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Project Report On Payroll Process

The document provides an overview of Adecco Group, a leading provider of human resources solutions. It discusses the company's vision, mission, strategy, business model, and key services. Specifically: 1) Adecco Group is a Fortune Global 500 company and the world's largest staffing firm, connecting over 500,000 colleagues with 100,000 clients daily across 60+ countries. 2) Its vision is "Better work, Better life" and its mission is to create greater workforce choice and opportunities for all stakeholders. 3) The company's strategy is to focus on flexibility, skills development, and specialized solutions to meet evolving workforce demands in areas like general staffing, professional staffing, and

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81% found this document useful (26 votes)
12K views68 pages

Project Report On Payroll Process

The document provides an overview of Adecco Group, a leading provider of human resources solutions. It discusses the company's vision, mission, strategy, business model, and key services. Specifically: 1) Adecco Group is a Fortune Global 500 company and the world's largest staffing firm, connecting over 500,000 colleagues with 100,000 clients daily across 60+ countries. 2) Its vision is "Better work, Better life" and its mission is to create greater workforce choice and opportunities for all stakeholders. 3) The company's strategy is to focus on flexibility, skills development, and specialized solutions to meet evolving workforce demands in areas like general staffing, professional staffing, and

Uploaded by

Parul Jain
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 68

CHAPTER 1

INTRODUCTION

1
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

broad categories of temporary staffing, permanent placement, outsourcing, consulting and

outplacement. The Adecco Group is a fortune Global 500 company.

1.1.1. VISION AND MISSION

Better work, Better life

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

– we are conscious of our global role.

Our aim is to give everyone involved with Adecco the opportunity to improve their situation, be

it at work, at home, in leisure activities or in life. 

We are the world leader in connecting people both globally and locally with the talent they need

and the work that they want.

We seek those motivated to make change and know that, as partners we can help them to shape

and achieve their personal and professional goals.

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

sustain our position as innovators.

2
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

achieve better work, better life.

1.1.2. STRATEGY

The changing world of work

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.

For positions that require general skills, we offer specialized solutions, focusing on industry

know-how and cost leadership. This also means ensuring continuity and nurturing long-term

relationships with our internal and external colleagues.

Attracting professional skills requires "experts" in our network. Their in-depth professional

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.

3
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

generations to see change as opportunity in myriad forms. We want to invite people to accept

tomorrow’s challenges with confidence and to join us in shaping the future of the workplace.

1.1.3 OUR BUSINESS

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,

secondment, outsourcing, outplacement, training and consulting.

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

global role of helping to shape tomorrow’s workplace for the better.

As a complement to our traditional Office and Industrial businesses, we operate Professional

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

giving individuals and companies a competitive edge.

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

relationships with all our stakeholders.

4
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

industry know-how and efficiency in the process.

Against a background of demographic change and a growing shortage of qualified personnel, we

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

working solutions. We specialize in temporary and permanent placement of administrative and

clerical staff.
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In order to provide the right combination of personnel and technical skills, we focus on the

following business areas (in some countries through specific brands):

 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

people with the work they want.

 Adecco Industrial

Adecco Industrial serves organizations needing workers in areas such as assembly, production,

machine operation and mechanical trades, warehousing, packaging, shipping and receiving,

bindery and fulfillment.

6
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".

7
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

and Industrial services.

 Adecco Human Capital Solutions

 Adecco Sales, Marketing & Events

 Adecco Medical & Science

 Adecco Information Technology

 Adecco Engineering & Technical

 Adecco Finance & Legal

 Adecco Worldwide

Key figures 2009

 Over 28,000 full-time equivalent employees

 Over 500,000 associates on assignment daily

 Over 100,000 clients every day

 Over 5,500 offices in more than 60 countries and territories

8
 

9
10
 Adecco India

Adecco India, headquartered in Bangalore, is a leading end-to-end HR solutions company with a

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,

Adecco is the fastest growing HR Company in India.

 Rapid growth with the largest branch network of 40

 Over 66,000 associates on assignment every day, nationally

 Distinguished list of over 1000 clients across all segments

 Placement of around 4000 candidates per month, across India

 Over 800 trained and specialized consultants to customize your HR solutions

 Consistent investments in Information Technology and infrastructure to upgrade service

quality

 Global resources of Adecco complement local intelligence and delivery ability

 Domain expertise across specific industries

- IT Enabled Services

- Information Technology

- Telecom, Media & Entertainment

- Engineering, Process & Infrastructure

- Consumer Services & Retail

- Banking, Financial Services & Insurance

 Adecco Services

a) Recruitment Solutions

b) Staffing Solutions

c) Professional Staffing

d) Talent Management Solutions

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e) Assessment Solutions

f) Payroll Management Services

g) Managed Services

h) Recruitment Process Outsourcing

a) Recruitment Solutions

Connecting great talent with great opportunities

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

well as, our candidates, is what sets us apart.

As a corporate partner to clients, we source professionals with high intellectual capabilities to

help enhance the client’s human capital on one hand, and on the other, we help individuals

optimise their career choices.

Sectors:

 Information Technology

 IT Enabled Services

 Telecom, Media & Entertainment

 Engineering, Process & Infrastructure

 Consumer Services & Retail

 Banking, Financial Services & Insurance

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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

candidate and the client, to take the position forward.

 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

requirements, from anywhere in the world.

 Recruitment Process Outsourcing

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,

provide verifiable metrics, reduce cost and improve governmental compliance.

b) Staffing Solutions

Permanent solutions for Temporary Staffing

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

13
human resources and in the process, newer methods have evolved to enable them to get the right

people for the right job at the right time.

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

globally accepted norm.

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

 Adecco Support Centre

 Customised Solutions

14
15
Client Mix

We have a good mix of clients from almost all sectors.

Our Associate Mix

We have over 64,000 associates, across 400 districts that are serviced through Adecco’s presence

in 30cities/ towns.

16
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

Adecco Technical provides services to the following Industry segments

o Engineering R&D

o Chemicals

o Petrochemicals

o Refinery

o Oil & Gas

o Power/ Energy

o Infrastructure

 IT Staffing

o Database Design & Development

o Network Engineering

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o Project Management

o Software Engineering/ Programming

o System Administration

o Technical Documentation

o Web Design & Integration

d) Talent Management Solutions

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

training programmes, including MDPs.

 Dynamic Delivery Style- a unique blend of conceptual and experiential learning

 Trained over 30,000 participants from over 260corporates and business houses across

India

 Training modules are built around four frameworks-Managing Self, Managing,

People, Managing Customer and Managing Business

 Courseware Design- customized to suit client needs by an exclusive internal Content

Development Division

 The LHH Customer Retention- repeat assignments from most of our clients

 Continuous Internal Calibration of Trainers- to ensure sustained consistency in

delivery Career Transition Leadership Consulting Workforce Solutions.

Domains of Expertise

 Career Transition

 Leadership Consulting

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 Workforce Solutions

Training Need Analysis


Service Offerings

 Competency Mapping

 Assessment & Development Centers (ADCs)

 Business Simulations

 Behavioural Training

 Soft Skills Training

 Outbound & Outdoor Training

 Functional Training

 Leadership Training

 Executive Coaching

 Content Research & Design - Case Studies, Role Plays,

 Activities & Games

 Train-the-Trainer Workshops

Approach

19
Methodology

Our Solutions are tailor-made and customized based on the ADDIE Model

e) Assessment Solutions

Talent Management now made easier with Assessment Solutions

20
Adecco provides a host of proven & tested Assessment tools to both individuals and groups to

improve productivity and assess training & development needs in organization.

Our Assessment tools serve as a talent management platform that provides in-depth assessment

of individuals/ groups and can be used in the context of:

 Assess Self

 Assess New Hire

 Assess Team

 Assess Managers

 Assess Development

 Assess Successor

f) Payroll Management Services

End-to-end Payroll Management Solutions - now just a call away

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 Statutory Compliance & Reporting

 Employee Query Management

 Tax Calculation & Verification

 Payroll Reconciliation

 Statutory & MIS Reporting

 Employee Self Service Portal

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 Gross-to-net processing

1.1.4. SCOPE OF SERVICES

 Key Capabilities

22
o Overall

 Maintenance of Employee Database

 Payroll Process

 Standard Outputs

 Reports

 Employee

o Pay slip - hard copy/ E-mail

o Quarterly Tax computation sheet - hard copy/email

o Online access for pay slip, Income Tax computation & reimbursements

 Employer

o PF/EPS Contribution details

o PT recovery (State wise and slab wise) - Monthly

o ESI - Monthly Contribution details and data for half yearly returns

o PF-Annual Returns in Form 6A

o Income Tax - Form 16, Form 24 (e-filing) & Form

o 24 Q (Quarterly returns) Labor Welfare Fund recovery details as per statutory

deduction

 Other Reports

o Pay Register

o Net Pay Advice

o Journal Voucher

o Loan Register

23
 Data Security Measures

o Multiple levels of Security can be given

o Data base Administrator controls the Oracle database

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

data as well as client-wise data backup

1.1.5. THE ADECCO ADVANTAGE

 Defined team structure

 Process/ Domain expertise from existing database (64,000+ associates)

 Process capability - Multiple market segment Adecco Reach - presence across 30 cities/

towns pan India

 Structured Technology Solution – increases process capability

 Centralised processing to enable effective control

 Regional SPOC (Specific Point of Contact)

 100% confidentiality of customer’s payroll information is maintained

1.1.6. ADECCO SOURCING METHODOLOGY

24
1.1.7. ADECCO COLLABORATIONS

A. ADECCO – TISS

Adecco and Tata Institute of Social Sciences (TISS) MoU to establish a research and policy

advocacy programme. The Adecco-TISS Labour Market Research Initiative (ATLMRI) is

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

Labour Market Research Annual Report and quarterly updates.

25
B. ADECCO – NIIT

Adecco SA, through its wholly-owned subsidiary Ajilon Holding Europe BV & NIIT

Technologies Limited, a global IT solutions organization headquartered in New Delhi, India,

entered into a joint venture to deliver world-class application software development and

maintenance solutions to Adecco’s clients.

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

maintain a delivery organisation capable of providing services of the highest quality

C. ADECCO’S LATEST INITIATIVE – ASC

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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2.2. ORAGANIZATIONAL STRUCTURE OF HR DEPARTMENT

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2.3. BRANCHES IN INDIA

SOUTH NORTH

 Bangalore  Chandigarh

 Mysore  Lucknow

 Chennai  New Delhi

 Coimbatore   Gurgaon

 Hyderabad   Madhya Pradesh

 Hyderabad  Bhopal

 Cochin  Rudrapur

 Visakhapatnam  Jaipur

 Madurai  Himanchal Pradesh

 Sri Perambadur  Indore

 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

30
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

retaining the best employees.

3.1 COMPENSATION

Compensation is the remuneration received by an employee in return for his/her contribution to

the organization. It is an organized practice that involves balancing the work-employee relation

by providing monetary and non-monetary benefits to employees. Compensation is an integral

part of human resource management which helps in motivating the employees and improving

organizational effectiveness.

3.1.1. Components of Compensation System

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:

3.1.2. Types of Compensation

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

contributes to high organizational productivity.

 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

employer by rendering his/her services          

 House Rent Allowance

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

social security and motivate them to work.


32
 Conveyance

Organizations provide for cab facilities to their employees. Few organizations also provide

vehicles and petrol allowances to their employees to motivate them.

 Leave Travel Allowance

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

per the position of employee in the organization.

 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

health-insurances and treatment bills reimbursements.

 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.

33
 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

Benefits, Holiday Homes.

 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

maternity leaves, statutory pay, etc

 Overtime Policy

Employees should be provided with the adequate allowances and facilities during their overtime,

if they happened to do so, such as transport facilities, overtime pay, etc.

 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

emotional and social security.

34
 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

usually done to make the employees stress free.

 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

35
spots. The organizations make sure that the employees do not face any kind of difficulties during

their stay in the guest house.

 Flexible Timings

Organizations provide for flexible timings to the employees who cannot come to work during

normal shifts due to their personal problems and valid reasons.

3.1.2. Need of Compensation Management

 A good compensation package is important to motivate the employees to increase the

organizational productivity.

 Unless compensation is provided no one will come and work for the organization. Thus,

compensation helps in running an organization effectively and accomplishing its goals.

 Salary is just a part of the compensation system, the employees have other psychological

and self-actualization needs to fulfill. Thus, compensation serves the purpose.

 The most competitive compensation will help the organization to attract and sustain the

best talent. The compensation package should be as per industry standards.

3.1.3. Strategic Compensation

Strategic compensation is determining and providing the compensation packages to the

employees that are aligned with the business goals and objectives. In today’s competitive
36
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

from traditional ones to strategic compensation systems.

3.2 COMPONENTS OF PAYROLL

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,

taxes, loan installments or advances taken by employee.

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.

Figure: Components of Monthly Payroll


37
Deductions such as tax and loan/advances taken by the employee from organizations are

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

vouchers/reimbursements, and medical reimbursements.

Figure: Components of Annually Payroll

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

organizations go for performance based incentives.

38
3. 3. PROCESSING OF PAYROLL

Payroll process typically functions, using a payroll supplier, an in-house payroll process assisted

by computer systems, or an in-house system that is entirely processed by hand. These

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,

we cover the general beginning-to-end processing of payroll, step-by-step, irrespective of the

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

payroll is completed. The steps are:

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

anticipation of its inclusion in the next payroll.

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,

punch a card in a stamp clock, or manually fill out a time sheet.

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

systems can perform most of these tasks automatically.

39
d) Summarize wages due. This should be a straightforward process of multiplying the number

of hours worked by an employee’s standard wage rate. However, it can be complicated by

overtime wages, shift differentials, bonuses, or the presence of a wage change partway

through the reporting period.

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

manually calculate tax withholdings or have a computerized system or a supplier determine

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

amounts deducted for the employee.

40
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

document is always prepared automatically by payroll suppliers or by in-house computerized

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

made, a remittance advice should still be printed and issued.

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

cash to the general ledger.

m) Send out direct deposit notifications. If a company arranges with a local bank to issue

payments directly to employee accounts, then a notification of the accounts to which

payments are to be sent and the amounts to be paid must be assembled, stored on tape or

other media, and sent to the bank.

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

order to avoid penalties

o) Issue paychecks. Paychecks should, at least occasionally, be handed out directly to

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,

41
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

at regular intervals, which require information on the payroll register to complete.

3.4. PAYROLL MANAGEMENT PROCESSES

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

processing methods available.

Figure: Various Payroll Processes

3.3.1. MANUAL SYSTEM

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.

42
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

as it is more prone to errors.

3.3.2. ACCOUNTANT

Accountant is a professional having a degree/diploma course in finance/accountancy. He/she is

responsible for all the activities related to payroll accounting. He/she has the sound knowledge of

accounting principles and globally accepted standards. 

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.

3.1.4. PAYROLL SOFTWARE

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.

3.1.5. PAYROLL OUTSOURCING

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

43
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

undertaken by the outsourcing organizations are as follows:

 Analysis of Payroll records, payroll taxes

 Medical claim processing

 Employee Insurance & Provident fund processing

 Quality Audit procedures & planning

 Significance of Payroll Outsourcing

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

payroll management. Adecco has come up with payroll outsourcing.

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

44
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

is responsible for all the legal matters. 

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.

 Why Payroll Outsourcing

In today’s global competitive environment organizations need to focus on cost-cutting strategies

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

45
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

outsourcing payroll process is cheaper than administrating the process internally.

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,

record maintenance, computerized aids such as payroll software, etc

 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

organizations can focus on their strategic decisions and business operation

46
 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

relief and enables them to focus on business operation.

 Profit Generation

Organizations can make use of new opportunities and utilize the time and money on

new business ventures and generate more profits.

 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

no delays and no errors.

Figure: Reasons for Payroll Outsourcing

47
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

decisions. Most of the organizations agreed that it is cost-effective measures.

48
CHAPTER 4

INTERNSHIP ASSIGNMENTS AND DUTIES

49
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.

4.1. PAYROLL ASSIGNMENTS


Following are the few assignments which I undertook in the organization through which I gained

much needed practical exposure of the organizational culture and practices:

 Verified New Entrants: Checked and verified various documents required to be

submitted by the employee at the time of their introduction in the organization. The

initial documents required included W-4 form, appointment letter, qualification

certificates, pay slips of previous job.

 Made Salary Slips: Drafted salary slips for the new entrants as well as existing

employees of the organization using the payroll information system.

 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

appraisal functions to be undertaken in the employee’s journey in the organization.

 Sent Invoices: sent invoices to various clients for receiving due payments and sent

confirmation after receiving the payments.

50
 Verified Wage Entries: various additions and deductions in the wage ledger were

verified by me in order to ensure justified payments to all the employees.

 Prepared Pay cheques: the salaries and wages which were paid to the employees

through cheques were cross checked before issuing.

 Prepared Appointment Letters: the appointment letters issued to the new entrants were

prepared and drafted according to the predefined standards and criteria.

51
CHAPTER 4

RESEARCH METHODOLOGY

52
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

the basis of this report.

Secondary data: The information available on the internet has been other major source. Online

articles, blogs and reports have been particularly made use of.

5.1. SCOPE OF STUDY

The expert opinion of the professionals associated with the staffing industry, payroll process

forms the basis of this report.

5.2. TOOLS AND TECHNIQUES USED FOR DATA COLLECTION

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.

5.3. TYPE OF RESEARCH

Exploratory Research - It provides insights into and comprehension of an issue or situation. It

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.

53
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.

5.5. UTILITY OF THE STUDY

 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.

5.6. LIMITATIONS OF RESEARCH

 Sample size was very small, and area of research was restricted to Jaipur only. So it cannot

give a fair result.

 Data collected cannot be reliable and accurate.

 Gathering and processing data can be very expensive.

 The collection of data can take a longer time.

 Some ethical and legal constraints related to security of data.

5.7. DATA ANALYSIS AND INTERPRETATION

Requirement- Study of Payroll Process

54
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.

5.7.2. Save Effort

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

latest HR Payroll systems can do.

Written in Microsoft Excel, any additional requirements can easily be included, amendments

made and criteria not needed can be deleted. You have complete control.

The Checklists will save you effort by:

 saving you time gathering or specifying your requirements

 quickly creating the specification or RFI/RFP for issue to software vendors

55
 allowing you to work the way you want to - either on screen, on paper, or a mix of both

(using multiple copies for your own internal use)

 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

to carry out an impartial evaluation of the software / vendor response

5.7.3. Save Money

 These Checklists are specifically designed for you to use yourself, without needing to

employ additional staff or resources.

5.7.4. Reduce Risk of Wrong HR Payroll System Selection

The Checklists provide an industry standard approach to assemble your requirements in an

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.

5.7.5. VERSIONS TO SUIT ALL TYPES OF ORGANISATIONS

 small medium and large size organizations (with turnovers from £5m to £500m),

including:

 commercial companies / businesses and non-profit / government organizations

 HR, Payroll or IT staff, functional specialists, managers, directors

 any person or organization involved with specifying a new HR or Payroll system

56
 5.7.6. CHECKLIST IMPARTIALITY

The Checklists are totally impartial and have no bias towards any HR or Payroll software

package or vendor. 

5.7.7. When to use a Checklist

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.

57
CHAPTER 6

FINDINGS, CONCULSION AND

RECOMMENDATION

58
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

effective for their management and increased in performance also.

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

the training program is required.

ADECCO gives preference to payroll process as well as it work on recruitment and it provide

placement.

Adecco is one of consultancy which recruits employees

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.

59
6.3. RECOMMENDATIONS

 Payroll policies should be followed properly.

 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.

 The HR policy of the company should be clear and specific.

 Time Management is very essential and it should ignored at any level of the process.

60
BIBLIOGRAPHY

BOOKS:

 C.R Kothari, Research Methodology Methods and Techniques, Second Revised Edition,

 Gary Dessler, Human Resource Management, Tenth Edition

 V.S.P. Rao, Human Resource Management

WEBSITES:

 www.adecco.com

 www.google.com

 www.scribd.com

 www.adeccoworldwide.com

 www.citehr.com

61
ANNEXURE 1

QUESTIONNAIRE

1. Is time worked by non salaried staff adequately recorded and authorized?

2. Is leave and absence through sickness properly controlled?

3. Is the original pay rate authorized in writing and subsequent amendments properly approved?

4. Are changes to allowances and deductions 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

one period to the next?

8. Is the calculation of a sample of employee’s net pay periodically checked?

9. Is there a satisfactory system of budgetary control?

10. Do procedures ensure staffs leaving the company are cancelled from the payroll?

11. Do terms and conditions comply with local labor laws?

12. Are proper provisions made for leave pay and EOSB and are these provisions periodically

reconciled?

13. Are there adequate controls over staff advances?

14. Are all timesheets calculated using a standard payroll-rounding model?

15. Are new employees required to complete an Employees Benefits Checklist?

16. Are new employees provided the necessary information and forms to have their checks

deposited directly to their financial institution?

62
ANNEXURE 2

63
ANNEXURE 3

64
ANNEXURE 4

UDB, Manat Tower, 3rd Floor


Plot no. 13-14,
Cosmo Colony,
Amarpali Marg, Vaishali Nagar,
Jaipur (Raj.)

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.

2. You shall report to work on 13/08/2010 am. At client premises.

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
65
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.

With warm regards,


Yours truly,
For Adecco Flexione Workforce Solutions Limited

(Authorised Signatory)
Enclosures: - (i) Compensation sheet; (ii) Standard Terms of Employment
I hereby accept the above-mentioned terms and conditions.
Name: ______________________ Signature: ________________ Date: ___________

66
ANNEXURE 5

Compensation Sheet

Name :
Designation :

Heads Rs. Per Month


Basic
HRA
Conveyance Allow.
Special Allowance
Gross Salary

Other Employer Costs


Contribution to PF @ 13.61of Basic
Contribution to ESI @ 4.75% of Gross
Insurance
Cost to Company: (CTC)

Less:
Deduction:
Employees Contribution to PF
Employees Contribution to ESI

Take Home :

67

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