New Solutions for HR, Payroll Management
Apparel companies are finding more options when it comes to managing their payroll and human resources departments.
Two companies, Roseland, N.J.–based ADP Inc. and Rochester, N.Y.–based Paychex Inc., have dominated payroll services for years. But with emerging Internet technology, more competition is rising to the surface.
Among the current crop is Studio City, Calif.–based Innovative Personnel Solutions, which recently launched a new Webbased system that manages all aspects of human resources and payroll operations.
Former BCBGMaxAzria and JNCO executive Mikael Cohen, along with two other partners, launched IPS about nine months ago. Cohen aligned with Los Angeles technology firm Midrange Software Inc. to create a Webbased payroll and a human resources information system that requires minimal investment and is designed for a wide range of apparel and textile companies.
Cohen has already attracted labels Hale Bob, Sharagano and Spy, among others. He spent 20 years in the apparel industry as a chief financial officer and chief operating officer of BCBG Max Azria and held similar positions with JNCO and others firms. He believes the experience has given him an understanding of all aspects of apparel operations from manufacturing, wholesaling, retail and distribution.
The IPS concept is to offer a payroll solution that does not require large up-front costs. The company charges a flat monthly fee based on a client’s size and structure. There also are no required hardware investments or any major software implementations since most of the technology is on the Internet.
“The advantage with this system is its flexibility and the fact that you have total control,” Cohen said. “You can access it any time.”
The company offers hosted and outsourced plans based on client needs. Its range of modules include the main human resources information system, called PERMS, which offers a central database for all personnel information and allows managers to track job applications, salary data, benefit plans, time, attendance, centralized reporting, training tasks and integration to enterprise resource planning software.
Designated employees can even track their own hours, vacation time accrued and other data over the Internet, Cohen said.
The in-house payroll manager handles such basics as generating paychecks and automatic deductions. But the system also has built-in intelligence, which considers exceptions and controls involuntary deductions for multiple companies. It also calculates deductions regardless of schedules, exceptions, limits or frequencies and simplifies cost accounting, labor allocation and project tracking with reporting tools.
Other modules within the suite include XpertHire, a recruiting tool that streamlines applicant tracking and allows human resource managers to access and screen applicants by skill level or other criteria.
XacTime is a time-clock tool, which can eliminate time cards and other paperwork by using computers, smart badges or other tools to track hours in real time. Cohen said it’s ideal for retailers because it has triggers, which can be set to automatically notify supervisors and managers of things such as verbal warnings or bonuses for perfect attendance.
Many IPS tools can provide analytical reports and eliminate data entry, Cohen said. The purpose is to increase efficiency and improve the bottom line, he said.
IPS also addresses a number of the idiosyncrasies that are part of the nature of the apparel industry.
“The software has been well adapted to meet payroll and employee management requirements in the garment industry, including the use of the 125 cafeteria plan (a pretax benefit deduction program); management of health insurance with COBRA requirements; and reporting to OSHA [Occupational Safety and Health Administration] and EEOC [Equal Employment Opportunity Commission] with records of employees’ training and garnishments recording with direct payment to government agencies,” Cohen said.
For more information, visit www.ipspays.com. —Robert McAllister
