Case Study: Budget Group, Inc.
Project Summary:
An Intranet compensation system was custom designed to manage the merit and incentive pay out process and provide managers with guidelines that help automate the process and reduce overhead expenses.
Company Bio:
Budget Group, Inc. is one of the world’s leading vehicle rental companies with revenues of $2.4 billion, and subsidiary companies that have two of the largest and most recognized brand names in the world: Budget Rent a Car and Ryder TRS. As one of the world’s top three car and truck rental systems with a global presence in over three thousand locations in more than 120 countries, Budget strives to define the car rental industry through precedent-setting products and services.
Project Background:
The vice president of compensation and HRIS, and a colleague spent 10 hours a day — 80% of their time — from November through April managing the compensation administration process in order to meet the annual deadline for raises and incentives. They would then provide management with compensation reports created in Excel by a coworker. Simultaneously, they were paying more than $600,000 a year in consultants’ fees in order to perform the other functions for which the department was responsible. The VP realized the need to invest in a compensation management system that would alleviate the time spent on merit and incentive calculations.
Business Challenges:
- Needed an HR software application to be integrated with Budget’s IT infrastructure which included a PeopleSoft application that ran on an Oracle database
- Protect the data integrity of the PeopleSoft system
- Design a user-friendly interface to speed up reporting capabilities
Schindler Technology Advantages:
- Schindler Technology’s human resource information systems expertise
- The ability to present data in a logical and compelling way
- Flexibility of the offering
- Short implementation time
- Ease-of-use
- Overall cost effectiveness
Solution Overview: Cutting Costs and Increasing Efficiency:
Schindler Technology designed a system to allow nearly 200 managers throughout the country to view the PeopleSoft data in “trees” so that they can see details about those people whom they manage.
Power to the Managers:
The screens provide information that enables manager’s to assess data integrity as well as provide compensation administration guidelines. The ability to view this data allows the managers to make more informed decisions. Additionally, they can view exception reports that help them see which employees received merit raises outside the suggested, standard guidelines so they can make decisions and adjustments accordingly.
Integrated Reporting:
The reports are also shared in advance with other operations departments, such as finance so they can plan for budget increases. The managers found the system so useful, they asked for year-round access in order to have up-to-the-minute compensation information about their employees.
Real-time Tracking & Year-Round Efficiencies:
The custom system has even automated tracking of internal transfers. In the past, if a person transferred from one location to another within the company, it added significant manual complexity to the incentive process resulting in approximately 400 hours of additional calculations. Through the use of Schindler Technology’s application, Budget has re-allocated those 400 hours to other priorities.
Cost-Effective Solution/ROI:
After the successful launch of what Budget internally calls the “Compensation Dashboard”, the company has one person spending approximately half their time on the merit and incentive payouts and has cut its consulting expenditures to $100,000 a year by using internal resources. Other departments within Budget are realizing ways the HR application can be tailored for use within the scope of their jobs and Budget has future plans to broaden the use for enhanced business intelligence and decision support across the company.
