Pfizer has been executing a global payroll integration strategy aimed at transforming its decentralized and inefficient payroll systems into a standardized and optimized global framework. This initiative, which began in 2013 and is expected to achieve target savings of $5.8 million, involves vendor consolidation, streamlined operations, and has so far integrated payroll systems in 66 out of 95 countries. Lessons learned from this transformation emphasize the importance of governance, local expertise, and the need for continuous improvement in operational excellence.

1. Mary Hull
Director, Global Payroll and Mobility Lead
Pfizer
Building a Global
Payroll Foundation

2. Facts & Figures
• Research based, global biopharmaceutical firm
• $49B in global sales
• Innovative Health and Essential Health
• 98,000 colleagues in 95 countries
• Brands: Prevnar, Eliquis, Lyrica, Viagra, Lipitor,
Chantix, Advil, Chapstick, Nexium

3. Global Payroll Integration Strategy
Over the past 4 years, our aggressive strategy of global payroll integration has focused on:
• Best in class payroll operations
• Vendor consolidation and optimization
• Process and system streamlining and standardization
• Company agility
• Cost reduction
• External compliance
• Reduced management burden

4. Where We Started
In 2012, Pfizer had a
decentralized, non-standardized,
not connected collection of payroll
systems and vendors
2012 Profile
countries different systems different vendors
95 64 44
On average, Pfizer payroll administration and time and attendance costs were over 35% higher than our peers

5. Where We Started
Concerns:
• Inferior existing systems
• Too many different vendors, systems, and
interfaces
• Fewer colleagues with intricate payroll
knowledge
• Diminishing HR BT support
• Finance to HR ownership in emerging markets
• Poor corporate agility in responding to M&A and
divesture decisions with significant
dependencies on payroll systems
!

6. First Focus: Global Payroll Transformation
• Initiated by move to global shared services model for HR support and upcoming Workday integration
• Business case prepared regionally and global payroll integration project initiated in 2013
• Realized complexity of global payroll project and cost savings that could be achieved
• Project completed in 2 phases, with final go-live planned for 2017

7. Where We Are Now
• Target savings of $5.8M and 35 FTE
headcount; currently overachieving the
target
• Strategic relationship established
with ADP
2016 Profile
of 95 countries
integrated
different systems different vendors
66 23 13

8. Global Payroll 2016
Summary
66 of 95 Countries Integrated
23 Systems
13 Vendors
In Scope
Deferred,
Cancelled or N/A
Implemented
US/PR (2)
Phase I: 2 Countries
Go-Live: January 2015
LATAM (13)
Phase II: 13 Countries
Go-Lives: 2015 – 2017 AfME (22)
Entire Region
Go-Lives: 2013 – 2014
APAC (8)
Phase I: 8 Countries
Go-Lives: 2014 – 2016
EUROPE (22)
Phase I: 16 Countries
Phase II: 6 Countries
Go-Lives: 2013 – 2016
Notable Deferred:
Russia Federation
DACH Cluster
BeNeLux Cluster
China
Mexico
Brazil
Spain / Portugal
Turkey
Canada

9. What We’ve Learned and What Has Changed
• Vendor consolidation, process streamlining and standardization was important for
Workday integrations and efficiency
• Transition to “business as usual” was challenging; markets took longer than anticipated to
stabilize
• “Payroll” often included other HR processes in the end-to-end definition
• “Add-ons” often changed the pricing assumed in the business plan

10. What We’ve Learned and What Has Changed
• The business model and conditions in some countries change over the course of the
implementation and should be re-evaluated
• Importance of global-level payroll governance, decision support and interface standards
• Need subject matter experts with local expertise
• Need dedicated project managers

11. 3 Year Strategic Focus
Operational
excellence
Build on the success of global payroll integration efforts and focus on:
Vendor
governance
Continued value
improvement and
cost reduction
Company agility Workday integration
and colleague
experience

12. Strategic Considerations and Influences
What HR and BT are asking for:
• Simplification & standardization
• Stronger vendor performance & accountability
• Increased value/lower cost
• Scalability and consistency in acquisition & divestiture
• Regulatory compliance
• “Delighted” colleagues
What the business is
asking for:
• Flexibility and agility
• Colleague engagement
• Increased value/lower cost
• Reporting and analytics
What colleagues are asking for:
• Easy access to useful information
• Mobile apps
• Accurate payroll
• Fewer touch points; more self-service

13. Global Payroll Strategy 2.0
Build on the foundation of an emerging best-in-class, integrated Global Payroll program through:
Continued Integration
Operations and Process Improvement
Harness Data and Analytics
Mergers and Acquisitions