Internal Memorandum
Date: February 7, 2005
To: All Delta Employees
From: Beth Johnston, Vice President - Human Resources, Hank Halter, Vice President and Assistant Controller
Subject: Transformation of HR Support AND Payroll Services
Today, Delta begins a seven year partnership with Affiliated Computer Services (Affiliated) for delivery of a variety of HR support and payroll services. This new relationship with Affiliated is part of Delta's Transformation Plan to reduce costs and improve customer service. This agreement will result in a $40 million cost savings over the life of the contract.
At the heart of this partnership are a new technology platform and a team of HR and Payroll professionals who will take over much of the transactional and support work we do today. This partnership will save Delta roughly 27 percent of the costs to perform these services internally and will allow us to avoid tens of million of dollars in technology infrastructure upgrades and support. In the same way that Delta has transformed our customers' experience and reduced our costs through the use of improved technology, we are confident this partnership will be an enhanced experience at a lower cost for Delta people.
During the next 12-24 months, we will transition our HR and Payroll systems to a new Web-based environment. Through this system, you will have expanded access, 24 hours a day/7 days a week to much more of your personal information, providing greater availability of information critical to you and your family. Managers will gain access to new technology-based tools to handle their jobs more effectively and efficiently. Affiliated's Employee Contact Center will be located in Tempe, Ariz., with a dedicated business unit exclusively for Delta employees.
Beginning Feb. 16, a core group of Delta employees will begin a leave of absence from Delta and become full-time members of the Affiliated team. They will ensure that our service levels are sustained through the transition, and bring Delta expertise in understanding our programs, philosophy and systems. These employees will remain with Affiliated until the transition is stable in their particular area of expertise. This group will have access to job opportunities throughout the Affiliated and Delta systems as they complete their transitional assignments.
Throughout the transition, we'll keep you posted on details of the implementation timeline, including when the enhanced self-service functionality is available. Until then, you can continue to access HR services and Payroll records, as well as 1-800 MYDELTA, in the same manner that you did before.
As Jerry Grinstein states in his memo dated Jan. 18, 2005, "Looking forward, we know the road ahead is at least as long and rough as the distance we've come so far." We began this initiative more than 12 months ago, and after an exhaustive search we found the right partner with the right transition process. The step we're taking today is an important one toward our goal, but much of the heavy lifting begins now. We will continue to work diligently to seamlessly execute our plan in the coming weeks and months.
Transformation is happening everywhere at Delta, including Human Resources and Payroll.
As we position our teams to contribute to the long-term viability and growth of Delta, we thank you for your support.
Beth Johnston, Vice President - Human Resources, Hank Halter, Vice President and Assistant Controller