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Employee's Corner |
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NBC Profile |
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NBC PROFILE - SUMMER 2005
NBC Payroll Business Grows Increasing Functionality, Decreasing Costs |
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The cost curve is going in a favorable direction for the customers of the National Business Center's (NBC) Payroll and Personnel Systems and Services. While the general business trend seems to be one of ever rising costs, the charts below show that NBC payroll customers have seen their W-2 unit costs plummet to 25% less than indexed levels ($185 versus $246), while at the same time experiencing an amazing 520% increase in system functionality.
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FPPS Functionality - 520% Functionality Increase
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A customer-centric focus and a strong commitment to the NBC's mission to provide quality service and innovative solutions to meet customer needs, in conjunction with research and development of future technologies, have been the cornerstones of the success and expansion of the NBC's payroll business. External clients represent 55% of the total customer base, enabling the NBC to achieve economies-of-scale not possible without them.
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Personnel/Payroll Unit Cost - FY06: $180 per W-2 if all e-Payroll clients are fully implemented on schedule.
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The newest members of the NBC's payroll family have joined us as a part of the e-Payroll Initiative. E-Payroll is one part of the e-Government element of the President's Management Agenda. Coordinated by the Office of Management and Budget and managed by the Office of Personnel Management (OPM), it is designed to save taxpayer dollars and to streamline government payroll operations by reducing the number of Federal civilian payroll providers from 26 down to only 4 providers. In January 2003, the DOI's NBC was selected as a provider and given an aggressive implementation schedule to migrate new e-Payroll clients.
When fully implemented, all customers will benefit from the e-Payroll Initiative through a reduction in their unit rate due to further economies-of-scale, as well as from enhanced system capabilities and expanded human resources products and services in the future. Additionally, taxpayer dollars are saved by not maintaining and enhancing 26 separate systems.
NBC Successfully Migrates e-Payroll Clients
The NBC has been extremely busy migrating e-Payroll clients to its Federal Personnel Payroll System (FPPS) and payroll operations services. Successful migrations under this initiative include the Nuclear Regulatory Commission and the Department of Transportation's (DOT) Surface Transportation Board in November 2003, the National Science Foundation in May 2004, and the DOT's Saint Lawrence Seaway Development Corporation in July 2004. In August 2004, the NBC implemented the National Aeronautics and Space Administration (NASA) without a glitch. The largest migration is currently underway, and in FY 2005, the NBC will bring on board the remainder of the DOT. The OPM has repeatedly recognized the NBC as being an e-Payroll leader based on the success of these migrations. In January 2005, the NBC discontinued using the system that has been paying emergency firefighters for many years and will begin paying all casual workers of both the U.S. Forest Service and the DOI from the FPPS. With this increase from the e-Payroll clients and emergency firefighters, the NBC is paying over 300,000 employees.
Migrating a new agency to the FPPS involves mapping of the client's existing personnel and payroll data to our system and then automating its actual transfer. It involves many system modifications to accommodate the agency's unique personnel and pay requirements based on regulatory, union, and business requirements. It also requires working with the agency to modify their internal business practices where applicable. Two complete pay periods of parallel processing are accomplished as part of the migration, with a complete pay reconciliation performed. Migration requires establishment and/or validation of the client's telecommunications network, infrastructure, and security controls. Educating new clients on how to use the NBC's systems is another key piece of the migration process. The NBC training programs are tailored to the client's specific needs and schedules. The goal is to have all users fully competent to use the NBC's payroll products and services by the time parallel processing begins. For most agencies, the migration process takes approximately one year.
During this busy time, the NBC's staff has shown great dedication and professionalism working with our new clients, identifying new requirements, making systems changes, ensuring the success of migrations, and reacting to emerging issues. Notwithstanding these migration efforts, the NBC's first priority has always been and continues to be providing premier customer service to our existing clients.
The NBC is extremely proud to have been chosen as one of the e-Payroll providers and to have successfully brought so many more clients on board in FY 2004. The NBC fully supports the goals of the e-Payroll Initiative and will continue to implement the best payroll business practices in order to provide Federal employees with the best payroll products and services. The NBC is strongly committed to continuing to provide all of its customers quality payroll services at a reduced cost, while increasing their access to human resource and payroll information.
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