Dual Digital Media (DDM) Support Service Centralization Project
Dual Digital Media (DDM), a technology company has grown fast in the past several years to 9 sites located in 4 USA states and 5 Canada provinces. The company has several operation centers for Human Resource and Payroll process located in Canada. The company has decided to centralize the support service rather than having overhead costs for payroll and Human Resources in each operational center.
· The 4 Canada sites and 1 USA site are located as follow:
New York City
· The Centralization Project will start effective December 1st and everything will be implemented on May 1st, 2016.
The project will focus on 5 major issues that need to be solved during the centralization. Analysis will be provided based on the company's current situation. The alternatives will also be listed as backup plans. An action plan will be provided at the end of the report for implementation.
Major Issues of the Centralization Project
· Head Office Location
There are currently 4 support centers in Canada and 1 support center in USA located in different provinces. In order to centralize the HR and Payroll service, one location should be selected as the new Head Office to support overall support services. All the employees work for HR and Payroll services will be relocated to the new head office if possible.
· HR and Payroll System
Different payroll systems are being used in different locations right now including Ceridian, Comply, ADP and ACCPAC. Since so many systems are being operated, maintenance and upgrade fee for each system is a large expense for now. After the centralization, there will be only one system being used in the head office.
· Pay frequency
DDM currently has both hourly and salary employees with weekly, bi-weekly and semi-monthly pay period frequencies. Most of the hourly employees are part time employees and most of the salary employees are full time employees. Pay period frequencies could be reduced in order to reduce the work load of the payroll team.
· Unified vacation and benefit policy
DDM will need to set up the unified new vacation and benefit policy for all current and future employees. Negotiated the employee's own vacation and benefits entitlement on hire will not be eligible anymore. The existing employees and future hired employees will all follow the new unified vacation and benefit policy.
· Executive Payroll
The payroll of regular employees' is calculated by the system from each operating center. The executive payroll for the management team of eight is done manually by the President's Executive Assistant. Regular payroll and executive payroll are processed separately.
Analysis of the Situation
The stakeholders of the centralization...