Search
 
Alexander Hamilton Awards

Reducing Risk and Creating Value for the Company

The winner of the 2023 Bronze Alexander Hamilton Award in Risk Management is ... Paychex!

Paychex wins the 2023 Bronze Alexander Hamilton Award in Risk Management!

Many clients that subscribe to Paychex 401(k) services receive discounts early in the contract. Over time, the company recaptures this revenue by reducing the discounts year by year until eventually eliminating them. This gradual phaseout means discount decisions can get complex fast.

“In the interest of customer retention, we typically avoid removing the discounts all at once, which would result in a sizable price increase for the client,” explains Doug Baxter, director of financial operations for Paychex. However, the company’s billing software was not designed to accommodate this approach. “The system perpetuates the same discount for a particular client until an employee goes in and changes it. So, in the past, we had a manual process for figuring out how to adjust discounts.”

This process was cumbersome for everyone involved. Managers in the 401(k) business unit would set a high-level rolldown percentage. The service reporting team would use Microsoft Access to combine dozens of datasets and generate an initial list of discounts for specific clients, a process that involved more than 100 Access queries. Accounts receivable (A/R) specialists would then analyze each client relationship within multiple Excel spreadsheets to develop a discount for the client for the coming year, and would work with the customer service department to anticipate and mitigate potential issues related to the price change.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.

Already have an account?

NOT FOR REPRINT

© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Meg Waters

Meg Waters

Meg Waters is the editor in chief of Treasury & Risk. She is the former editor in chief of BPM Magazine and the former managing editor of Business Finance.

More from this author

 

Recommended Stories

Cyberinsurance Premiums up 50%

Cyberinsurance Premiums up 50%

Marnie Muñoz |

Increasing ransomware attacks have driven total premium revenue for insurers to triple in the past three years.

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2023 ALM Global, LLC. All Rights Reserved.