CHAPTER 1

INTRODUCTION

1.1. COMPANY PROFILE

The Adecco Group, based in Zurich, Switzerland, is the worlds leading provider of HR solutions. With over 29,000 employees and 5,800 offices, in more than 60 countries and territories around the world, Adecco Group offers a wide variety of services, connecting more than 500,000 colleagues with over 100,000 clients every day. The services offered fall into the broad categories of temporary staffing, permanent placement, outsourcing, consulting and outplacement. The Adecco Group is a fortune Global 500 company.

1.1.1. VISION AND MISSION Better work, Better life We inspire individuals and organizations to work more effectively and efficiently, and create greater choice in the domain of work, for the benefit of all concerned. As the worlds leading provider of HR solutions a business that has a positive impact on millions of people every year we are conscious of our global role. Our aim is to give everyone involved with Adecco the opportunity to improve their situation, be it at work, at home, in leisure activities or in life. We are the world leader in connecting people both globally and locally with the talent they need and the work that they want. We seek those motivated to make change and know that, as partners we can help them to shape and achieve their personal and professional goals. We offer life skills, career progression and specialized expertise. We continually seek new approaches and we partner with the best trainers. We use technology to create real advantages. We want associates and clients to truly benefit from working with us and we continually invest to sustain our position as innovators.

Our responsibility is to connect people both globally and locally. To accomplish this, we must be easily accessible by our clients and associates at all times. We must provide them with a thorough understanding of how we can work with them and the services that we offer. We encourage the situation where individuals have greater choice and want to work with a partner who demonstrates they have the relationships and skills that fit their exact requirements. We are confident that, as Adecco, we will help to inspire our colleagues, clients and associates to achieve better work, better life.

1.1.2. STRATEGY The changing world of work The world of work is changing and Adecco is one of the leading forces shaping that change. There is a growing demand for both flexibility and skills on the part of the workforce. In relation to our operating business, this results in our two distinct approaches to the market. For positions that require general skills, we offer specialized solutions, focusing on industry know-how and cost leadership. This also means ensuring continuity and nurturing long-term relationships with our internal and external colleagues. Attracting professional skills requires "experts" in our network. Their in-depth professional knowledge amongst our employees enables us to find and provide challenging consecutive assignments which offer attractive perspectives for career development. In both approaches to the market, it is our goal to focus on operational excellence, higher specialisation and efficient delivery models.

As the global leader in HR services, we are aware that traditional patterns of employment will continue to evolve in the years to come. We therefore want to encourage the present and future generations to see change as opportunity in myriad forms. We want to invite people to accept tomorrows challenges with confidence and to join us in shaping the future of the workplace.

1.1.3 OUR BUSINESS

People are at the centre of everything we do. This is evident in the relationship between Adeccos more than 731,000 internal and external employees, as well as that between our employees and over 100,000 clients we serve every day. People are the focus of our continued search for excellence in the provision of our principal offerings: temporary staffing, permanent placement, secondment, outsourcing, outplacement, training and consulting. People, whatever their culture or background, all aspire to a better life and a more rewarding future. We inspire individuals and organizations to create greater choice in the world of work, for the benefit of all stakeholders. As the worldwide leader in HR services, we are conscious of our global role of helping to shape tomorrows workplace for the better. As a complement to our traditional Office and Industrial businesses, we operate Professional staffing businesses, focused on the specific expertise of our employees. In todays fluid business environment, Adecco people around the world are helping connect private and public organizations with the right skills and expertise to fulfill their needs. Matching talent is vital in giving individuals and companies a competitive edge. We build relationships with talented people around the globe to handle any size of project or assignment. International companies requiring services provided at multiple locations deal with a single Adecco partner who has expertise in the relevant field. Our strategy is to develop lasting relationships with all our stakeholders. 4

Our success is driven by expertise and passion, networked through a flexible, decentralised organisation. These are the core elements that have enabled us to build our leading position in the industry and are the basis for the two-sided market approach we have developed worldwide. A. General staffing B. Professional staffing

A. GENERAL STAFFING General staffing for office and industry jobs is Adeccos original core business and the foundation of its reputation over many years. It still accounts for around 73% of the Groups total revenues, generating EUR 10.9 billion in 2009. The sector also has considerable growth potential, which we aim to harness by offering our clients specialized solutions, focusing on industry know-how and efficiency in the process. Against a background of demographic change and a growing shortage of qualified personnel, we are focusing on making the recruitment process more efficient and responsive. One way we are meeting these changing needs is to build closer, longer-lasting relationships with motivated employees, both internal and external, offering continuity through successive placements and career development. For more than 50 years, Adecco has been helping businesses develop long-term staffing strategies and secure the employees best qualified to meet the unique challenges they face. With our proven experience, extensive resources and expert recruitment solutions, we connect clients with the people they need, and people with the work they want.

Adecco Office

Adecco Office is the strategic partner for candidates and customers seeking perfectly tailored working solutions. We specialize in temporary and permanent placement of administrative and clerical staff. In order to provide the right combination of personnel and technical skills, we focus on the following business areas (in some countries through specific brands):
       

Administrative/Clerical Assistance Customer Service Human Resources Import/Export Project Management Purchasing Secretarial/PA

Our success is based on a good understanding of the needs of clients and external colleagues, enabling us to make the perfect match. Close ties to our markets and customers enable us to tailor personnel solutions to changing requirements, meeting clients' individual needs through welltrained and motivated staff with the right skills for the job. With years of experience in matching personnel and technical skills, we are able to offer customized office solutions at all levels of an organization. Adecco Office offers external colleagues serial assignments at the same client, ensuring continuity in the relationship. Skills are enhanced through continuous learning in challenging projects. Adecco is the world leader in connecting companies with the people they need and providing people with the work they want. 6

Adecco Industrial

Adecco Industrial serves organizations needing workers in areas such as assembly, production, machine operation and mechanical trades, warehousing, packaging, shipping and receiving, bindery and fulfillment. Accuracy, dexterity and reliability are all vital to success in the light industrial field, and the same applies to the business of connecting good workers with good companies. That is Adeccos business. For more than 50 years, we have been helping businesses develop long-term staffing strategies and secure the most highly qualified employees to meet changing needs in evolving markets. In many countries, Adecco has developed specialized solutions for specific industries such as aerospace, automotive, construction, transport and logistics and many more. All the sectors where we know that our clients and colleagues are looking for a specialized service. We pay particular attention to safety at work, organizing training sessions for our external colleagues and constantly raising awareness among organizations and individuals alike. With our long experience, extensive resources and expert recruitment process, we are the world leader in connecting companies with the people they need and providing people with the work they want.

B. PROFESSIONAL STAFFING In a volatile and challenging labour market, there are pressures as well as incentives for people to adopt so-called "portfolio careers", acquiring a versatile set of skills that will fit different situations and requirements. Many individuals value a supportive and highly informed partner who can provide guidance on training and help them find the right job at the right time. We aim to build relationships that look beyond the immediate needs of placement and recruitment, to retain and develop the talents of our colleagues in their interest and ours. At the 7

same time, we want to gain and retain the loyalty of clients by delivering customized solutions and the expertise they need when and where they need it. We call this approach "experts talk to experts". This approach also enables us to concentrate and distribute industry insight, best practice and new initiatives, and to take full advantage of the local depth and global reach of our worldwide organization. The Professional Business Lines complement our established business in Office and Industrial services.  Adecco Human Capital Solutions  Adecco Sales, Marketing & Events  Adecco Medical & Science  Adecco Information Technology  Adecco Engineering & Technical  Adecco Finance & Legal

Adecco Worldwide

Key figures 2009

   

Over 28,000 full-time equivalent employees Over 500,000 associates on assignment daily Over 100,000 clients every day Over 5,500 offices in more than 60 countries and territories

Adecco India

Adecco India, headquartered in Bangalore, is a leading end-to-end HR solutions company with a focus on Executive Search, Recruitment, Training & Learning and Temporary Staffing services to client organizations. With a national presence in 40 branches across India and the Middle East, Adecco is the fastest growing HR Company in India.  Rapid growth with the largest branch network of 40  Over 66,000 associates on assignment every day, nationally  Distinguished list of over 1000 clients across all segments  Placement of around 4000 candidates per month, across India  Over 800 trained and specialized consultants to customize your HR solutions  Consistent investments in Information Technology and infrastructure to upgrade service quality  Global resources of Adecco complement local intelligence and delivery ability  Domain expertise across specific industries - IT Enabled Services - Information Technology - Telecom, Media & Entertainment - Engineering, Process & Infrastructure - Consumer Services & Retail - Banking, Financial Services & Insurance

Adecco Services a) Recruitment Solutions b) Staffing Solutions c) Professional Staffing d) Talent Management Solutions 10

e) Assessment Solutions f) Payroll Management Services g) Managed Services h) Recruitment Process Outsourcing

a) Recruitment Solutions Connecting great talent with great opportunities Recruitment is a defining activity for both, companies as well as, candidates. For companies, it sets the pace and creates the operational horsepower for growth. For individuals, it defines the quality of life. Adecco India, a market leader in specialist recruitment services, provides tailor- made recruitment solutions across verticals, with a branch network that has extensive geographic coverage in India. Thorough research and accurate mapping of interests of both, our clients, as well as, our candidates, is what sets us apart. As a corporate partner to clients, we source professionals with high intellectual capabiliti s to e help enhance the clients human capital on one hand, and on the other, we help individuals optimise their career choices. Sectors:  Information Technology  IT Enabled Services  Telecom, Media & Entertainment  Engineering, Process & Infrastructure  Consumer Services & Retail  Banking, Financial Services & Insurance

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Service Offerings  Contingency Recruitment This is an ongoing recruitment & placement activity to client organisations. We do a search for candidates through our internal, extensive and robust search engine HireCraft, referrals and marketing activities. Resulting from the search, candidates with the right skill, knowledge, experience and attitude are short listed. Details about the position and clients interest are then discussed with the short listed candidates further to which, an interview is organised between the candidate and the client, to take the position forward.  Turnkey Staffing This is a service offering the right skill at the right time to fulfill a project or a position. It addresses the needs in all the levels- junior, middle and senior management.  Cross-border Recruitment This offering introduces professionals with the required background to meet particular client requirements, from anywhere in the world.  Recruitment Process Outsourcing We manage the entire recruiting/ hiring process from job profiling through the on-boarding of the new hire, including staff, technology, method and reporting for a client organisation. A properly managed RPO will improve a company's time to hire, increase the quality of the candidate pool, provide verifiable metrics, reduce cost and improve governmental compliance.

b) Staffing Solutions Permanent solutions for Temporary Staffing People are the most powerful assets of a company and the ability to choose the right people is most strategic for any company, today. Companies across the globe lay critical emphasis on their

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human resources and in the process, newer methods have evolved to enable them to get the right people for the right job at the right time. Need to contain headcount, seasonal increase in business, need to lower employment costs and demand for niche skill sets are some of the underlying reasons that have made companies opt for temp staffing. Today, HR Outsourcing, also known as Temporary Staffing, has become a globally accepted norm. The Staffing Solutions division of Adecco India, is a leading provider of end to end solutions in temporary staffing.

Service Offerings  Recruitment Support  Seamless Migration  Structured On-boarding  Associate Training  Payroll Management  Compliance  Adecco Support Centre  Customised Solutions

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Client Mix We have a good mix of clients from almost all sectors.

Our Associate Mix We have over 64,000 associates, across 400 districts that are serviced through Adeccos presence in 30cities/ towns.

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c) Professional Staffing Today, companies are increasingly depending on specialised manpower services to meet their short-term & long-term objectives. With "specialised focus" being the mantra of todays hiring, Adecco Indias Professional Staffing arm locates, selects, screens and mobilises talent in the Technical & IT Space- wherever and whenever you need it. Our industry-specific focus allows us to develop a depth of experience, expertise, and connections in the Professional Staffing space. Service Offerings  Technical Staffing  IT Staffing

 Technical Staffing Industry Segments Adecco Technical provides services to the following Industry segments
o Engineering R&D o Chemicals o Petrochemicals o Refinery o Oil & Gas o Power/ Energy o Infrastructure

 IT Staffing
o Database Design & Development o Network Engineering o Project Management

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o Software Engineering/ Programming o System Administration o Technical Documentation o Web Design & Integration

d) Talent Management Solutions

Lee Hecht Harrison is able to offer scalable competency enhancement solutions to corporate and business houses to improve retention, productivity & performance. Our targeted approach focuses on key positions, functions and individuals whose engagement and retention are critical to the delivery of organizational results. We design and deliver both Functional & Behavioral training programmes, including MDPs.

 Dynamic Delivery Style- a unique blend of conceptual and experiential learning  Trained over 30,000 participants from over 260corporates and business houses across India  Training modules are built around four frameworks-Managing Self, Managing, People, Managing Customer and Managing Business  Courseware Design- customized to suit client needs by an exclusive internal Content Development Division  The LHH Customer Retention- repeat assignments from most of our clients  Continuous Internal Calibration of Trainers- to ensure sustained consistency in delivery Career Transition Leadership Consulting Workforce Solutions. Domains of Expertise  Career Transition  Leadership Consulting  Workforce Solutions 17

Training Need Analysis Service Offerings  Competency Mapping  Assessment & Development Centers (ADCs)  Business Simulations  Behavioural Training  Soft Skills Training  Outbound & Outdoor Training  Functional Training  Leadership Training  Executive Coaching  Content Research & Design - Case Studies, Role Plays,  Activities & Games  Train-the-Trainer Workshops

Approach

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Methodology Our Solutions are tailor-made and customized based on the ADDIE Model

e) Assessment Solutions Talent Management now made easier with Assessment Solutions Adecco provides a host of proven & tested Assessment tools to both individuals and groups to improve productivity and assess training & development needs in organization. Our Assessment tools serve as a talent management platform that provides in-depth assessment of individuals/ groups and can be used in the context of:  Assess Self  Assess New Hire  Assess Team  Assess Managers  Assess Development  Assess Successor

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f) Payroll Management Services End-to-end Payroll Management Solutions - now just a call away Being the worlds largest and Indias No. 1 end-to-end HR Services Company, it gives us the desired edge to provide seamless end-to-end Payroll Management Services. Leveraging on our experience and expertise in payrolling 64,000+ associates and with a large pan- India presence across 30 key cities/ towns, we have the resources to serve customers from every corner of the country.  Payroll Processing  Payroll Statutory Compliance & Reporting  Employee Query Management  Tax Calculation & Verification  Payroll Reconciliation  Statutory & MIS Reporting  Employee Self Service Portal  Gross-to-net processing

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1.1.4. SCOPE OF SERVICES

 Key Capabilities
o Overall

 Maintenance of Employee Database  Payroll Process  Standard Outputs  Reports

 Employee
o Pay slip - hard copy/ E-mail o Quarterly Tax computation sheet - hard copy/email o Online access for pay slip, Income Tax computation & reimbursements

 Employer
o PF/EPS Contribution details

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o PT recovery (State wise and slab wise) - Monthly o ESI - Monthly Contribution details and data for half yearly returns o PF-Annual Returns in Form 6A o Income Tax - Form 16, Form 24 (e-filing) & Form o 24 Q (Quarterly returns) Labor Welfare Fund recovery details as per statutory

deduction

 Other Reports
o Pay Register o Net Pay Advice o Journal Voucher o Loan Register

 Data Security Measures

o Multiple levels of Security can be given o Data base Administrator controls the Oracle database o Different levels of Security can be defined at different levels namely User Access

Control
o

View, Print, Modify, Add and Delete Scheduled data base backup system with full data as well as client-wise data backup

1.1.5. THE ADECCO ADVANTAGE

 Defined team structure  Process/ Domain expertise from existing database (64,000+ associates)

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 Process capability - Multiple market segment Adecco Reach - presence across 30 cities/ towns pan India  Structured Technology Solution increases process capability  Centralised processing to enable effective control  Regional SPOC (Specific Point of Contact)  100% confidentiality of customers payroll information is maintained

1.1.6. ADECCO SOURCING METHODOLOGY

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1.1.7. ADECCO COLLABORATIONS

A. ADECCO TISS Adecco and Tata Institute of Social Sciences (TISS) MoU to establish a research and policy advocacy programme. The Adecco-TISS Labour Market Research Initiative (ATLMRI) is located at the TISS campus in Mumbai. The joint programme is to analyze and understand growth trajectories in the Indian economy, the character of labour force and to bring out the Labour Market Research Annual Report and quarterly updates.

B. ADECCO NIIT

Adecco SA, through its wholly-owned subsidiary Ajilon Holding Europe BV & NIIT Technologies Limited, a global IT solutions organization headquartered in New Delhi, India, entered into a joint venture to deliver world-class application software development and maintenance solutions to Adeccos clients. The joint venture will leverage the competencies of both organizationsit will support Adeccos newly-founded IT Business Line with its global client base. NIIT Technologies will create and maintain a delivery organisation capable of providing services of the highest quality

C. ADECCOS LATEST INITIATIVE ASC Adecco Support Centre, an exclusive contact centre, reachable from 8 am to 8 pm, 5 days a week, is a one-stop solutions hub to address queries and provide solutions to both, our customers as well as associates. The ceaseless focus of Adecco Support Centre will be to add smiles to our support system- customers & associates, in our endeavor to become a proactive solutions provider. With this initiative, Adecco aims to ensure total customer and associate satisfaction.

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CHAPTER 2

ORAGANIZATIONAL STRUCTURE

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2.1 ORAGANIZATIONAL STRUCTURE

General Manager

Marketing Manager

HR Manager

Finance Manager

IT Manager

2.2. ORAGANIZATIONAL STRUCTURE OF HR DE ART

ENT

HR Manager

Payroll Process Executive

Recruitment Executive

Asst. Payroll Process Executive

Asst. Recruitment Executive

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2.3. BRANCHES IN INDIA

SOUTH  Bangalore  Mysore  Chennai  Coimbatore  Hyderabad  Hyderabad  Cochin  Visakhapatnam  Madurai  Sri Perambadur  Vijayawada  Ranipet

NORTH  Chandigarh  Lucknow  New Delhi  Gurgaon  Madhya Pradesh  Bhopal  Rudrapur  Jaipur  Himanchal Pradesh  Indore  Noida  Baddi  Ludhiana  Varanasi  Udaipur  Raipur

EAST  Jamshedpur  Guwahati  Kolkata  Patna  Bhubaneswar  Siliguri

WEST  Mumbai  Pune  Ahmedabad  Goa  Nashik  Aurangabad 27

CHAPTER 3

PAYROLL MANAGEMENT

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Human Resource is the most vital resource for any organization. It is responsible for each and every decision taken, each and every work done and each and every result. Employees should be managed properly and motivated by providing best remuneration and compensation as per the industry standards. The lucrative compensation will also serve the need for attracting and retaining the best employees.

3.1 COMPENSATION
Compensation is the remuneration received by an employee in return for his/her contribution to the organization. It is an organized practice that involves balancing the work -employee relation by providing monetary and non-monetary benefits to employees. Compensation is an integral part of human resource management which helps in motivating the emp loyees and improving organizational effectiveness.

3.1.1. Components of Compensation System Compensation systems are designed keeping in minds the strategic goals and business objectives. Compensation system is designed on the basis of certain factors after analyzing the job work and responsibilities.

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Components of a compensation system are as follows:

3.1.2. Types of Compensation Compensation provided to employees can direct in the form of monetary benefits and/or indirect in the form of non-monetary benefits known as perks, time off, etc. Compensation does not include only salary but it is the sum total of all rewards and allowances provided to the employees in return for their services. If the compensation offered is effectively managed, it contributes to high organizational productivity.

 Direct Compensation  Basic Salary Salary is the amount received by the employee in lieu of the work done by him/her for a certain period say a day, a week, a month, etc. It is the money an employee re ceives from his/her employer by rendering his/her services

 House Rent Allowance Organizations either provide accommodations to its employees who are from different state or country or they provide house rent allowances to its employees. This is done to provide them social security and motivate them to work. 30

 Conveyance Organizations provide for cab facilities to their employees. Few organizations also provide vehicles and petrol allowances to their employees to motivate them.

 Leave Travel Allowance These allowances are provided to retain the best talent in the organization. The employees are given allowances to visit any place they wish with their families. The allowances are scaled as per the position of employee in the organization.

 Medical Reimbursement Organizations also look after the health conditions of their employees. The employees are provided with medi-claims for them and their family members. These medi-claims include health-insurances and treatment bills reimbursements.

 Bonus Bonus is paid to the employees during festive seasons to motivate them and provide them the social security. The bonus amount usually amounts to one months salary of the employee. 31

 Special Allowance Special allowance such as overtime, mobile allowances, meals, commissions, travel expenses, reduced interest loans; insurance, club memberships, etc are provided to employees to provide them social security and motivate them which improve the organizational productivity.

 Indirect Compensation Indirect compensation refers to non-monetary benefits offered and provided to employees in lieu of the services provided by them to the organization. They include Leave Policy, Overtime Policy, Car policy, Hospitalization, Insurance, Leave travel Assistance Limits, Retirement Benefits, Holiday Homes.

 Leave Policy It is the right of employee to get adequate number of leave while working with the organization. The organizations provide for paid leaves such as, casual leaves, medical leaves (sick leave), and maternity leaves, statutory pay, etc

 Overtime Policy Employees should be provided with the adequate allowances and facilities during their overtime, if they happened to do so, such as transport facilities, overtime pay, etc.

 Hospitalization The employees should be provided allowances to get their regular check-ups, say at an interval of one year. Even their dependents should be eligible for the medi -claims that provide them emotional and social security.

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 Insurance Organizations also provide for accidental insurance and life insurance for employees. This gives them the emotional security and they feel themselves valued in the organization.

 Leave Travel The employees are provided with leaves and travel allowances to go for holiday with their families. Some organizations arrange for a tour for the employees of the organization. This is usually done to make the employees stress free.

 Retirement Benefits Organizations provide for pension plans and other benefits for their employees which benefits them after they retire from the organization at the prescribed age.

 Holiday Homes Organizations provide for holiday homes and guest house for their employees at different locations. These holiday homes are usually located in hill station and other most wanted holiday 33

spots. The organizations make sure that the employees do not face any kind of difficulties during their stay in the guest house.

 Flexible Timings Organizations provide for flexible timings to the employees who cannot come to work during normal shifts due to their personal problems and valid reasons.

3.1.2. Need of Compensation Management

A good compensation package is important to motivate the employees to increase the organizational productivity.

Unless compensation is provided no one will come and work for the organization. Thus, compensation helps in running an organization effectively and accomplishing its goals.

Salary is just a part of the compensation system, the employees have other psychological and self-actualization needs to fulfill. Thus, compensation serves the purpose.

The most competitive compensation will help the organization to attract and sustain the best talent. The compensation package should be as per industry standards.

3.1.3. Strategic Compensation Strategic compensation is determining and providing the compensation packages to the employees that are aligned with the business goals and objectives. In todays competitive 34

scenario organizations have to take special measures regarding compensation of th employees e so that the organizations retain the valuable employees. The compensation systems have changed from traditional ones to strategic compensation systems.

3.2 COMPONENTS OF PAYROLL

Payroll refers to the administration of employees' salaries, wages, bonuses, net pay, and deductions. It consist of the employee ID, employee name, date of joining, daily attendance record, basic salary, allowances, overtime pay, bonus, commissions, incentives, pay for holidays, vacations and sickness, value of meals and lodging etc. There are some deductions such as PF, taxes, loan installments or advances taken by employee. Payroll is administered on monthly basis and annual basis. While administrating the monthly payroll basic salary, HRA, conveyance, and other special allowances such mobile, etc are considered. There are some deductions which are provident fund (12%) of the salary, taxes and other deductions.

Figure: Components of Monthly Payroll 35

Deductions such as tax and loan/advances taken by the employee from organizations are deducted only where applicable. Dearness Allowance and House rent allowance is provided at a fixed rate stated by the employment law. Provident fund is deducted from the gross salary of employee on the monthly basis as per the employment law, which is provided later to the employee. Organizations also contribute the same amount to the provident fund of the employee. Annual payroll consists of leave travel allowances, incentives, annual bonuses, meal vouchers/reimbursements, and medical reimbursements.

Figure: Components of Annually Payroll

Allowances, incentives, bonuses and reimbursements are based on organizational policies. Some organizations provided the allowances on a fixed rate say 10% or 12% of the basic salary. Some organizations go for performance based incentives.

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3. 3. PROCESSING OF PAYROLL
Payroll process typically functions, using a payroll supplier, an in-house payroll process assisted by computer systems, or an in-house system that is entirely processed by hand. These descriptions also include flowcharts of each process and coverage of the exact controls that are most useful for each situation. Additionally, the chapter covers the types of documents used to set up a new employee in the payroll system, how to organize this information into a personnel folder, and how to process changes to employee information through the payroll system The next three sections describe how the payroll process flows for specific types of system outsourced payroll, in-house computerized payroll, and in-house manual payroll. In this section, we cover the general beginning-to-end processing of payroll, step-by-step, irrespective of the specific payroll system, in order to show the general process flow. Though some of these steps will not apply to each of the processes noted in later sections, it gives a good feel for how a payroll is completed. The steps are: a) Set up new employees. New employees must fill out payroll-specific information as part of the hiring process, such as the W-4 form and medical insurance forms that may require payroll deductions. Copies of this information should be set aside in the payroll department in anticipation of its inclusion in the next payroll. b) Collect timecard information. Salaried employees require no change in wages paid for each payroll, but an employer must collect and interpret information about hours worked for nonexempt employees. Having employees scan a badge through a computerized time clock, punch a card in a stamp clock, or manually fill out a time sheet. c) Verify timecard information. Whatever the type of data collection system used in the last step, the payroll staff must summarize this information and verify that employees have recorded the correct amount of time. This typically involves having supervisors review the information after it has been summarized, though more advanced computerized timekeeping systems can perform most of these tasks automatically. 37

d) Summarize wages due. This should be a straightforward process of multiplying the number of hours worked by an employees standard wage rate. However, it can be complicated by overtime wages, shift differentials, bonuses, or the presence of a wage change partway through the reporting period. e) Enter employee changes. Employees may ask to have changes made to their paychecks, typically in the form of alterations to the number of tax exemptions allowed, pension deductions, or medical deductions. Much of this information must be recorded for payroll processing purposes, since it may alter the amount of taxes or other types of deductions f) Calculate applicable taxes. The payroll staff must either use IRS-supplied tax tables to manually calculate tax withholdings or have a computerized system or a supplier determine this information. Taxes will vary not only by wage levels and tax allowances taken but also by the amount of wages that have already been earned for the year-to-date g) Calculate applicable wage deductions. There are both voluntary and involuntary deductions. Voluntary deductions include payments into pension and medical plans, while involuntary ones include garnishments and union dues. These can be made in regular amounts for each paycheck, once a month, in arrears, or prospectively. The payroll staff must also track goal amounts for some deductions, such as loans or garnishments, in order to know when to stop making deductions when required totals have been reached h) Account for separate manual payments. There will inevitably be cases where the payroll staff has issued manual paychecks to employees between payrolls. This may be caused by an incorrect prior paycheck, an advance, or perhaps a termination. Whatever the case, the amount of each manual check should be included in the regular payroll, at least so that it can be included in the formal payroll register for reporting purposes, and sometimes to ensure that the proper amount of employer-specific taxes are also withheld to accompany the amounts deducted for the employee.

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i) Create a payroll register. Summarize the wage and deduction information for each employee on a payroll register, which can then be used to compile a journal entry for inclusion in the general ledger, prepare tax reports, and for general research purposes. This document is always prepared automatically by payroll suppliers or by in-house computerized systems. j) Verify wage and tax amounts. Conduct a final cross-check of all wage calculations and deductions. This can involve a comparison to the same amounts for prior periods, or a general check for both missing information and numbers that are clearly out of line with expectations. k) Print paychecks. Print paychecks, either manually on individual checks or, much more commonly, through a computer printer, with the print outs using a standard format that itemizes all wage calculations and deductions on the remittance advice. If direct deposits are made, a remittance advice should still be printed and issued. l) Enter payroll information in general ledger. Use the information in the payroll register to compile a journal entry that transfers the payroll expense, all deductions, and the reduction in cash to the general ledger. m) Send out direct deposit notifications. If a company arranges with a local bank to issue payments directly to employee accounts, then a notification of the accounts to which payments are to be sent and the amounts to be paid must be assembled, stored on tape or other media, and sent to the bank. n) Deposit withheld taxes. The employer must deposit all related payroll tax deductions and employer-matched taxes at a local bank that is authorized to handle these transactions. The IRS imposes a rigid deposit schedule and format for making deposits that must be followed in order to avoid penalties o) Issue paychecks. Paychecks should, at least occasionally, be handed out directly to employees, with proof of identification required; this is a useful control point in larger companies where the payroll staff may not know each employee by name, and where there is, 39

therefore, some risk of paychecks being created for people who no longer work for the company p) Issue government payroll reports. The government requires several payroll related reports at regular intervals, which require information on the payroll register to complete.

3.4. PAYROLL MANAGEMENT PROCESSES

Calculation of gross salaries and deductible amounts is a tedious task which involves risk. Some of the organizations use the traditional manual method of payroll processing and some go for the advanced payroll processing software. An organization opts for any of the following payroll processing methods available.

Figure: Various Payroll Processes

3.3.1. MANUAL SYSTEM Manual payroll system is the traditional payroll system which involves pen and ink, adding machine, spreadsheet, etc instead of computers, software and other computerized aids. The process was very popular when there were no computerized means for payroll processing. 40

Now-a-days it is only few small scale organizations in the remote areas that use the manual payroll. Sometimes the construction industry and manufacturing industry also use the manual payroll systems for the contractual labour, as theses contracts are on daily/weekly basis. There is full control in the hands of owner. But the process is tedious, time consuming and risky as it is more prone to errors.

3.3.2. ACCOUNTANT Accountant is a professional having a degree/diploma course in finance/accountancy. He/she is responsible for all the activities related to payroll accounting. He/she has the sound knowledge of accounting principles and globally accepted standards. The process adds costs to the organization. It involves paying someone who is responsible for calculating the salaries of others. The financial control regarding salary goes in the hand of accountant.

3.1.4. PAYROLL SOFTWARE In todays computerized environment, payroll system has also developed itself into automated software that performs every action needed by the payroll process. It helps in calculating the payable amounts and deductions very easily. It also helps in generating the pay slips in lesser time. Automated calculations result in no errors. Data is validated automatically by the software. It needs professionals to make use of the software for its efficient working.

3.1.5. PAYROLL OUTSOURCING Payroll outsourcing involves a third party (an outsourcing company) in the calculations of salaries and deductions. The outsourcing organization is responsible for all the activities of the payroll accounting. It saves time and cost for the organization. If there is more number of

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employees (say more than 900-1000) in the organization, payroll outsourcing would be very much beneficial. The data is provided to the consultants/outsourcing firms. The various payroll functions undertaken by the outsourcing organizations are as follows:

y y y y

Analysis of Payroll records, payroll taxes Medical claim processing Employee Insurance & Provident fund processing Quality Audit procedures & planning

 Significance of Payroll Outsourcing Outsourcing industry is growing at a higher rate. HR outsourcing helps the HR professionals free themselves from the daily routine work and take part in the strategic level processes. Organizations really do not take HR as a strategic function; it is merely treated as paper work division. Therefore they want to reduce the cost being spent on HR activities. In India payroll outsourcing is one of the HR processes and is being outsourced since 1997. Payroll outsourcing involves an external organization performing all the activities related to payroll management. Adecco has come up with payroll outsourcing. Outsourcing organizations strive for providing cost saving benefits to their clients. The organizations use its marketing division thoroughly to acquire more number of clients and retain them. Payroll outsourcing does not provide much cost reduction but it yield in high quality. Since compensation outsourcing requires lot of market survey and industry knowledge, it is not easy for an organization to carry the tasks with its operational business activities

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Figure: Benefits of Payroll Outsourcing

Outsourcing has benefited not only the service providers but also organizations and economy of the country. It enables the management to focus on the core competencies and strategic planning. It maintains the confidentiality of the pay package offered to employees as it is an external body administrating. Organizations do not have to keep the track of law related to salaries and compensation; it is the outsourcing firm which has to look after it. It offers qualitative results. It is very much time saving and cost effective. It also offers legal protection as the outsourcing firm is responsible for all the legal matters. Outsourcing firms enjoys the revenue benefits as the services are being offered to MNCs. Service exports have caused the economic system to develop more and contribute to GDP.

 Why Payroll Outsourcing In todays global competitive environment organizations need to focus on cost-cutting strategies and high qualitative results. Organizations has to deal with tax filling, they have to adhere to the sate employment law. These complexities have force the organizations to outsource their payroll processes. Outsourcing helps an organization to stay focused on the business operations. It results

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in cost-effectiveness and time saving. The organizations are relieved from law regulations and tax formalities.  Cost-Effective Payroll outsourcing results in cost effective benefits. A market study has revealed that outsourcing payroll process is cheaper than administrating the process internally. Organizations have to set an additional department for the purpose resulting in the salaries of those responsible for performing the activities of payroll process. It also includes the cost associated with payroll checks, bank accounts and other charges, record maintenance, computerized aids such as payroll software, etc

 Time Saving Payroll outsourcing saves a lot of time for management. Time spent on activities associated with payroll process can now be utilized for more strategic roles. The organizations can focus on their strategic decisions and business operation

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 Less Legal Adherence Organizations are not bound for any legal formalities. Outsourcing companies are responsible for following rules, regulations and filing the tax returns. They look after changes in the tax slabs and state jurisdictions. This provides management a great relief and enables them to focus on business operation.  Profit Generation Organizations can make use of new opportunities and utilize the time and money on new business ventures and generate more profits.  Error Free Payroll outsourcing results in error free reports. Internal payroll process is more prone to errors, but the service providers recruit professionals and they make sure there are no mistakes.  Qualitative Results The expertise and technological advancements results in qualitative results. There are no delays and no errors.

Figure: Reasons for Payroll Outsourcing 45

The survey also reported that 53% of the participant organizations outsource their payroll processes and from those who outsourced 25% believes that it results in more focused strategic decisions. Most of the organizations agreed that it is cost-effective measures.

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CHAPTER 4

INTERNSHIP ASSIGNMENTS AND DUTIES

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During the course of my training in ADECCO FLEXIONE WORKFORCE SOLUTION PVT. LTD I was assigned various duties and tasks through which I gained a lot of practical knowledge about the payroll process prevalent in the organization. I have made an effort to mention all those duties and tasks performed by me as a trainee and give an idea about the payroll process followed in the organization.

4.1.

PAYROLL ASSIGNMENTS

Following are the few assignments which I undertook in the organization through which I gained much needed practical exposure of the organizational culture and practices:  Verified New Entrants: Checked and verified various documents required to be submitted by the employee at the time of their introduction in the organization. The initial documents required included W-4 form, appointment letter, qualification certificates, pay slips of previous job.

 Made Salary Slips: Drafted salary slips for the new entrants as well as existing employees of the organization using the payroll information system.

 Verified PF and ESI Forms: verified the mandatory and compulsory clauses to be filled by the employees in their PF and ESIC forms and accordingly scrutinized them.

 Made MIS Reports: recorded and maintained employee information for recruitment and appraisal functions to be undertaken in the employees journey in the organization.  Sent Invoices: sent invoices to various clients for receiving due payments and sent confirmation after receiving the payments.

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 Verified Wage Entries: various additions and deductions in the wage ledger were verified by me in order to ensure justified payments to all the employees.  Prepared Pay cheques: the salaries and wages which were paid to the employees through cheques were cross checked before issuing.  Prepared Appointment Letters: the appointment letters issued to the new entrants were prepared and drafted according to the predefined standards and criteria.

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CHAPTER 4

RESEARCH METHODOLOGY

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The research work done for this report can be divided into following parts: In depth interviews and observation technique: The major source of information has been the information derived using in-depth interview technique. The professionals from the leading staffing companies were interviewed and their expert opinion and viewpoints have been used as the basis of this report. Secondary data: The information available on the internet has been other major source. Online articles, blogs and reports have been particularly made use of.

5.1. SCOPE OF STUDY

The expert opinion of the professionals associated with the staffing industry, payroll process forms the basis of this report.

5.2. TOOLS AND TECHNIQUES USED FOR DATA COLLECTION

A structured questionnaire shall serve as the research instrument for data collection. Discussions with the different officials in Adecco shall provide useful inputs in the form of to achieve the objective of study.

5.3. TYPE OF RESEARCH

Exploratory Research - It provides insights into and comprehension of an issue or situation. It should draw definitive conclusions only with extreme caution. Exploratory research is a type of research conducted because a problem has not been clearly defined. Exploratory research helps determine the best research design, data collection method and selection of subjects. Given its fundamental nature, exploratory research often concludes that a perceived problem does not actually exist.

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5.4. SOURCES OF DATA

 Primary Data: Primary data are collected with the help of questionnaire, interviews and observations.  Secondary Data: Secondary data are collected from company website, Boucher, HR books.

5.5. UTILITY OF THE STUDY

 This study gave us an insight that at what level Adecco has its reach to the general public. This study will help to know the current business potential for the consultancy. There is tough competition throughout Jaipur. Public interaction helped us to know what employee want.

5.6. LIMITATIONS OF RESEARCH

y

Sample size was very small, and area of research was restricted to Jaipur only. So it cannot give a fair result.

y y y y

Data collected cannot be reliable and accurate. Gathering and processing data can be very expensive. The collection of data can take a longer time. Some ethical and legal constraints related to security of data.

5.7. DATA ANALYSIS AND INTERPRETATION

Requirement- Study of Payroll Process

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5.7.1. Save Weeks of Time Axia Checklists enable you to specify your new HR and Payroll systems requirements, RFIs, RFPs much faster than traditional methods. Virtually all the functional systems requirements are listed - all you do is score those needed. You dont have to think up your requirements from scratch.

No matter how complex your future HR and Payroll systems needs, the Checklists can help you to be more systematic and thorough when gathering or specifying your requirements, enabling you to complete your user needs / specification / RFI / RFP in just days.

5.7.2. Save Effort

The HR Payroll Systems Checklists have been carefully researched to cover virtually all functional system requirements, listing 880+ system wide, operations, technology and support functions, 2020+ HR functions, 1290+ Payroll functions, plus 460+ business analysis and overview criteria (in the Corporate version). They are based on UK and general HR Payroll systems with additional country specific criteria for USA, Canada, Australia and New Zealand.

The Checklists will stimulate your thoughts, give you ideas and make you aware of what the latest HR Payroll systems can do.

Written in Microsoft Excel, any additional requirements can easily be included, amendments made and criteria not needed can be deleted. You have complete control.

The Checklists will save you effort by:

y y

saving you time gathering or specifying your requirements quickly creating the specification or RFI/RFP for issue to software vendors

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allowing you to work the way you want to - either on screen, on paper, or a mix of both (using multiple copies for your own internal use)

providing space and flexibility within the Checklist, to enable vendors to respond to each of your requirements

including a pre-built format for evaluating and scoring vendor responses - to enable you to carry out an impartial evaluation of the software / vendor response

5.7.3. Save Money

These Checklists are specifically designed for you to use yourself, without needing to employ additional staff or resources.

5.7.4. Reduce Risk of Wrong HR Payroll System Selection

The Checklists provide an industry standard approach to assemble your requirements in an orderly, structured way. When used as part of an RFI or RFP, they enable prospective vendors to respond to your specific needs without confusion, in a standardized format. And hence ensure an easy and impartial comparison of proposals and identification of the best solutions.

5.7.5. VERSIONS TO SUIT ALL TYPES OF ORGANISATIONS

small medium and large size organizations (with turnovers from 5m to 500m), including:

y y y

commercial companies / businesses and non-profit / government organizations HR, Payroll or IT staff, functional specialists, managers, directors any person or organization involved with specifying a new HR or Payroll system

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5.7.6. CHECKLIST IMPARTIALITY

The Checklists are totally impartial and have no bias towards any HR or Payroll software package or vendor.

5.7.7. When to use a Checklist

If you are planning to replace your HR or Payroll system in the future, you should review these Checklists. Youll benefit most, prior to contacting software vendors. As this will focus your thoughts on your specific needs rather than being side tracked with potentially unsuitable solutions.

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CHAPTER 6

FINDINGS, CONCULSION AND RECOMMENDATION

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6.1. FINDINGS

All the employee of the HR Department is satisfied with the PAYROLL PROCESS INFORMATION SYSTEM It is introduced only since last year. They said that it is very effective for their management and increased in performance also. Most of the employees working in Adecco find the performance of HR department is good but few of them are not satisfied and want even activities to motivate the employees to be included. It is found that training after the selection is compulsory for every employee before starting his/her job. But according to the responses of few employees it was realized that review of the training program is required. ADECCO gives preference to payroll process as well as it work on recruitment and it provide placement. Adecco is one of consultancy which recruits employees

6.2. CONCLUSION

This presents the summary of the study and survey done in payroll process in ADECCO FLEXIONE WORKFORCE SOLUTION PVT.LTD. conclusion is drawn from the study and survey of the company regarding the payroll process. No source is good or bad in itself in all circumstances and for all employees. No single of payroll process can suit all the companies for filling up the posts of different nature and at different times. Most of the employees were satisfied but changes are required according to the changing scenario as payroll process has great impact on the working of the company as a fresh blood, and also impact on clients.

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6.3. RECOMMENDATIONS

 Payroll policies should be followed properly.  Both the sources of payroll internal as well as external should be given equal importance.  The company should provide induction and orientation program after the process of selection of employees.  The HR policy of the company should be clear and specific.  Time Management is very essential and it should ignored at any level of the process.

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BIBLIOGRAPHY

BOOKS:

 C.R Kothari, Research Methodology Methods and Techniques, Second Revised Edition,  Gary Dessler, Human Resource Management, Tenth Edition  V.S.P. Rao, Human Resource Management

WEBSITES:  www.adecco.com  www.google.com  www.scribd.com  www.adeccoworldwide.com  www.citehr.com

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ANNEXURE 1
QUESTIONNAIRE

1. Is time worked by non salaried staff adequately recorded and authorized? 2. Is leave and absence through sickness properly controlled? 3. Is the original pay rate authorized in writing and subsequent amendments properly approved? 4. Are changes to allowances and deductions properly approved? 5. Is there a periodic check by independent staff, comparing the payroll and personnel records? 6. Is access to the payroll and personnel records, whether manual or computerized, adequately controlled? 7. Are the number of employees, amounts paid, and allowances and deductions, reconciled from one period to the next? 8. Is the calculation of a sample of employees net pay periodically checked? 9. Is there a satisfactory system of budgetary control? 10. Do procedures ensure staffs leaving the company are cancelled from the payroll? 11. Do terms and conditions comply with local labor laws? 12. Are proper provisions made for leave pay and EOSB and are these provisions periodically reconciled? 13. Are there adequate controls over staff advances? 14. Are all timesheets calculated using a standard payroll-rounding model? 15. Are new employees required to complete an Employees Benefits Checklist? 16. Are new employees provided the necessary information and forms to have their checks deposited directly to their financial institution?

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ANNEXURE 2

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ANNEXURE 3

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ANNEXURE 4

UDB, Manat Tower, 3rd Floor Plot no. 13-14, Cosmo Colony, Amarpali Marg, Vaishali Nagar, Jaipur (Raj.)

012/08/2010 Mr Dear Letter of Employment

We are pleased to offer you employment in our organization Adecco Flexione Workforce Solutions Limited, situated at UDB, Mannat Tower, 3rd Floor,Plot No. 13-14, Cosmo Colony,Amarpali Marg, Vaishali Nagar,Jaipur (Rajasthan) (Company) as (Contract), on the following terms and conditions:

1. The term of your employment shall be valid for a period of 12 Months from withstanding 13/08/2010 the project/work/deputation for which you are being employed terminates before the aforementioned period; this Contract shall be co-terminus with the project/work. 2. You shall report to work on 13/08/2010 am. At client premises. 3. Details of your salary break up with components are as per the enclosure attached herewith. 4. This contract shall be terminable by either party giving seven days notice in writing or salary in lieu of notice, to the other party. 5. You will, with effect from 13/08/2010 deputed by the Company to work at the clients office/ premises at any of their locations, either onsite or offshore. 6. You will be governed by the policies of the client's organization with respect to leave and holidays. In addition, to the terms of appointment mentioned above, you are also governed by the standard employment rules of the company, which are attached along with this letter. The combined rules and procedures as contained in this letter and the annexure will constitute the standard employment rules and you are required to read both of them in conjunction. 63

Heres wishing you the very best in your assignment with us and as a token of your understanding and accepting of the standard terms of employment, you are requested to sign the duplicate copy of this letter and return to us within a day. With warm regards, Yours truly, For Adecco Flexione Workforce Solutions Limited

(Authorised Signatory) Enclosures: - (i) Compensation sheet; (ii) Standard Terms of Employment I hereby accept the above-mentioned terms and conditions. Name: ______________________ Signature: ________________ Date: ___________

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ANNEXURE 5

Compensation Sheet

Name : Designation :

Heads Basic HRA Conveyance Allow. Special Allowance Gross Salary

Rs. Per Month

Other Employer Costs Contribution to PF @ 13.61of Basic Contribution to ESI @ 4.75% of Gross Insurance Cost to Company: (CTC) Less: Deduction: Employees Contribution to PF Employees Contribution to ESI Take Home :

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