OPM E-Government Initiative
E-Payroll

Office of Personnel Management
Strategic Compensation Conference 2002

August 27-28, 2002

OPM e-Gov Initiatives

• e-Clearance
• EHRI
• e-Payroll
• Recruitment One-Stop
• Retirement System Modernization
• e-Training

Interrelationships Among OPM e-Gov Initiatives

[This slide shows a graphic of a model. The model is made up of three columns. Within the columns, there are boxes with labels. The boxes are connected by lines.]

The first column is titled Recruitment.

A line connects "Recruitment One-Stop" and "Agency Assessment Systems."
A line connects "Agency Assessment Systems" and "e-Clearance."
"e-Clearance" is located partially in the first column and partially in the second column.
The second column is titled Employment.

A line connects "e-Clearance" and "Agency Systems/Validations."
A line connects the first column label "Agency Assessment Systems" and "Agency Systems/Validations."
A line connects "Agency Systems/Validations" and "e-Training."
A line connects "Agency Systems/Validations" and "Enterprise Human Resources Integration."
A line connects "Agency Systems/Validations" and "e-Payroll."
"e-Payroll" is located partially in the second column and partially in the third column.
The third column is titled Retirement.

A line connects "Enterprise Human Resources Integration" and "Retirement Systems Modernization."
At the bottom of the slide are the following words:
The Employee Life Cycle

OPM E-Payroll
The Current Environment

• 22 Payroll Providers
  • 4 Largest service 80% of total Federal civilian payroll
    • Def Finance & Accounting Service
    • Dept of Interior
    • Dept of Veterans Affairs
    • Dept of Agriculture
      
• Cost for current provider systems (FY 2003 – 2012)
  • Operations - $1.5 billion
  • Investments - $.7 billion
  • TOTAL - $2.2 billion

OPM E-Payroll
Recommendation

• Consolidate Federal payroll providers
• Standardize payroll policies
• Modernize payroll systems as necessary
• Phased approach to achieve the end state, an integrated HR/Payroll system

OPM e-Payroll Standardization Overview

• Standardization Action Team (SAT)
• Scope
• Mission
• Background
• Process
• Results
• Next Steps

OPM e-Payroll Standardization
SAT

• Established May 2002
• Agency HR, Compensation and Payroll experts
• Review and analyze opportunities to standardize and simplify payroll policies
• Establish payroll processing baseline

OPM e-Payroll Standardization
Joint Financial Management Improvement Program (JFMIP) Interagency Study

• SAT baseline
• Identified 56 targets of opportunities for improvement
• Payroll and HR related

OPM e-Payroll Standardization
SAT Process

• Analyzed JFMIP opportunities for improvement
• Identified additional opportunities from agency payroll operational and system specialists
• Focused on title 5
• Formed title 38 subgroup

OPM e-Payroll Standardization
SAT Results

• Identified total of 87 opportunities for improvement

OPM e-Payroll Standardization
SAT Results (continued)

• Received and analyzed over 250 agency comments
• Prepared a Report of Findings for Standardization of Federal Payroll Policy

OPM e-Payroll Standardization
Report of Findings

• Identified 87 standardization opportunities
• Recommended model for continued standardization
  • Process reengineering
  • Stakeholder Involvement
  • Communication
  • Change Methodology
  • Benchmarking
• Part of e-Payroll Standardization Plan
  • Approved by OPM Director August 4, 2002
  • Beginning point for next steps

OPM e-Payroll Standardization
Next Steps

• Coordination of initial standardization opportunities with OPM Program Offices
• Perform non-title 5 review
• Identify additional standardization opportunities in payroll processing
• Integrate the standardization process with the consolidated providers