As any Workday user with a global workforce knows HCM comes with “marriage” to the Payroll Integration Common Output File (PICOF). This is Workday’s certified cloud connector for third-party payroll vendors – until now!
This year, Workday introduced a new format – Payroll Effective Change Interface (PECI). This new technology has brought with it far more than a name change.
The new integration allows you to extract the full stack of transactions in a pay period rather than just those that are top-of-stack. Instead of only seeing the latest changes, you now have full visibility of all changes made in any given pay period. These changes can be sorted and grouped chronologically.
If you have an employee who went on leave and returned from leave in a single pay period. Or worst case scenario, you forgot to input them as “on leave” in the system and now they are back from leave already. PICOF only sent the last transaction, or “top of stack”. In each batch you wouldn’t know that they went on leave, only that they returned.
Now you can see ALL the transactions. You don’t have to worry about “cheating the system” by entering staffing events over different days and you can add that leave and the return in one fell swoop.
PECI also captures indirect data changes that, in the past, were overlooked in PICOF.
Remember that time when you updated the benefits plan with a new rate and it was not reflected when integrating at the employee deduction level? Or when you changed the FTE% against the position, but the integration didn’t reflect this in the Compensation section? These are things of the past with PECI.
However, there are a lot of details surrounding payroll with employee data management and payroll data, so there is bound to be a correction needed from time to time.
With PECI, these corrections are labeled as rescind(R) or correction(C) in the data file passed to the payroll processor. That means an automated correction process, a process that no longer requires you to open a ticket to update payroll.
Imagine a world with fewer tickets! Less opening, less tracking, less answering. Naturally there will be less reporting on silly little things which are so simple to just “undo” in Workday.
So far, you might be thinking that you don’t need to change to PECI because you aren’t really affected by the top two features.
It’s true that the impact will vary. It’s possible that your payroll team doesn’t make multiple transactions in a pay period and they never make mistakes. But now, you may want to think about building your payroll with the future in mind.
As a Workday user, you know that they are always working hard to bring innovations to the HCM world, including payroll. In fact, their theme this year for Workday Rising is “Go Further Together”. So why not incorporate the latest and greatest technology they have to offer?
For example, have you heard of Visual Presentation Services (VPS)? It utilizes the Workday look and feel while leveraging the content of the underlying Payroll Service(s). This captures local data directly in Workday. In addition it provides a seamless and transparent experience with all data capture in one place.
At NGA HR, our Payroll Exchange tool (PEX) allows you to connect Workday to payroll capabilities in 188 countries. It collects local data entry through the use of PEX forms.
With Workday VPS, you can visualize those same PEX forms in the Workday user interface. This allows HR professionals to enter local payroll data directly in Workday. Also, it has a real time validation with the underlying payroll service. This highlighs errors at the point of data entry. Therefore, there is no need to log onto a separate system!
This will complement VPS (starting with WD30) and provide real time integration to the payroll service for key staffing events. This will allow VPS to be embedded as part of the New Hire business process, capturing the employee and payroll data in the same process.
But alas, this VPS and EDI capability is only available when PECI is the integration technology, not PICOF.
NGA HR is one of few vendors who support both PICOF and PECI and our collaborative goal with Workday is for you to gain complete, global visibility and maintenance of your workforce within Workday HCM. We have committed our resources to ensuring that our Payroll Exchange is certified in PICOF and PECI interfaces.
Currently, we have 37 certified countries on PECI and this number is expected to rise to 60 before the end of the year. Our first VPS countries will be announced soon and EDI developments are aligned with the forthcoming WD30 release.
In short, upgrading to PECI now will provide a stable foundation for these innovative features that will streamline your global payroll experience in Workday.
I hope this helps you understand a little more about PICOF v PECI. There’s the old adage, “if it ain’t broken, why fix it?” and that certainly applies to anytime payroll is involved. But we encourage you to take a closer look at PECI and see if this new relationship could be the perfect fit for your organization.