Performance Improvement in the Private Sector
Tesco, the UK’s largest retailer, with over 360,000 employees, embarked on a major transformation programme to implement a new cloud-based HR and payment system for its workforce. This has been a programme on a massive scale: one of the largest cloud-based HR and payroll implementations in the world. The numbers involved are striking: 260,000 colleagues are now live across all UK retail stores, office and Tesco Bank, with more to follow.
KPMG has supported Tesco on its People Programme since late 2017. Then, the programme was experiencing a troubled start and Tesco asked KPMG to review the programme and make recommendations. We proposed redesigned leadership and governance structures and were delighted that Tesco asked us to take leading roles across the restructured programme. We have since brought leadership, experience and expertise to work alongside and support them and, where required, advise, coach and develop them. It has been about putting key KPMG expertise into the right areas to support the Tesco teams – a truly collaborative effort.
Since then, the programme has been proceeding in highly successful stages, culminating in a series of rollouts in 2021 – despite Covid – to the entire UK retail store population. Over 260,000 colleagues are now benefitting from the system, with pay accuracy running at over 99.8%. There have been significant efficiency and cost savings for the business and now Tesco can focus on bringing the system to remaining parts of its business – living up to its core philosophy that it’s people who make their business.
The programme will evolve further with the introduction of new applications, which will create a simple ‘one stop shop’ for every digital touchpoint connected to the colleague experience, including Work, Skills, Comms, Reward and Benefits. It will enable colleagues to self-serve the management of their personal information and work schedules, access any training they require on demand, engage in two-way communication and more. It will support an engaged and agile workforce, with improved colleague digital confidence and support managers to ensure they have the right hours in the right place, with teams that have the breadth and depth of skills they need to deliver for their customers.
Tesco has an optimised system that brings colleagues a better working experience and self-serve ability, and that enables managers to manage their teams better. It also provides a foundation for further transformational change to meet Tesco’s vision of the future. KPMG looks forward to continuing to work alongside Tesco as this programme continues.
View the KPMG profile in the MCA Members Directory.