Outsourcing the payroll frees up valuable time for University of Portsmouth Students Union

Delicate balancing act

Portsmouth Uni Part charity and part commercial enterprise, the University of Portsmouth Students Union is involved in a delicate balancing act that needs to marry responsibility for the welfare of 20,000 young people with a requirement to generate the revenue needed to fund the wealth of services and facilities it prides itself on delivering.

While entertainment is high on the agenda, "it is not all beer and partying," says Human Resources Executive, Rena Ellis. There are more than 100 sports clubs and societies, a job shop, an award-winning magazine, a radio station, website, advice centre, and a general shop along with home-cooked food served up at rock-bottom prices.

Safety is a key issue

At night safety buses whisk students home, while first-timers and their parents receive invaluable city know-how at special "secure home" weekends. "Leaving home for university is a major step, so it's reassuring for both generations to know we're looking out for them" she says.

Students are also encouraged to take part in the wide range of volunteer projects organised by the Union's Community Action Service in association with the City Council.

Important student employer

With six elected officers - graduates, or students on a year's sabbatical - working alongside the Chief Executive and his management team, "the Union is run by students for students" stresses Rena. "It is also an important employer of student labour mainly thanks to our ability to accommodate their academic requirements alongside their availability for work".

Complicated payroll

In the region of 300 students are on the payroll at any one time, with a full-time management team of 50 providing support and guidance. While flexibility is a key attraction for students, it makes for a payroll that Rena describes as "quirky" and "very complicated" with students "going on and off the payroll several times a year".

From a commercial background, she was, therefore, less than enthusiastic to discover on joining the Union in 1999 that payroll was an in-house responsibility, with only a standard package in place to cope with its many anomalies.

"It seemed like going back in time," she said. "It was very, very time consuming. Legislation changes so quickly and there are all sorts of other factors to take into account, such as student loans, tax credits and stakeholder pensions".

And with a year end that runs from August-July 31, a pension year that starts in October, the normal tax year plus three academic terms to cope with "It was all too much to manage in-house".

Outsourcing: the way forward

As a result, the Union opted to outsource the payroll, awarding the contract to Southampton-based Business Information Management (BIM). "While we looked at four providers, we felt that BIM was the best prepared to accommodate the idiosyncrasies of our payroll" said Rena Ellis. "It was reassuring to know they could support us on what seemed like a nightmare".

With a reputation for personal service, BIM provides a dedicated payroll manager for every client. "They get to know your payroll, pick up abnormalities, check it out with you and also remind you about things" said Rena. "That's very valuable, particularly where the Inland Revenue is concerned. Not only that, they talk to you in layman's terms, so you're not bogged down in technicalities".

New state of the art facilities

In late summer, the Portsmouth University Students Union will open the doors to its world leading new Student Centre. Incorporating cutting edge lighting, heating and air control systems, this £6.7 m facility is the first purpose-built union in the country.

A state of the art club for 1100 people - the second largest venue in Portsmouth - chill out and sports bars, along with a family area, an alcohol-free coffee bistro and an international themed bar are all included in the ambitious masterplan.

Cost control vital

But while trading will increase from 33 weeks to 52 weeks a year as the Union's marketing plan kicks in, the 30 year commercial lease on the premises nevertheless presents a "huge challenge". Cost control is vital, and with payroll one of the highest overheads, the detailed management reports provided by BIM are essential to maintaining the tight financial control required by any commercial undertaking.

Time saving 'phenomenal'

"Outsourcing to BIM has also cut the time element," said Rena. "Instead of occupying one person for 35 hours per week, we now average just 12 hours on payroll. The savings have been phenomenal".

"The BIM team really know what they are doing . It means we can all sleep easier, knowing they are looking after our interests. The students are very happy and I no longer feel isolated".

Commented Chief Executive, Jason Dunlop:

"This was definitely the most cost efficient way forward. The cost savings we have made mean we can invest in our core aims, which is what we are paid to do".

For more information visit Portsmouth Student Union.

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