CCEP was looking for a solution for both HR and payroll in order to fully leverage the power of payroll and standardise processes across all its regions.
Payroll is so special because payroll is always local, there are no global set rules. This is one of the core areas a provider needs to deliver on and where you have to be adaptable to constantly changing local legislation. Not a lot of players in the market can then deliver on top of that, pan-country standardisations, data processes and systems, and governance — and that’s the added value of ADP.
Nico Orie,
VP, People & Culture Function Strategy and Service
Coca-Cola European Partners
Challenges
- CCEP faced the challenge of standardising processes across regions in order to make payroll more effective.
- The need to adopt a standardised approach was clear, both for efficiency and to improve governance and accountability.
How ADP Helped
- By adopting ADP Global Payroll solution including an enhanced integration with SuccessFactors core HR, CCEP was able to provide one standardised, common view of payroll — streamlining data sets, processes, and ways of working across 13 countries in order to successfully connect ADP Global Payroll to the CCEP Core HR system.
ADP Solutions
Introduction
A producer and distributor of The Coca-Cola Company, Coca-Cola European Partners (CCEP) is the largest global bottler of Coca-Cola beverages in the world, with a shareholder revenue of €12 billion, and a gross operating profit of €1.7 billion. With 23,000 employees located across 13 European countries, CCEP processes a vast amount of HR and payroll data, and the accuracy and timeliness of that data is absolutely essential in keeping the cogs turning.
In 2014, just prior to working with ADP®, there was a global shift whereby organisations started bringing together the back office of HR and implementing shared HCM services.
CCEP came to the conclusion that it needed not just one HR system, but a standardised system for both HR and payroll in order to fully leverage the power of payroll. Over time, complexities had crept into processes and systems, and adopting ADP solutions provided transparency and the opportunity to stand back and really examine the protocols around payroll, particularly with regards to how they could be simplified and optimised.
As Nico Orie said, “Payroll is a deliberate foundational decision. Whatever happens in a company, payroll has to deliver, it has to be secure, and it has to be compliant. The risk is that if payroll is treated purely as a hygiene factor and kept as is, it will come back to bite you. And that’s why at that moment we knew we had to make the decision to structurally change our payroll.”
Take a new look at pay
Now more than ever, it’s clear that payroll is much more than just a hygiene factor. It is, in fact, part of the strategic objectives for businesses, particularly in times of constant change and adaptation. With the HR team at CCEP, there has always been a clear understanding of the vitality of payroll. When payroll was tested by Covid-19 at the beginning of 2020, the team stepped up and continued to deliver, making it even more clear how important CCEP’s investment in a robust and reliable system was.
Nico Orie did observe that in the wider business landscape “there was an enormous wakeup call with COVID-19, and it certainly has made people realise the importance of payroll and that it’s not a push of a button, but that there are very dedicated high-skilled people executing it”.
Organisations’ competitive edge comes down to their greatest asset — their talent, and they cannot afford to lose people. Nico Orie continues, “the sound of silence is the sound of success in this business. When payroll goes wrong, you immediately impact the motivation of your people on the frontline, which impacts engagement and can impact results — and why it is so important that it is always right and always on time”.
The challenges
Prior to working with ADP, CCEP found themselves in the same situation as many large global organisations: with a scattered internal landscape of different payroll and HR solutions from multiple vendors that had accumulated over time. Using both on- and off- premise solutions, they faced the challenge of standardising processes across regions in order to make payroll more effective. No matter how big a local region or how many employees, each must have a payroll system that adapts to their unique legislative and regulatory requirements, while also feeding into to inter-regional systems.
The need to adopt a standardised approach was clear, both for efficiency and to improve governance and accountability. With local regions working independently and with different systems, there became a clear need to create one consistent internal payroll ‘language’ for HR and professionals to communicate in. It was vital that payroll be viewed as more than just a hygiene factor, but as a driver of company efficiency, data standardisation, and control.
The solution
By adopting ADP Global Payroll solution including an enhanced integration with SuccessFactors core HR, CCEP was able to provide one standardised, common view of payroll — streamlining data sets, processes, and ways of working across 13 countries in order to successfully connect ADP Global Payroll to the CCEP Core HR system. The decision to partner with ADP to adopt standard global practices was relatively straightforward, but it was the detail within each region that added complexity to the process. With different fiscal systems, fast changing local regulations, and tax compliance for each country, ADP’s expertise in regional compliance and global standardisation was fundamental to transform the payroll processes of CCEP. ADP’s unique expertise from a payroll to core HR integration perspective enabled to benefits from a seamless end-to-end integrated process.
For CCEP, the case for a standardised global payroll system came down to risk mitigation and building a company for the future. It is an inherently strategic decision to create a long-term platform for effective payroll delivery. Switching payroll providers is a big undertaking and a significant cost — which is why it was imperative to get it right the first time and create a system that can adapt in the future.
The results
For Nico Orie, the key benefits of implementing ADP came down to its unrivalled stability, knowledge of payroll, and truly global solution ...
Adopting ADP’s solutions created a language around payroll internationally, which helped to foster internal collaboration and integration, empowering the international team to make smarter choices and to leverage internal capabilities. Unlike scattered internal systems, a standardised system gives more flexibility and the agility to adapt to the constant changes taking place in the payroll industry and wider world.
Implementing a global payroll system integrated to core HR, helped CCEP to handle not only changes in the payroll industry, but also internal company changes. Operating with a simplified, but powerful architecture of technology provides a solid foundation from which internal organisational change is easier to manage.
One of the most immediately apparent results of standardising HR and payroll systems is the data insight. Having one aggregated source of data enables more accurate and useful data analysis, with the ability to see a wider company picture, and identify themes and trends developing over time and across regions.
A focus on digital infrastructure is important to CCEP’s vision, as business models change in line with new data capabilities in the areas of employee experience, and even artificial intelligence. Valuable HR and payroll data to enable more personalisation in career development and engagement is firmly on Nico Orie’s radar;
The coronavirus has accelerated a lot of strategic thinking and action, and an important part of that is to do with resilience. This will not be the only crisis we endure, which is why resiliency, wellbeing, and skill development is so important. Building a future-ready culture with a growth mindset and an openness to change is essential. And at the heart of it is the employee experience — and with the right technology such as ADP we are better placed to put people firmly in the centre, and build the company experience out from there. If payroll is not on time and not accurate, then whatever nice plans or culture strategies businesses have will not succeed.
Adopting a global payroll solution is at the heart of digital transformation and business success, and a unified payroll system allowed CCEP to meet strategic objectives, focus on core business, and reduce administration by streamlining processes.
