Problem Statement
Our client operated an enhanced holiday pay process with a potential error rate cost of £560k PA across 3 departments
Process Overview
Enhanced Holiday Pay (EHP) refers to the government ruling stating that employees are entitled to a week’s pay for each week of statutory leave that they take. A week’s pay is calculated according to the type of hours an employee works and how they’re paid for the hours. This includes full-time, part-time, term-time and casual workers. The EHP process requires reports to be run once per period across all business areas, aiming to accurately calculate and reclaim the incorrect EHP that would otherwise be paid to these employees.
The error rates of this process are significant and equally, since the business has been running this process the reclaimed incorrect EHP has been significant.
Systems: MS Excel, SAP, Crown, Store Backoffice
Solution
This is a strategic automation, whereby the hours returned is lower than a typical automation target, but the error reduction is significantly higher. The solution involved high amounts of report generation from SAP and Crown, following by excel manipulation in order to calculate the enhanced holiday pay per department – in doing so reducing error rates and cutting costs
Estimated Business Benefit
1,073
hours p.a.
IMPROVED ACCURACY
Operational Excellence Reduced financial risk
~£560,000 BENEFIT
through reduced errors
Realised Benefit
98% IMPROVEMENT IN
case handling time
£5,484 ERROR RATE SAVINGS SO FAR..
(1/3 departments after 1 period)
CUSTOMER SATISFACTION
“Payroll usually spend 3 days a period on the EHP Process. Having the RPA process in place for P10 removed this as a payoll resource and allowed us to utilise the time elsewhere. The time saved was invested in additional checks to ensure accuracy of pay.”