Telstra’s HR and Payroll systems meet new workforce vision

Telstra’s vision for a world class platform meant transforming an outdated and inefficient HR and payroll system. To meet this vision, Telstra partnered with DXC, who now manage Telstra’s outsourced Payroll and HR System Services. This included the migration of Telstra’s SAP System to ECC 6.0, on-going applications management and hosting services.

Telstra’s HR and Payroll systems meet new workforce vision

As Australia’s largest telecommunications and media company, Telstra is one of the nation’s most recognised brands. The company offers voice, mobile, internet access, managed service solutions, pay television and other entertainment products and services.

DXC Business Process Services helps deliver service delivery improvements

Telstra’s network and systems infrastructure is the backbone of the business. This infrastructure carries the majority of Australia’s domestic and international voice and data telephony traffic.

Its global networks and managed services business has more than 1,100 points-of-presence throughout Australia, Asia Pacific, Europe and the US. Telstra is also a premier provider of international voice and satellite service across Asia. If it is to continue to thrive, the business needs to have the ability to respond quickly to changes in the global telecommunications market. To achieve this Telstra wants to optimise its most important asset: its people.

A central part of this people focus was the transformation of the in-house HR and payroll system running on SAP. Over the years since this payroll system was implemented, the company had grown and changed. The old system no longer provided the process clarity required; it only supported localised payroll enquiry handling; and a significant volume of paper-based transactions created inefficiencies. Fundamentally, Telstra’s needs and technology advancements meant the system was no longer fit-for-purpose.

The decision to centralise the operation was based on the business case of outsourcing the function to improve efficiency across a range of measures, which included upgrading the HR and payroll system from SAP 4.6C to SAP ECC 6.0.

“At the time this was arguably the most complex HR and payroll structure of any company in Australia,” says Darren Fewster, Telstra’s executive director responsible for Shared Services across HR. “The pay and people structures and processes were evolving as Telstra moved from a fully owned government entity, through part privatisation and then full privatisation. We had the complexity of legacy terms and conditions and new arrangements as we sought to transform the company in a highly competitive and regulated telco industry.”

At the same time, DXC configured a technology solution for hosting and managing the infrastructure used to support the upgraded People Express system.

Since 2010 DXC has provided Telstra ongoing operational services including applications development and maintenance and hosting services. These services are underpinned by DXC Integrity and ProLiant Servers; DXC Storage; DXC Quality, Performance and Business Availability Centers; Network Management Center and Client Automation Center.

During the initial few months of the contract, there were some teething problems involving accuracy and processes however the DXC team were proactive in solving these issues in partnership with Telstra.

Telstra has seen improvements in the accuracy of payments, billing days, employee access, speedier delivery of service and scoring positive levels of employee satisfaction with the systems which are part of the DXC key performance indicators (KPI).

Fewster says: “We’re receiving the support from DXC that we really value. This is a partner that is focused on constantly improving performance; a partner that proactively brings technology ideas to our attention. DXC has the skill and experience to play a constructive role in our global growth plans. We have engaged DXC to partner with us in our new operations domestically and internationally.”

The move is producing the required efficiency benefits. “We’re achieving greater economies of scale by the decommissioning of multiple, outdated, high cost systems,” says Fewster. “We now have a common, centralised, co-sourced HR and payroll shared services model. This helps us frame our strategy with regard to organisational planning and labour management.

“Employees and managers have access to the information they need to carry out their duties. At the same time it provides employees with the best possible user experience for their HR data.”

Another important goal was to eliminate the wasteful occurrence of inconsistent processing standards. Accuracy and reliability is a key KPI which is being delivered as work transitioned from paper-based processing to the new system.

The high level of employee satisfaction clearly reflects this improvement with a Net Promoter System (NPS) score of above +70 for our HR system and pay queries. “The NPS is a simple metric that shows how well we are performing services for our employees. A consistent score above 70 demonstrates strong employee satisfaction,” explains Fewster.

Security of Telstra’s employee and organisational data is mandatory. DXC has provided new functions to the People Express system to improve user experience and to ensure the system is kept current and secure. People Express was assessed at golive for compliance with ISO 27001 standards and the Australian Privacy Act 1998.

In the early months of 2014, a joint Telstra/ DXC team migrated the hosting of People Express to DXC’s new state of the art data centre in Sydney. “This exercise was completed seamlessly with no unplanned outages or impact to the service,” says Fewster. “It was a great team effort and typifies the strength of our partnership with DXC.”

Only DXC HR and Payroll Services creates the foundation for the development of Telstra HR digital strategy goals. “This allows us to take advantage of the new functionality on a regular basis,” says Fewster, “especially availability in a single digital portal, accessible by the employee on any device, anywhere. Mobility and access for our people to our systems anytime, anywhere, on any device, is our focus. DXC is working closely with us on our mobilisation strategy to make this a reality.”

As Telstra expands into Asia, Fewster foresees an ongoing partnership. “DXC is already providing payroll services for Telstra in the Philippines and is achieving a good track record.

“The platform being hosted by DXC will support the development of a multi-country, multi-currency, multi-jurisdictional solution which will facilitate projected growth and increased business diversity across the Telstra Group,” concludes Fewster