Shed light on the black box: how Deutsche Post DHL achieved global transparency over payroll processes

Christopher Jereb; Ruth Kuchem; Werner Sohn

doi:10.1108/14754390910976807

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Strategic HR Review

ISSN: 1475-4398

Online from: 2004

Subject Area: Human Resource Management

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Shed light on the black box: how Deutsche Post DHL achieved global transparency over payroll processes

Document Information:
Title:	Shed light on the black box: how Deutsche Post DHL achieved global transparency over payroll processes
Author(s):	Christopher Jereb, (Deutsche Post DHL, Bonn, Germany.), Ruth Kuchem, (Deutsche Post DHL, Bonn, Germany), Werner Sohn, (Deutsche Post DHL, Bonn, Germany)
Citation:	Christopher Jereb, Ruth Kuchem, Werner Sohn, (2009) "Shed light on the black box: how Deutsche Post DHL achieved global transparency over payroll processes", Strategic HR Review, Vol. 8 Iss: 5, pp.23 - 31
Keywords:	Benchmarking, Human resource strategies, Payroll data processing, Performance management
Article type:	Case study
DOI:	10.1108/14754390910976807 (Permanent URL)
Publisher:	Emerald Group Publishing Limited
Abstract:	Purpose – The purpose of this paper is to describe how Deutsche Post DHL's HR shared service center organization enhanced its KPI system (scorecard) by moving it towards a more operational, detailed and process-oriented measurement level. Design/methodology/approach – The paper describes a one-year project aimed at obtaining transparency over payroll processes and costs from a global perspective by focusing on three areas – KPIs, benchmarks and a resource allocation exercise. Findings – Transparency and comparability of payroll processes can be significantly enhanced using a few parameters to assess cost-efficiency and therefore allowing for a better discussion of improvement potential. Practical implications – Transparency over payroll processes and respective costs significantly increased. Different levels of cost savings could be calculated by using internal and external benchmark data. The results enabled more in-depth discussions with payroll, as well as general managers, and identified objectives to facilitate further improvement. Originality/value – The paper reveals how HR can strengthen its business partner role by effectively using instruments such as benchmarks and KPIs.