Case Study
Large US Resort Group eliminates exceptions to speed payroll processing
Results
Speed
Moved payroll cutoff later, giving more time to the resorts
Better
Employee setup errors resolved before payroll cycle
Cost
Reduced overtime expense for employees with multiple managers across multiple departments (e.g., restaurant and store)
Company Profile
Privately-held mountain-resort operator, a portfolio of year-round destination resorts across the western US and Canada, plus a heli-ski operation. Operates hospitality, real-estate development, food and beverage, and retail businesses unified by a shared mountain culture and a multi-resort season-pass program.
Challenge
Personnel are assigned to general ledger account(s) during onboarding, and employees clock time which is then approved by managers. Excessive exceptions in employee setup as well as time card submissions and sign-off increased the work and time required to process payroll. As a result, the cutoff date needed to be moved up days earlier in the week which drove more exceptions, errors and cost. Essentially, the centralized payroll function was embroiled in an increasingly adverse loop with resort management.
Solution
Solution focused on identifying setup issues earlier coupled with timesheet tracking, supported by escalating alerts. A trial payroll run was added to the cycle to identify setup issues for early action by managers and accounting. During the cycle, alerts were sent to employees and managers on unsubmitted/unapproved timesheets for actioning. Lastly, accuracy accountability was moved from corporate to the resort level, including chargebacks for payroll exceptions.
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