Royal Mail to deliver SAP human resources platform

Post by **TrueBlueTerrier** » 10 Dec 2008, 15:24

http://www.computerworlduk.com/manageme ... wsid=12328

Three year deal to eliminate plethora of legacy HR programs

By Leo King, Computerworld UK

Royal Mail is looking for a services contractor to deliver a human resources IT platform based on SAP enterprise resource planning.

The postal group wants to remove a wide range of legacy systems currently performing key HR processes. It has been migrating other systems over to SAP since 1999. Work on the HR platform is expected to last three years, but Royal Mail has not announced what it expects to spend on the programme.

The systems will be used by 25,000 staff working for Royal Mail Letters, package courier Parcelforce and local Post Office shops. They will provide self-service HR functions for staff. It is not known which HR functions will be automated, but traditionally they encompass functions including booking holidays and declaring sick days.

The systems will also process payment for the rest of the company's 200,000 staff, most of whom are paid weekly.

Managers will be able to see a range of employee data in one place, Royal Mail said, helping with employee performance, payroll including overtime, expense management, and development and training. Managers will also use the system to recruit new staff.

Royal Mail is now looking for an IT services firm to provide consulting, software development, internet and support services around SAP in order to develop the new HR system. It wants data to be migrated from legacy systems, and it is looking for change management and training.

The government-owned mail delivery company is already an extensive user of SAP, including in its finance department. It is also over half way through a Deloitte-run SAP e-procurement rollout, which is targeting £300 million savings.

In a contract notice, Royal Mail wrote that it wants the winning bidder to develop “process blueprints” for human resources, to extract data from legacy systems and move it to SAP, as well as testing new systems and managing change while training staff.

It also needs the “necessary infrastructure and hosting capability” to help with quality assurance before systems are switched on, it said.

“The programme is a major business initiative which will see the implementation of transformed HR processes and investment in an SAP ERP platform,” Royal Mail wrote in the contract notice. “[It] will replace legacy payroll and HR admin systems, a multitude of bespoke point solutions and a plethora of local spreadsheets with a single SAP ERP HR system.”

Potential IT suppliers have until 12 January next year to indicate their interest, and they can bid on the online SAP-based e-sourcing system used by the company. The contract will run from May 2009 to April 2012. Royal Mail said it would choose “the most economically advantageous tender” that meets its requirements.

F0zziebear · Post by **F0zziebear** » 10 Dec 2008, 15:39

Sounds to me like they've already chosen their supplier for this. There are few who can provide something on this scale. This has been on the agenda for some years. It is vital that they get this right. The financial system was moved onto SAP some years ago and there is now a e-procurement system being implemented as well.

I can vouch and say that RoyalMail's HR function was a mess when I had the unfortunate pleasure of working with them. The systems, people and processes were exceptionally clunky, weren't able to talk to each other properly and considering it is the 2nd largest employer in the country you'd expect this area to be a priority. I only hope they bring in someone who really understands RM's needs. Ultimately it will mean fewer jobs in HR and FInance processing departments. The effects of this will mainly be felt in the Chesterfield and Sheffield offices

DGP1 · Post by **DGP1** » 10 Dec 2008, 16:47

I would have thought that payroll would have been on a central system

but I suppose it's only a matter of time that we all get key cards that record us in and out everyday thereby fully computerising the entire payroll system.

Post by **dvbuk55** » 10 Dec 2008, 18:29

disgruntledpostie1 wrote:I would have thought that payroll would have been on a central system but I suppose it's only a matter of time that we all get key cards that record us in and out everyday thereby fully computerising the entire payroll system.

Do you think this is the prelude to monthly pay? - which I believe is also a part of Phase 4. I just wonder if we will be offered a better than average pay rise next year, part of which will be the acceptance of monthly pay.

DGP1 · Post by **DGP1** » 10 Dec 2008, 18:46

dvbuk55 wrote:
disgruntledpostie1 wrote:I would have thought that payroll would have been on a central system but I suppose it's only a matter of time that we all get key cards that record us in and out everyday thereby fully computerising the entire payroll system.
Do you think this is the prelude to monthly pay? - which I believe is also a part of Phase 4. I just wonder if we will be offered a better than average pay rise next year, part of which will be the acceptance of monthly pay.

The union will probably negotiate a pay cut for us

but yes I think you're right about the monthly pay only because it'll give them the biggest saving to date (up to 75% of the payroll staff away but more importantly keeping the wages for an extra 3 weeks which will make them a small fortune if done correctly).

F0zziebear · Post by **F0zziebear** » 11 Dec 2008, 09:26

You are right about the savings that can be made by moving from weekly to monthly pay. I am curious to know whether people are happy or otherwise with such a move. Is there a reason why you would want to keep pay weekly?

Tman · Post by **Tman** » 11 Dec 2008, 11:08

F0zziebear wrote:You are right about the savings that can be made by moving from weekly to monthly pay. I am curious to know whether people are happy or otherwise with such a move. Is there a reason why you would want to keep pay weekly?

Tradition?

The word on SAP (despite the posted article) is that RM no longer considers it "fit for purpose" (NewSpeak again..) and will be dumped in the near future.
I my experience it's over-complex and clunky to use, and the monthly pass-word change must make a mountain of extra work for IT.

F0zziebear · Post by **F0zziebear** » 11 Dec 2008, 11:46

SAP only works well if you have a very simple structure in place. RoyalMail does not have this and personally speaking using SAP will cause problems, which is why I only hope they have a high quality company doing it who really understand RM's needs (you can read my opinion from that I believe).

However, I do think that moving to monthly pay makes sense and if costs can be cut from somewhere other than the frontline then that is good thing, unless you are in solidarity with the payroll jobs that will go as a result of this.

The HR systems in RM are dreadful and still require a huge amount of human intervention for them to work. Anyone who has been to Chesterfield or Sheffield will realise this.

I only wonder what a postie will think when they can't spend their paycheck each week?

Post by **Thorby Bislam** » 11 Dec 2008, 15:21

I only wonder what a postie will think when they can't spend their paycheck each week?

Which they wont be able to do if they dont get a paycheck (?) each week.
It's our money. We earned it and we want it. It is illegal and immoral (look it up) to hold back from us what is rightfully ours.

F0zziebear · Post by **F0zziebear** » 11 Dec 2008, 15:36

OK. That is a point, yet al non-ops people in RM (not just management and fat cats before we get into that one) get paid monthly.

Has the union expressed a public opinion on this one. I personally feel that they will except this move if it means an above inflation linked pay rise and no extra job losses at the frontline.

I suppose its a watch this space

Post by **TrueBlueTerrier** » 11 Dec 2008, 15:55

Its actually been accepted in principle by the memberships acceptance of the Pay and Modernisation Agreement. Monthly pay is part of Phase 4 and will come in - its just the fine print and any benefits we may get from its implementation that the Union and Royal Mail are to, or actually are discussing.

Post by **dvbuk55** » 11 Dec 2008, 16:35

TrueBlueTerrier wrote:Its actually been accepted in principle by the memberships acceptance of the Pay and Modernisation Agreement. Monthly pay is part of Phase 4 and will come in - its just the fine print and any benefits we may get from its implementation that the Union and Royal Mail are to, or actually are discussing.

No we didn't agree to monthly pay - and that is the problem with this Pay and Modernisation Agreement. Monthly pay comes under PHASE 4, which isn't a blueprint for change but a basis for FURTHER agreement and acceptance but it is easy to fall into the trap of thinking that it is already agreed. I do think it will be implemented and sooner rather than later.

In fairness I have to say that despite people protesting nearly everyones budget is based on monthly payments and prior to working here I was always paid monthly and it doesn't make a blind bit of difference - it's what you DO with the money not when you get it.

escargot · Post by **escargot** » 11 Dec 2008, 19:19

My DOM has enough problems getting our ot correct on a weekly basis,every week someone is in as he's "forgotten" something and when challenged will try and blame payroll, gawd help us if we have to wait a month to check our pay

Post by **Thorby Bislam** » 12 Dec 2008, 20:10

I would like to see Fozzie and TBT doing a weekly shop at ,say, Tesco, and getting to the checkout and saying "just put it on the slate and I'll pay you when I get paid at the end of the month".

k979aaa · Post by **k979aaa** » 12 Dec 2008, 20:26

dvbuk55 wrote:
TrueBlueTerrier wrote:Its actually been accepted in principle by the memberships acceptance of the Pay and Modernisation Agreement. Monthly pay is part of Phase 4 and will come in - its just the fine print and any benefits we may get from its implementation that the Union and Royal Mail are to, or actually are discussing.
No we didn't agree to monthly pay - and that is the problem with this Pay and Modernisation Agreement. Monthly pay comes under PHASE 4, which isn't a blueprint for change but a basis for FURTHER agreement and acceptance but it is easy to fall into the trap of thinking that it is already agreed. I do think it will be implemented and sooner rather than later.

In fairness I have to say that despite people protesting nearly everyones budget is based on monthly payments and prior to working here I was always paid monthly and it doesn't make a blind bit of difference - it's what you DO with the money not when you get it.

We did not agree to the pension rape either but it still happend and what is being done of that on our behalf?.