One of the world's largest FMCG companies, Reckitt Benckiser (RB), uses ADP's services to streamline payroll and compliance processes for its Chennai factory, which became a 100% RB factory at the beginning of 2013.
For over 150 years, RB has been delivering innovative products that make a difference to the everyday lives of consumers across the world. Its health, home, and hygiene brands are sold in nearly 200 countries around the world. RB's purpose is to make a difference by providing people-innovative solutions for healthier lives and happier homes.
RB started its operations in India in the early 1900s and since then, it has successfully scaled its operations by expanding its range of offerings.
In November 2010, RB acquired SSL (a UK-based company). In India, SSL and TTK had a joint venture (JV). They manufactured condoms and Scholl’s products. In 2013, they parted ways and started operating individually. During the JV there were some operational issues which required attention.
Some of the major brands under RB India
Mr. V.P. Ponnuswamy, Head HR, was handling HR activities for 4 factories of the JV. When he joined, RB was still in the JV phase and the employee count was more than 1100. The JV brought in a very traditional, manual approach to payroll processing and therefore payroll was processed using spreadsheets.
As soon as Ponnuswamy took charge, he noticed that the company’s payroll process was inefficient. The employees had to approach the HR department even for minor queries. It took 9 man-days (63 hours) to process payroll and manage statutory compliances. He realized the need for outsourcing and garnered the support of the top management. However, he faced major roadblocks internally as the payroll team had a very traditional mind set.
Following a series of discussions, Ponnuswamy was successfully able to convince them. Post extensive research, they decided to outsource their payroll and statutory process to ADP. Their expectations from ADP were simple.
- Process payroll accurately and on-time (preferably within a day).
- Ensure that company follows all basic statutory and compliance policies.
- Provide an account-management team and contact center to address issues, if any.
No of Employees: 1100+
Challenge: Rising payroll processing time and difficulty in adherence to compliance and managing year-end tax forms
Solution: ADP’s Managed services for payroll and compliance
ADP’s implementation team conducted a payroll induction to learn about the company and its current processes. Past pay slips were collated and a master employee-payroll database was created. A test run was performed to ensure the accuracy of the pay slips that were generated.
Once the implementation was successful, ADP provided RB with an account manager and a support team to ensure a quick response and better support experience.
"Initially there were some issues with the implementation mainly due to the communication gap between ADP and us. But ADP’s implementation team put in extra efforts to ensure that the setup was configured accurately. I take this opportunity to thank them for their hard work and dedication to ensure a smooth transition.”
V. P. Ponnuswamy Head-HR
Key benefits realized
After the JV company outsourced its payroll and compliance to ADP at the beginning of 2012, Ponnuswamy has realized that his team members now had enough time to concentrate on core HR activities.
The 3 major benefits were as follows:
- Outsourcing payroll and compliance saved 9 man-days (63 hours) when it was a JV. Post the JV it saves around 2.5 man-days.
- All reports and documents are completed on time because of compliance with statutory regulations.
- Employees are satisfied because of accurate and on-time pay slips.