Digitalisation of payroll processes at Aalto University
Sorvari, Iina (2016)
Sorvari, Iina
Haaga-Helia ammattikorkeakoulu
2016
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-201603163268
https://urn.fi/URN:NBN:fi:amk-201603163268
Tiivistelmä
The purpose of this thesis is to support Aalto University payroll department in incorporation of digital payroll solutions. The transition towards paperless payroll management has long been discussed in the university, but a comprehensive research on the advantages and weaknesses, expenses and savings and the necessity of the project has been called upon before undertaking the project.
The aim of the thesis is to map out the current payroll processes and to analyse the problem areas, which could potentially be solved by digital solutions, within these processes. It intends to provide a critical analysis on the threats and advantages related to digitalisation and to study what the general perception towards digital solutions is within payroll professionals and whether they are prepared to adopt digital solutions.
The theoretical part of the thesis studies payroll management. It elucidates what salary consists of and what legal factors are associated with payroll management. It also analyses the evolution of digitalisation so far and what threats and advantages it has brought about in payroll management. Digitalisation allows payroll management to handle payroll data with modern tools and automated processes. Different payroll processes are performed with as little manual work and consumption of paper as possible.
The study uses a mixed methods research design to analyse the research findings. Qualitative method is used to document the perceptions of payroll professionals towards digitalisation and a quantitative method to identify the variance. Qualitative data was gathered by interviewing Aalto University staff. Quantitative data was research through a survey, which was sent to Aalto payroll professionals and analysed with SPSS Statistics software. Mixed methods design resulted in a more complete and in-depth understanding of the research question.
The research revealed that the problem areas in payroll processes centre around the erroneous data on the arriving payment material as well as two particularly time-consuming payroll processes: non-digital archive and checking the payment material before the final payment. Payroll professionals are open to new digital innovations, which could bring improvement to these problem areas but concerns towards information security risks, decreased need for human workforce and incapability of electronic data to deal with exceptional circumstances remain.
Aalto University is an international organisation of 5000 staff and 20 000 students located in the Helsinki Metropolitan area. University’s foundation in 2010 stemmed from an idea of a new innovative university combining art, technology and economics.
The aim of the thesis is to map out the current payroll processes and to analyse the problem areas, which could potentially be solved by digital solutions, within these processes. It intends to provide a critical analysis on the threats and advantages related to digitalisation and to study what the general perception towards digital solutions is within payroll professionals and whether they are prepared to adopt digital solutions.
The theoretical part of the thesis studies payroll management. It elucidates what salary consists of and what legal factors are associated with payroll management. It also analyses the evolution of digitalisation so far and what threats and advantages it has brought about in payroll management. Digitalisation allows payroll management to handle payroll data with modern tools and automated processes. Different payroll processes are performed with as little manual work and consumption of paper as possible.
The study uses a mixed methods research design to analyse the research findings. Qualitative method is used to document the perceptions of payroll professionals towards digitalisation and a quantitative method to identify the variance. Qualitative data was gathered by interviewing Aalto University staff. Quantitative data was research through a survey, which was sent to Aalto payroll professionals and analysed with SPSS Statistics software. Mixed methods design resulted in a more complete and in-depth understanding of the research question.
The research revealed that the problem areas in payroll processes centre around the erroneous data on the arriving payment material as well as two particularly time-consuming payroll processes: non-digital archive and checking the payment material before the final payment. Payroll professionals are open to new digital innovations, which could bring improvement to these problem areas but concerns towards information security risks, decreased need for human workforce and incapability of electronic data to deal with exceptional circumstances remain.
Aalto University is an international organisation of 5000 staff and 20 000 students located in the Helsinki Metropolitan area. University’s foundation in 2010 stemmed from an idea of a new innovative university combining art, technology and economics.