Baker Hughes: Outsourcing payroll to create added value in HR
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Industry:
Oil and gas
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Employees:
64,000
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Headquarters:
Houston, 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 decided to globally transform its HR department.
In addition to improving payroll accuracy and increasing HR efficiency, Baker Hughes also needed to comply with legal and regulatory requirements. But perhaps more importantly, reduce HR operational costs.
To achieve these objectives, Baker Hughes decided to adopt a new global HR information system. This harmonized and consolidated their global HR processes.
In addition, their payroll was outsourced 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.
Challenges and objectives
In 2007, Baker Hughes decided to look for a long-term partner to support the objectives of their HR transformation program:
- Focus on value added activities to help the business develop and grow
- Readily comply with legal and regulatory requirements
- Be able 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. This whilst 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.
About Baker Hughes
Baker Hughes Incorporated is a global oilfield services company delivering focused efforts on shale gas and other oilfield services. They are bases in Houston, Texas in the USA with nearly 40,000 employees in over 90 countries.
“The solutions and services provided by NGA Human Resources really supported us in achieving our HR objectives, improving HR efficiency and creating added value to the business. By outsourcing our payroll activities to NGA, we reduced operational costs while significantly improving payroll accuracy.”
EH Global Business Services Director, Baker Hughes
- Global payroll outsourcing services, whereby NGA manages all operational aspects of the payroll process for Baker Hughes’ over 11,500 employees in Europe and Latin America. Most countries are directly serviced on the euHReka platform; 4 countries benefit from the payroll services of one of NGA’s local 3rd party payroll providers through our ‘NGA global Payroll’ concept.
The use of euHReka as their global HR technology responds to Baker Hughes’ need to have a global HR system to manage its employees. In addition, outsourcing payroll processing gives Baker Hughes the opportunity to focus on value-added HR activities. As such, this integrated HR solution allows them to drive down time-to-benefit and cost, increase standardization and quality and improve HR management. Through all steps of this journey, NGA acts a true partner and accompanies Baker Hughes in the transformation of their HR department towards a more efficient and competitive model.
Results and Benefits
As a result, Baker Hughes can now benefit from fully integrated, standardized and harmonized HR data and processes across the globe. The decision to outsource payroll to NGA led to a more flexible and configurable payroll solution, as well as to a more harmonized and simplified in-country payroll management.
The setup of standard processes, a single HR technology based on euHReka and global payroll outsourcing services, provided Baker Hughes with the following business benefits:
- Ability to focus on internal processes without having to spend all efforts on managing the payroll process
- Decrease of the number of issues related to the calculation and compliance of local payroll
- Alignment of all entities within a country and standardization of local and global HR processes
- Important increase in payroll accuracy thanks to a better management of fluctuations in employee numbers
- Increased standardization and compatibility of HR processes globally, which will ease further expansion
- Significant cost reductions thanks to the removal of bespoke incountry HR systems which required a lot of resources
Why euHReka
euHReka was chosen based on the following criteria:
- Innovative HR solution covering all geographies and processes in scope
- Based on solid SAP HCM technology
- Ability to support and integrate multiple HR processes within a same solution
- HR and payroll outsourcing services can be provided on this platform by a single HR partner
- Global fit-to-standard approach and proven project management methodology
- Flexibility of the solution to meet current as well as future HR needs
Why NGA Human Resources
Baker Hughes selected NGA as their long-term HR partner thanks to our proven capability to meet all of their requirements. Our comprehensive solution combining the setup of standard processes, an innovative HR technology, a proven project management methodology and global payroll outsourcing services, was selected as the best response to Baker Hughes HR challenges. Throughout the project, NGA was perceived as a true partner focusing on mutual trust and collaboration at all levels. NGA’s flexible HR solution now enables Baker Hughes’ HR department to support the business, and can at easily be adapted to future requirements as well.
