We all might have heard of the word implementation strategy, specifically, a phased approach from several clients. Let's have a deep overview of some policies for companies pursuing workday along with their different phases.

Phase 1: How Does Payroll method work for companies?

When it comes to a phased tactic for workday implementation, one of the most crucial things to keep in mind is to find out where and how payroll falls best into the picture. For example, most businesses divide the first step of their implementation into three phases: In the first phase, the HCM modules are involved who tell about payroll; in the second phase, a 3-4-months transition cycle is associated which works great with these modules; and final phase include the payroll execution.

The potential to maintain these payroll-adjacent modules is one of the main benefits of this type of phased approach. The only disadvantage it has is that it requires multiple data entry for all changes in two systems of truth such as in Recruitment and retention/job alterations/reporting framework/cost center, contracting / termination, compensation transfer, personally identifiable information (address, legal name, etc.), salary, etc.

That is why we suggest add payroll in the remaining of Step 1. It simply means that you don't have to do the job to get all the data where it has to be and it reduces the risk of a mistake when somebody places Data A in one system of truth, then Data B in another.

Which HCM Modules instruct about Payroll?

There is a huge range of workday modules that can notify payroll, but there are a few that need to be addressed including) Absence, Time Tracking (TT), and Workday Absence Management (ABS). Absence or Time Tracking can be applied from Workday itself or as integrations totally depending on how specific the criteria are.

Taking an example of hospitals which have complicated planning criteria, and workday time tracking helps workers to monitor their working hours, but it does not handle complex scheduling of the future.

ABS is used to track unworked employees paid and unpaid hours, including complicated Earned Hours Off (ETO) and Paid Time Off (PTO) estimates of Sick Time, Earned. This also covers the FMLA (Family Medical Leave Act) compliance estimates and the residual job-protection or unpaid hours that will apply to the already used FMLA time.

What happens if we don't want to utilize Workday payroll?

If you do not switch to Workday Payroll, functionalities are necessary to control data into your legacy payroll system which cannot be postponed to Phase 2 involving:

• Changes in the demographic / operations / payroll rate
• Changes in management
• Dates for commencement
• Changes in job
• Changes in the cost center
• Changes in LOA status

Then there will possibly be a different implementation exclusively for the recorded time of hourly workers versus the use of PTO for casual or salary-earners. Often, if there are labor agreements or many forms of time difference switch codes, this should be expressed by the SoW as they may make the installation for time monitoring considerably longer.

Phase 2: What’s the remaining part to be done?

After all the HCM components that inform Payroll calculations have been incorporated (with the Workday Payroll), it's important to incorporate all of your other modules. This may include Performance Management (PM), Recruitment (request for jobs or recruitment by approval of offer), Succession Planning, Premium Pay (incentive performance assessments or annual bonuses that may include equity awards), and much more.

Essentially, Phase 2 functions strive to be those who are more skillful in HR space and are introduced after the "technical details" of getting HR transfers into Workday. Phase 2 could also take the form of working-day financing. Although Workday Financials can definitely be implemented with only the bare bones of an HCM. It is a very backward way to deploy Financials.

It's an extremely complicated method to implement Workday. There is the issue of whether to follow a phased approach and where to include payroll in that process. It, of course, includes a lot of complexity.