R-kioski has switched to one-stop payroll services
A popular franchising chain, R-kioski calculates and handles wages for nearly 600 kiosks each month. The kiosks are franchisee-run small businesses employing 3–4 people each. This translates to more than 2,000 wage packets to be calculated each month. According to R-kioski’s HR Director Maria Sjöroos, building of the new centralised payroll and human resource management system was spurred by the sale of the company to Reitan Group in 2012.
‘Before that, around 40% of the kiosks were run by franchise-owners, who handled the payroll calculations independently. Payroll management for the other kiosks had been outsourced to a collaboration partner. Under the new owner, the goal was to change all the kiosks into franchises and transfer the payroll and human resource management tasks to the company’s support organisation to run, in accordance with the new franchising agreement,’ explains Sjöroos.
Mepco HRM as a starting point for new recruitment in administration
The most suitable system had already been selected with the company’s partner in payroll calculation: ’Mepco HRM comes with good tools for both the payroll managers and R-kioski’s 100-strong support team,’ explains Sjöroos. Centralised payroll management was the goal from the word ‘go’, and that goal was easy to reach because the company could continue working with the same Mepco system.
The centralised model was piloted with the assistance of the payroll calculation partner. By autumn 2013, with positive experiences having accumulated from 50 kiosks, R-kioski decided to switch to the centralised payroll management model. To run the system, the company needed to hire new staff for its payroll management team.
In spring 2014, R-kioski found an experienced Mepco HRM expert to head that team, enabling a rapid switch to the new system. Without in-house system expertise, the company would have needed more assistance from Mepco’s consultants.
‘Having expertise in both the system and the business sector is crucial, as the system is only as good as the person using it,’ says Sjöroos.
‘Besides the team leader, R-kioski’s payroll management team now includes nine payroll clerks who can devote their full working time to R-kiosk franchise-owners since they don’t have other clients. We were happy with our previous partner, but having in-house payroll staff means that the operations are now even closer to the franchise-owners,’ says Sjöroos in praise of the team.
R-kioski’s Mepco HRM agreement is transaction-based. This means that no licence fee is charged; instead, invoicing is based on use – for example, the number of workers whose wages are calculated. This way, the service adapts to actual use.
Centralisation for greater efficiency and flexibility
Not only is the centralised payroll management system more cost-efficient, but it also enables franchise-owners to obtain services more rapidly. The next step is to implement an HR management system for R-kioski’s support organisation. ‘I’m sure it’ll save both paper and time,’ Sjöroos says of the benefits from streamlining paperwork.
Sjöroos praises Mepco’s system for its flexibility: functions can be added when necessary. With a decade of experience of working with Mepco, Sjöroos appreciates the company’s active and customer-oriented software development. ‘Also, the training arranged by Mepco for its clients is a real bonus,’ she says.
‘For any franchising company looking to centralise its payroll management, I can warmly recommend Mepco HRM. Of course, the program also lends itself to the needs of large corporations and accounting firms, which need to calculate the wages for several companies,’ says Sjöroos.
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