We have all used or know someone who has used PayPal. They help users to make safe and secure payments over the internet. They’re a big deal, with over 22,500 employees spread over 31 countries. These employees serve over 300 million active users, who are moving money in 100 countries and over 200 markets all around the world.
Many people around the globe rely on PayPal. But, back in 2017, PayPal was struggling to offer their staff the same standard of service that they did their customers. Ironically, for a company that specializes in moving money from one place to another quickly, safely, and efficiently, PayPal was experiencing huge consistency and security issues with their payroll systems.
“We were in a bad place”, Traci Memmott, Global Payroll Lead at PayPal tells us. “We’re a Fintech company that promises our clients accurate and efficient payments. How could we not be offering that to our own staff?”
Traci joined PayPal in January 2017, and it quickly became apparent to her that the whole system needed a huge overhaul. Most of all, the HR system needed global consistency.
And so, ADP began working with PayPal to straighten out their complicated and (in Traci’s own words) “messy” system.
The situation in 2017 was desperate. “At that time”, Traci tells us, “we had 16 different providers. They were all on different platforms, they all had different contracts, it really was a mess. We had a lot of compliance issues, we had late payments, we had incorrect data coming from our HR systems. We had service issues. Our payroll specialists were handling all of our case volumes and they weren’t keeping up. Response times from our vendors were really dismal. The quality of data from our HCM system wasn’t reliable... the list goes on.”
And then there was the data security problem. “We had a large number of data security controls which were being inconsistently applied.” That kind of issue incurs fines — for which global company directors would be personally liable.
ADP and PayPal began working on a plan that would bring PayPal’s inconsistent HR into line as quickly as possible while remaining fully compliant with both data regulations and PayPal’s own best-practice protocols.
By January 2018, they began to disseminate the new system throughout PayPal’s European operations. Considering the scale of the previous problems, this was a quick turnaround. Traci credits strongly defined roles and a great relationship with their ADP project manager for the speed and efficiency with which this complicated work was completed.
Over the course of 18 months, ADP was phased in to replace multiple vendors as PayPal’s global payroll partner. “We redesigned our entire payroll organization so that we could increase spans, optimize work assignments and increase our key controls”, Traci says.
Traci believes that great working relationships have been key to PayPal’s success with ADP.
And what were the results? Traci thinks that they speak for themselves: “Now, we are in a really good place. 99.9% of our employees are now paid on ADP, and our payroll problems are at an all-time low.”
Switching to ADP has squashed those data security issues, too. PayPal is now at least 90% compliant with all the requirements across their countries. The ADP platforms have eliminated information security risks in Asia‐Pacific. “And as far as I know”, Traci adds, “we’ve finally stopped those nasty delinquency letters going out to business leaders in Europe”.
“When I joined”, Traci says, “our general ledger was a mess. Actually, this time last year my colleagues and I were wondering how on earth we were ever going to sort through this thing. It seemed impossible! But now we have clean general ledgers, stable general ledger files, and everything seems to be on track.”
Perhaps best of all, PayPal’s employees are much happier. “Our recent employee survey saw significant improvement in engagement and in the work/life balance of our payroll staff. Thanks to ADP, we can feel proud that we are supporting the financial health of PayPal employees with accurate and on-time pay.”