well as existing
Verified PF and ESI Forms: verified the mandatory and compulsory clauses to be filled
by the employees in their PF and ESIC forms and accordingly scrutinized them.
Made MIS Reports: recorded and maintained employee information for recruitment and
Sent Invoices: sent invoices to various clients for receiving due payments and sent
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Verified Wage Entries: various additions and deductions in the wage ledger were
Prepared Pay cheques: the salaries and wages which were paid to the employees
Prepared Appointment Letters: the appointment letters issued to the new entrants were
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CHAPTER 4
RESEARCH METHODOLOGY
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The research work done for this report can be divided into following parts:
In depth interviews and observation technique: The major source of information has been the
information derived using in-depth interview technique. The professionals from the leading
staffing companies were interviewed and their expert opinion and viewpoints have been used as
Secondary data: The information available on the internet has been other major source. Online
articles, blogs and reports have been particularly made use of.
The expert opinion of the professionals associated with the staffing industry, payroll process
A structured questionnaire shall serve as the research instrument for data collection. Discussions
with the different officials in Adecco shall provide useful inputs in the form of to achieve the
objective of study.
should draw definitive conclusions only with extreme caution. Exploratory research is a type
of research conducted because a problem has not been clearly defined. Exploratory research helps
determine the best research design, data collection method and selection of subjects. Given its
fundamental nature, exploratory research often concludes that a perceived problem does not
actually exist.
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5.4. SOURCES OF DATA
Primary Data: Primary data are collected with the help of questionnaire, interviews and
observations.
Secondary Data: Secondary data are collected from company website, Boucher, HR
books.
This study gave us an insight that at what level Adecco has its reach to the general public.
This study will help to know the current business potential for the consultancy. There is
tough competition throughout Jaipur. Public interaction helped us to know what employee
want.
Sample size was very small, and area of research was restricted to Jaipur only. So it cannot
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5.7.1. Save Weeks of Time
Axia Checklists enable you to specify your new HR and Payroll systems requirements, RFI’s,
RFP’s much faster than traditional methods. Virtually all the functional systems requirements are
listed - all you do is score those needed. You don’t have to think up your requirements from
scratch.
No matter how complex your future HR and Payroll systems needs, the Checklists can help you
to be more systematic and thorough when gathering or specifying your requirements, enabling
you to complete your ‘user needs / specification / RFI / RFP’ in just days.
The HR Payroll Systems Checklists have been carefully researched to cover virtually all
functional system requirements, listing 880+ system wide, operations, technology and support
functions, 2020+ HR functions, 1290+ Payroll functions, plus 460+ business analysis and
overview criteria (in the Corporate version). They are based on UK and general HR Payroll
systems with additional country specific criteria for USA, Canada, Australia and New Zealand.
The Checklists will stimulate your thoughts, give you ideas and make you aware of what the
Written in Microsoft Excel, any additional requirements can easily be included, amendments
made and criteria not needed can be deleted. You have complete control.
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allowing you to work the way you want to - either on screen, on paper, or a mix of both
providing space and flexibility within the Checklist, to enable vendors to respond to each
of your requirements
including a pre-built format for evaluating and scoring vendor responses - to enable you
These Checklists are specifically designed for you to use yourself, without needing to
orderly, structured way. When used as part of an RFI or RFP, they enable prospective vendors to
respond to your specific needs without confusion, in a standardized format. And hence ensure an
easy and impartial comparison of proposals and identification of the best solutions.
small medium and large size organizations (with turnovers from £5m to £500m),
including:
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5.7.6. CHECKLIST IMPARTIALITY
The Checklists are totally impartial and have no bias towards any HR or Payroll software
package or vendor.
If you are planning to replace your HR or Payroll system in the future, you should review these
Checklists. You’ll benefit most, prior to contacting software vendors. As this will focus your
thoughts on your specific needs rather than being side tracked with potentially unsuitable
solutions.
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CHAPTER 6
RECOMMENDATION
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6.1. FINDINGS
All the employee of the HR Department is satisfied with the PAYROLL PROCESS
INFORMATION SYSTEM It is introduced only since last year. They said that it is very
Most of the employees working in Adecco find the performance of HR department is good
but few of them are not satisfied and want even activities to motivate the employees to be
included.
It is found that training after the selection is compulsory for every employee before starting
his/her job. But according to the responses of few employees it was realized that review of
ADECCO gives preference to payroll process as well as it work on recruitment and it provide
placement.
6.2. CONCLUSION
This presents the summary of the study and survey done in payroll process in ADECCO
FLEXIONE WORKFORCE SOLUTION PVT.LTD. conclusion is drawn from the study and
survey of the company regarding the payroll process. No source is good or bad in itself in all
circumstances and for all employees. No single of payroll process can suit all the companies for
filling up the posts of different nature and at different times. Most of the employees were
satisfied but changes are required according to the changing scenario as payroll process has great
impact on the working of the company as a fresh blood, and also impact on clients.
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6.3. RECOMMENDATIONS
Both the sources of payroll internal as well as external should be given equal importance.
The company should provide induction and orientation program after the process of selection
of employees.
Time Management is very essential and it should ignored at any level of the process.
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BIBLIOGRAPHY
BOOKS:
C.R Kothari, Research Methodology Methods and Techniques, Second Revised Edition,
WEBSITES:
www.adecco.com
www.google.com
www.scribd.com
www.adeccoworldwide.com
www.citehr.com
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ANNEXURE 1
QUESTIONNAIRE
3. Is the original pay rate authorized in writing and subsequent amendments properly approved?
5. Is there a periodic check by independent staff, comparing the payroll and personnel records?
6. Is access to the payroll and personnel records, whether manual or computerized, adequately
controlled?
7. Are the number of employees, amounts paid, and allowances and deductions, reconciled from
10. Do procedures ensure staffs leaving the company are cancelled from the payroll?
12. Are proper provisions made for leave pay and EOSB and are these provisions periodically
reconciled?
16. Are new employees provided the necessary information and forms to have their checks
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ANNEXURE 2
63
ANNEXURE 3
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ANNEXURE 4
012/08/2010
Mr
Dear
Letter of Employment
We are pleased to offer you employment in our organization Adecco Flexione Workforce
Solutions Limited, situated at UDB, Mannat Tower, 3rd Floor,Plot No. 13-14, Cosmo
Colony,Amarpali Marg, Vaishali Nagar,Jaipur (Rajasthan) (“Company”) as (“Contract”), on the
following terms and conditions:
1. The term of your employment shall be valid for a period of 12 Months from withstanding
13/08/2010 the project/work/deputation for which you are being employed terminates
before the aforementioned period; this Contract shall be co-terminus with the
project/work.
3. Details of your salary break up with components are as per the enclosure attached
herewith.
4. This contract shall be terminable by either party giving seven day’s notice in writing or
salary in lieu of notice, to the other party.
5. You will, with effect from 13/08/2010 deputed by the Company to work at the client’s
office/ premises at any of their locations, either onsite or offshore.
6. You will be governed by the policies of the client's organization with respect to leave and
holidays.
In addition, to the terms of appointment mentioned above, you are also governed by the standard
employment rules of the company, which are attached along with this letter. The combined rules
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and procedures as contained in this letter and the annexure will constitute the standard
employment rules and you are required to read both of them in conjunction.
Here’s wishing you the very best in your assignment with us and as a token of your
understanding and accepting of the standard terms of employment, you are requested to sign the
duplicate copy of this letter and return to us within a day.
(Authorised Signatory)
Enclosures: - (i) Compensation sheet; (ii) Standard Terms of Employment
I hereby accept the above-mentioned terms and conditions.
Name: ______________________ Signature: ________________ Date: ___________
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ANNEXURE 5
Compensation Sheet
Name :
Designation :
Less:
Deduction:
Employees Contribution to PF
Employees Contribution to ESI
Take Home :
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