Payroll is a standard pillar that all businesses need to get right in order to avoid inefficiency and increased costs. Despite this, many organisations are still working with outdated and ineffective payroll systems that eat into valuable HR time, and business profit. As part of our four-part New Years’ Resolution content series, which will run over the coming weeks, our first blog looks at how to avoid key payroll pitfalls and ensure better communication when it comes to the costs involved. So, if you’re a payroll or HR professional with a plan to streamline costs and processes in 2017 but don’t know where to begin, here are four key things to help you get the New Year off to a good start…
At one stage or another, it’s likely that those of us working in business will have been caught out by fine print and hidden costs. It’s a hard lesson, but one that we no doubt all learn from. When it comes to global payroll, and in particular, dealing with multiple providers across different geographic regions, companies are faced with complex challenges that make it difficult to accurately assess expected cost. It’s often the case that unexpected one-off – or even on-going charges – will arise through the need for software and/or hardware upgrades, general maintenance and administration, legislative updates, the list goes on. These hidden costs can be minimised, though – and not just that, international payroll can become a much less HR burden, too. By adopting one single international system of payroll record, additional costs can be cut significantly through economies of scale, improved efficiencies and the streamlining of processes.
Once you’ve got better clarity around payroll costs, your next step should involve taking control of these costs! More often than not, this will require reducing the number of multinational payroll providers on your books, or better still, switching to one international provider. The latter will ensure you only pay for the services you use, and will also standardise, streamline, and automate manual processes that take up lots of HR time and energy. There are, of course, some costs that you will be unable to control, but any unnecessary ones, including the use of additional resources, hardware, and software, can – and should – be reduced where possible. Cutting out these extra costs will have the added benefit of reducing complexity by eradicating non-essential administration.
The saying “you get what you pay for” does not always ring true, and in the context of payroll, extra expense does not mean you will get a better quality payroll solution. It’s the bigger picture that really counts, so put your global hat on and be strategic. What is the best option for your business? A common misconception amongst many payroll and HR leaders is the fear they will be missing out on local service quality if they make the move to one global service provider. Contrary to popular belief, this is not the case as modern global payroll solutions are developed with ‘global approach, local knowledge’ in mind, and in-country consultants form part of the development process to ensure local market accuracy within the wider global offering.
Once you have started to streamline your global payroll by shedding the multiple service providers that add to both your workload and stress levels, it’s important to start tracking your time and cost savings, not least because this is a great way to validate the investment in your new payroll strategy. And, while you may not see immediate cost savings due to upfront fees associated with implementation, communication and training, the long-term financial benefits will soon speak for themselves. Typically, businesses that switch to one single global payroll provider can expect to start seeing return on investment in the second year. Making Payroll work for your business: Click here to download our whitepaper for free.