£1m East Midlands payroll and HR contract

Amy Harhoff, the new chief executive of the East Midlands Combined County Authority. Image from the East Midlands Combined County Authority.

Moving payroll and HR services from one council to an authority covering Derbyshire and Nottinghamshire is to cost more than £1 million.

Amy Harhoff, chief executive of the East Midlands Combined County Authority, has signed off on a decision to spend £1.2 million on HR and payroll technology for the organisation.

To date, Nottinghamshire County Council has been carrying out these duties for the umbrella authority but this is now set to change.

This decision comes as all 19 Nottinghamshire and Derbyshire councils are set to be scrapped and replaced with just five authorities from April 1st, 2028.

The move “in-house” from Nottinghamshire, as well as licensing and software agreements, will see taxpayers across the two counties and cities paying £1.2 million.

In the decision notice, the combined authority states £537,000 will be spent this year, followed by £569,000 in 2027 and £94,000 in 2028.

This was a delegated decision not made by elected representatives from the four member councils (Derby, Derbyshire, Nottingham and Nottinghamshire), in line with the constitution, the organisation wrote.

The move has been badged as a need to remain self-reliant for services, streamline and improve data quality.

Claire Ward, East Midlands Mayor, is said to have been briefed on the move last week and was “supportive of the decision”, which was formally signed off on Thursday, August 20th.

The issue can be called in for further scrutiny up until 4pm on Thursday, August 27th.

A key decision notice details: “The implementation of TechnologyOne HR and payroll will support the development of EMCCA’s independent HR and payroll capability and replace the current interim HR system and external payroll arrangements. 

“The new system will introduce changes to HR and payroll processes, including increased employee and manager self-service.

“The transition of payroll from Nottinghamshire County Council to an internally managed EMCCA service will also require clear ownership, appropriate capability and robust transition arrangements to ensure continuity and accuracy of payroll services. 

“Without this change, EMCCA would continue to rely on temporary and externally supported arrangements for key workforce and payroll processes. 

“This would limit the organisation’s ability to control its own HR and payroll data, improve process efficiency, and develop integrated reporting across HR, payroll and finance. 

“The implementation provides an opportunity to improve the quality and consistency of workforce data, establishment control, management information and workforce planning, supporting the authority’s continued organisational growth.”