D+H Mechatronic

Even before implementing Personio, D+H Mechatronic had already established digital HR processes. Payroll and the SAP HR module were outsourced. Recruiting was managed through a separate SaaS solution, while digital employee records were stored in a standalone document management system. Each system worked well on its own, but they were not intelligently connected.

One example was salary increases. Information first had to be sent to the external payroll provider by email in a specific format. The HR team then had to wait, check that everything had been processed correctly and continue tracking the request internally.

This created a unique challenge for the HR team. While responsibility for accurate payroll remained in-house, much of the process itself was handled externally. At the same time, expectations from both management and employees continued to grow. They wanted better reporting, more self-service options, simpler time tracking and a better experience for employees working in the field.

The existing setup also generated ongoing costs and administrative effort. New requirements often meant additional customisation, consultancy days or extra integrations. D+H Mechatronic therefore needed a solution that would do more than simply run payroll. It had to make HR processes easier to manage, more transparent and easier to control.

The biggest challenges

• High levels of manual coordination despite digital processes

  Many steps were digital, but not automated or integrated. Emails, follow-up questions and manual checks were part of the daily routine.

• Separate systems for core HR and payroll processes

  Recruiting, digital employee records, payroll and other HR processes were spread across different systems. This limited transparency and automation.

• Limited flexibility for employees and management

  Reporting, system changes and additional functionality often required customisation, consultancy support or extra integrations.

• Heavy reliance on external processes

  Payroll was outsourced, but responsibility for accurate payroll data remained with the HR team. Changes had to be initiated externally and tracked internally.

D+H Mechatronic knew that a new system had to do more than offer additional functionality. It also had to fit the HR team's day-to-day work. Together, the team defined its key requirements: better usability, greater independence, improved reporting, digital time tracking, self-service options for employees and managers, and a cloud-based solution with a clear cost structure.

With Personio Payroll, D+H Mechatronic found a solution that brings HR processes and payroll together in one system. One of the biggest advantages was having a single source of truth for employee data, allowing changes to flow directly into payroll processes.

The move also marked an important milestone. Payroll, which had previously been outsourced, was brought back in-house. The migration from SAP to Personio took around six months in total, including preparation and follow-up. The intensive implementation phase itself lasted around four months. Payroll was the team's top priority throughout the project. The goal was to complete the first test payroll run as quickly as possible, validate special cases and build confidence within the team.

The approach paid off. The first payroll run in the new system was completed without errors. At the same time, the process became much easier to manage. The HR team can now implement changes such as on-call allowances, retroactive salary adjustments and working time schedule updates at short notice.

Because payroll had previously been outsourced, D+H Mechatronic does not save significant time on payroll processing itself. The real benefit is that managing payroll in-house takes no longer than the previous outsourced model while providing much greater control and additional advantages in areas such as employee data management, working time schedules, salary data and payroll preparation.

The team also takes a realistic view. Some tasks, such as certain overtime payments, are now handled manually even though they were previously automated. Even so, the overall benefits clearly outweigh the additional effort. HR and payroll now work much more closely together, and the team has full control over operational processes.

The benefits also extend beyond payroll. Today, the HR team works with connected end-to-end processes. The biggest advantage is the seamless workflow, from preparing an offer and generating a digital contract to maintaining employee records and onboarding.

With Personio, D+H Mechatronic has built a strong foundation for bringing HR and payroll even closer together. Instead of moving information between different systems and coordinating with external providers, the HR team now works in one integrated solution.

This means fewer coordination steps, faster response times and a more reliable data foundation for both HR and payroll. The team can respond more quickly, manage processes directly and better meet the needs of both management and employees. The biggest benefits can already be seen in employee data management, payroll preparation and the seamless process from job offer to onboarding.

D+H Mechatronic expects to be able to measure the full efficiency gains towards the end of the year. Even now, however, one thing is clear. The company has successfully brought payroll back in-house without compromising payroll quality. At the same time, it has gained greater control, improved transparency and higher efficiency at slightly lower cost.

D+H Mechatronic demonstrates how a mid-sized company can successfully bring payroll back into its own HR team. Before Personio, the company had digital processes, but they were highly fragmented. SAP, outsourced payroll, a separate applicant tracking system and standalone digital employee records made end-to-end process management difficult.

With Personio Payroll, D+H Mechatronic has brought HR and payroll together in one central system. The overall transition took around six months, with the intensive implementation phase lasting approximately four months. Today, the HR team manages payroll for around 430 employees in Germany across eight locations, including additional group companies. The biggest benefit is not significant time savings in payroll processing itself, but greater control, better employee data management, more flexible payroll preparation and consistently high quality despite bringing payroll back in-house.