Payroll Services

Baker Hughes: Outsourcing payroll to create added value in HR

  • Industry: Oil & gas
  • Employees: 64,000
  • Headquarters: Houston, TX, USA

Managing large fluctuations of employee numbers across multiple geographies and entities while ensuring a correct and timely payroll processing, is not an easy task for HR departments. In order to tackle this challenge and to increase HR service delivery efficiency, Baker Hughes, a global oilfield services company active in more than 90 countries across the globe, decided to globally transform its HR department.

In addition to improving payroll accuracy and increasing HR efficiency, Baker Hughes also wanted to comply with legal and regulatory requirements and, most importantly, reduce HR operational costs.

To achieve these objectives, Baker Hughes decided to adopt a new global HR information system, to harmonize and consolidate their global HR processes, and to outsource their payroll in 14 countries, managing over 11,500 employees. As a result, HR can now focus on delivering added-value services to support the business and the future growth of the company.

About Baker Hughes
Baker Hughes Incorporated is a global oilfield services company delivering focused efforts on shale gas and other oilfield services.

Headquarters: Houston, TX, United States
Formed in: 1987
Industry: Energy
2012 net sales: $ 12 billion
Population: 39,800 employees
Presence: 90+ countries

Challenges and Objectives
In 2007, Baker Hughes decided to look for a long-term HR partner to support them in achieving the following objectives of their HR transformation program:

  • Ability to focus on value added activities to help the business develop and grow
  • Ability to readily comply with legal and regulatory requirements
  • Ability to meet expansion and contraction of the employee base and ensure payroll accuracy
  • Consolidate and outsource HR administration and payroll activities in order to increase efficiencies
  • Cost reduction

Overall, Baker Hughes’ main HR objective was to increase HR service delivery efficiency while reducing HR costs and operational efforts. Therefore, they wanted to collaborate with a single partner which could support them from an HRIS and HR services perspective on a global basis.

NGA’s Solution
Based on Baker Hughes’ HR challenges and requirements, NGA Human Resources proposed the following solution:

  • The implementation of NGA’s own SaaS HR IT platform – euHReka – supporting the HR administrative and payroll related processes in 14 countries across the globe.