Payroll and HR System Admin
AI Summary
The London Borough of Hounslow (LBH) is seeking a provider to deliver comprehensive payroll and pensions administration services. The scope of these services encompasses accurate and timely payroll processing for LBH employees, pensioners, companies' employees, and external clients such as schools.
The selected provider will be responsible for the correct administration of pension contributions, tax deductions, and other withholdings, ensuring compliance with all relevant regulations. The service should be tailored to meet the specific needs of each client group, while prioritizing accuracy, efficiency, and transparency.
LBH aims to achieve a minimum 10% reduction in contract costs through innovative solutions and process optimization. The successful provider will also be expected to implement automation wherever possible, enabling employee self-service options for accessing payroll information and managing personal details. Additionally, the provider should demonstrate expertise in data analytics and reporting, generating insightful reports on pension performance and identifying trends to further improve payroll accuracy.
Description
Payroll: the service includes payroll for Council officers, staff based in schools and other external clients, staff employed by council companies - LNH trading company, pensioners in the Hounslow Local Government Pension Scheme, payment of Councillors allowances and expenses and periodic elections payroll when required. Trading Company's payroll service is based on the same specification as the service received by the Council.
System administration for the HR system iTrent (provided by the current supplier) and the HRP/Schools portal
Vision:
Our vision for the Payroll Service:
To provide seamless, efficient and transparent payroll and pensions services for Hounslow employees and pensioners, its companies' employees and external clients (e.g., schools). The Payroll services will be fit for purpose for the specific requirements of these different clients. The service will ensure that payroll is accurate and on time, and that pension contributions for all pension providers, tax and other deductions are administrated correctly.
Our vision for System Administration Service:
To actively support system developments and upgrades to ensure that the system in use meets the needs of the organisation. We want to provide a responsive service that addresses issues with the HR system in a timely manner and provides data and reports when required, as well as offering support and training for the end users of the HR system. The service will support the organisation to deliver its People strategies and policies effectively.
Current performance
In 2024/25 payroll accuracy has consistently been over 99.90%
In 2024/25 there were a total of 180,001 payrolls, 90,678 were pensions
1,472 new queries about pensions were received in 2024/25
In 2024/25 there was £47k in overpayments on LBH payroll, 63.7% (£30k) of which was recovered to date
There were approximately £81k in overpayments on Trading Comapny's payroll in an 8-month period (August 2024 - March 2025)
There were 335 new starters were set up in iTrent and 275 leavers processed on iTrent in 2024/25
There is a 3 working day response time from the HR Systems Administration team
Current contract cost
Annual core contract cost
System admin: £303k
Payroll: £1.083m
Objectives
Lower contract cost by min 10%
Increase accuracy and minimise incorrect payments
Automate processes wherever possible
Ability for employees to self-serve wherever possible
Improve reporting on pensions and review what other data could be used to monitor the payroll performance
Provide HR system (optional)
Contract location: UKI75
Engagement process description
The Council intends to hold a series of online interviews with interested providers during August/September 2025.
It should be noted that this engagement is not a formal tendering process.
The information we gain through our market engagement will help to inform our commissioning intentions and refine our specification for this service.
Lot: 1
Languages in which tenders or requests to participate may be submitted: En