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TotalHR Makes a "Star" Out of MGM
Metro-Goldwyn-Mayer Inc. (MGM) has been a major force in the entertainment industry for 78 years. The product of a 1924 merger between Metro Pictures Corporation, Goldwyn Pictures and Louis B. Mayer Productions, the California-based company has produced some of the best-loved films in motion picture history. MGM is actively engaged in the global production, licensing and distribution of motion pictures, television programming, home video, interactive media, music and licensed merchandise, and boasts the largest modern film library in the world.
As a result of their distinguished history, the MGM payroll department generates enormous volumes of royalty payments – over 10,000 a cycle – to unions with a variety of rate structures, to actors, writers, directors and anyone else credited for a production. MGM also processes regular paychecks for its 1,050 employees.
Over the years, as the number of MGM productions grew, costs for outsourced payroll processing began to skyrocket. In 1992, the company made a bold move to bring their payroll operations in-house. MGM licensed Geac’s TotalHR solution to support their internal HR and payroll processing and have since recognized significant cost savings through operational efficiencies.
Bring It In House
Greg Diller, manager of financial systems at MGM, recalls the switch: “We were looking at reducing costs in running payroll, including W-2 generation. It was a bold move at the time, but a no-brainer to bring all of it in-house. Just the sheer volume led us to the decision. Since our decision to license TotalHR, we have been very happy with it and what it has helped us to achieve.
“TotalHR is a very stable product,” he continues. “Our users have been extremely happy with it – they have found it to be a very reliable, easy-to-use system. And we feel comfortable enough with the direction of the product, that it is going to be progressive and proactive in the area of new technology – particularly with the latest addition of self-service capabilities.”
Continuous Enhancement
TotalHR’s recent transformation from a file-based to a client/server-based system left MGM with the decision either to purchase additional hardware and training to support the upgrade, or migrate to a totally different solution. According to Diller, the decision to upgrade was logical for them.
“We have employee histories that we didn’t want to convert; we have invested knowledge and training in the system, and at the end of the day, we weren’t going to get more functionality by replacing TotalHR with a new system. TotalHR is a solid solution that works for us. It’s progressive and proactive, and any outlay we make for hardware and new technology to support Version 4.0 will only benefit us in the long run.”
Operational Excellence
Furthermore, Diller says, “You can never, ever have an IT problem with your payroll processing, and the number one thing is that you can never be late. We’ve never missed a payroll since being on TotalHR and as fundamental as that sounds, it’s a big deal for us because we strive for excellence in our entire operations.”
And Diller is the first to recognize that, more than just an operational toolset, TotalHR contributes to MGM’s overall business strategy. “Our ratio of overhead compared to our revenue is one of the lowest in the industry. TotalHR is part of that equation. Keeping cost-efficient is a huge competitive advantage for us,” he states.
About Metro-Goldwyn-Mayer
Metro-Goldwyn-Mayer has been a classic American icon in the entertainment industry for over 75 years, well known for its roaring lion trademark. Since its founding in 1924, the company has prided itself on creating and shaping cinematic history and delighting audiences worldwide. The cmpany has evolved to meet the specific demands of modern audiences and maintained its foothold in rapidly emerging technologies, setting the stage for success in a new century of entertainment.
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