Don’t work harder, work smarter: Why 2017 will be the year of global payroll
2016 has been an eventful year, with lots of social and political change occurring around the world. Change, of course, can be a great thing – it can bring new perspective and a fresh outlook, something which also holds true in the context of business and HR.
In our previous blog, we discussed how payroll professionals working with multiple global systems are all-too-often blighted by added complexity, cost, inaccuracy and inefficiency. So how can businesses rid themselves of these undesirable payroll side-effects? The answer, of course, is a global payroll service solution. And with the New Year fast approaching, now is an opportune time to start planning.
We’ve all read about high profile payroll disasters in the media – the CEO who was still being paid a year after he left his company, the organisation that had to repay $400,000 in back wages for overtime that went unaccounted for – and the list goes on.
These are extreme examples, but they do highlight that blunders such as these can have a significant impact on a company’s bottom line. Consolidating and harmonising payroll by having one global solution which federates the systems of pay per countries can greatly reduce errors whilst promoting peace of mind and improving employee experiences.
Assess and address your payroll plans
The first step in the process is to identify whether your business would benefit from a global solution. If you answer ‘Yes’ to one or more of the below, you can be sure there are gains to be had from streamlining your payroll processes and opting for one single system of payroll record.
Do you struggle to capture and report on payroll costs globally?
Do you worry your auditing of financial controls is not robust enough across international markets?
Do you lack standardisation of payroll process?
Do you fear business risk from inaccuracy and inefficiency?
Do you use too many payroll suppliers?
Are you too reliant on manual processes?
More likely than not, the above poll just confirmed that you and your multinational business would benefit from implementing one global payroll system. That doesn’t mean that the journey to achieving this will be without its challenges, however. We know that business change can create apprehension and we’re mindful that the jump to a global payroll solution will present many unknowns, even to seasoned HR and payroll professionals. Above all, the key to reaching your intended global payroll destination is to keep long-term gains at the forefront of your mind, and on top of the C-suite agenda.
Gains to be had from going global
- A global payroll system acts as an umbrella across all your business functions and geographic regions. This increases visibility whilst reducing complexity – a win-win.
- Easy-to-use, near real-time reporting tools eradicate the need to collect and combine multiple payroll data sets from different systems and providers. It’s quicker and will save you from that monthly spreadsheet stress.
- There will be a reduction in the amount of training needed for local teams, leaving HR professionals with more time to focus on HR strategy and improving employee experiences.
- Reduced complexity will be seamlessly matched with increased compliance, reassuring HR departments that they will remain compliant with employment laws around the world, no matter how many countries a company operates in. All in-country laws are accounted for and adhered to in one global system.
The New Year presents a great time for change, to read more about how global payroll can get your New Year off to a more cost-effective and stress-free start, download our whitepaper.