Think Global, Act Local - International Payroll Platform Strengthens Governance & Efficiency at Henkel

Carsten Bertling, Regional Head of HR Europe & Global Head HR Governance, Systems and Processes, Henkel [ETR: HEN3]

The human resource management of international companies is becoming increasingly extensive and complex due to the ongoing globalization and digitalization. Growing volumes of data make it necessary to establish modern IT infrastructures and implement innovative technological solutions. Standardized and efficiently managed global HR processes can significantly contribute to establishing holistic corporate governance and meeting increasing compliance requirements. 

Consumer goods and adhesive manufacturer Henkel employs nearly 50,000 employees from 124 nations worldwide, with approximately 85 percent of them working outside of Germany, the company's home country. The company generates large quantities of personnel data that need to be continually updated and analyzed. Therefore, our global HR management faces the challenge of consistently digitizing HR processes while considering country-specific labor laws and regulations, such as data protection requirements. 

At Henkel, we used to utilize more than 150 different payroll and time & attendance systems worldwide for over 60 countries, some of which were not centrally connected through an HR core system. Henkel has a history spanning 147 years, and these individual systems for payroll and time tracking have grown historically, in part due to the expansion and acquisitions of other companies. With the kicking-off project, HarMoney Henkel aims to migrate local systems into a global application and standardize local HR processes as much as possible.

The diversity of systems at individual locations limited transparency, especially regarding personnel and payroll costs. Furthermore, due to decentralized control and differing approaches to data aggregation and input, there is an increased risk of input errors and compliance issues.

Investing in global social standards

In order to prevent these issues and harmonize the various payroll and workforce management systems, a centrally controlled solution was necessary. Therefore, we established a digital platform and initiated the "HarMoney" project in 2020. So far, we have replaced and finally shut down eleven local systems and integrated around 30 applications from different regions into one global payroll and time tracking system, which now serves as the foundation for a corporation-wide standard.

Currently, we are already using the new "Dayforce" platform to manage over 13,000 Henkel employees in 13 countries. The project is planned to run for at least five years, making it the largest HR system transformation in over a decade. "HarMoney" is managed by Düsseldorf, with approximately 30 employees worldwide working on it, covering all regions from the USA to the Asia-Pacific region, LATAM, Europe, the Middle East, and Africa.

" Henkel has a history spanning 147 years, and these individual systems for payroll and time tracking have grown historically, in part due to expansion and acquisitions of other companies. "

So far, we have transferred 32 HR processes to "Dayforce." This allows us to globally manage regular working hours and overtime, monitor compliance with social standards regarding working hours, and digitally access schedules, absences, and payroll. The project, therefore, also contributes to Henkel's global HR reporting and social responsibility. 

Further, the savings achieved in individual countries as a result of this initiative are going to be reinvested in the further rollout of the project in other countries. Thus, "HarMoney" represents a deliberate investment on our part in establishing globally consistent social standards, particularly in terms of time tracking. 

Cloud platform controls risk management.

Our platform "Dayforce," has a forward-looking, cloud-based infrastructure. By integrating as many of the previously used system providers and providers as possible, we were able to establish a more consistent risk and control system across the corporation. This more homogeneous system architecture not only significantly increases cost efficiency but also enhances transparency, user-friendliness, and IT security for handling personnel data.

“Dayforce” also provides a native mobile app for use in managing and communicating schedules and more. Additionally, payroll information can be delivered and accessed through mobile devices.

Ongoing global rollout

Thanks to the consideration of social aspects such as appropriate work schedules and compensation, we can apply the insights from our data analyses to other areas, such as talent acquisition and career planning. This is especially valid for countries where separate systems for payroll and talent management were previously in operation. 

The system management and operational payroll & T&A tasks for “Dayforce” are now conducted through our regional Shared Service Centers (SSCs), which support standardized HR processes. Henkel operates SSCs in Manila for the APAC region and the USA, in Bratislava for Europe, in Cairo for the EMEA region, and in Mexico for LATAM. Approximately 50 experts currently support the local HR organization in Payroll & T&A. The teams are foreseen to be expanded further with the ongoing rollout of additional countries.

Just recently, we achieved a significant milestone in our rollout with the successful Go-Live of "HarMoney" in the United States. The USA is our largest single market, where we employ approximately 8,000 employees across 60 locations. In the upcoming year, the project is set to be rolled out in an additional 18 countries, adapted flexibly to meet local conditions.

High acceptance among the HR community

Successful transformation projects and sustainable compliance with HR processes require the active involvement and consideration of all our employees and teams from more than 60 countries, along with their needs, experiences, and expectations.

To get all HR teams worldwide on board with the project, we have developed and offered special training programs and installed more than 250 modern time-tracking clocks. So far, the response from people within the corporation to the project has been predominantly positive. This aligns with Henkel's international leadership commitments, which state that every employee, regardless of their position, can contribute to improving the collaboration and innovative capacity of the corporation and accelerate cultural transformation.

Risk Management

Human Resource