Is your business prepared for 2022?
Global Payroll: Organization Health Check
Is your payroll ready for 2023?
| Global Payroll: Organization Health Check
Table ofContents
Introduction 01
Page3
A new dawn for global payroll operations
02
Page4
2023 priorities: what you need
03
Page6
Your 2023 Global Payroll Checklist
04
Page8
Meet all challenges with Payslip
05
Page 12
| Global Payroll: Organization Health Check
2
1. Introduction
As a new global payroll year begins in 2023, multinational companies everywhere are reflecting on some of the many changes that have occurred across the global payroll landscape in recent years. A global pandemic impacted businesses and world economic activity in an even more dramatic way than the financial crash of 2008. The world went indoors and business critical services like global payroll were delivered remotely for up to two years. After this, it was clear that we were never going back to the way we did it before, so it is still delivered remotely at many organizations today. Hiring and recruitment practices have also changed dramatically as a result of the global pandemic-the focus is now on the work from anywhere concept and workforce. Remote working and hybrid working has become the new normal. Location is no longer a factor when hiring top talent, many of whom are onboarded remotely and will work remotely on a permanent basis. This has resulted in significant diversity in workforce types within multinational companies today: permanent employees, contractors, expats and employer of record workers has become a normal mix. Needless to say, this introduces a whole new level of complexity for global payroll management and delivery. In this paper, we will reflect on a much-changed landscape for global payroll operations and processing. We will look at the options available for payroll delivery and management and examine some popular approaches we are seeing in the market. We will also provide you with an important checklist that enables you to test and gauge the ability of your global payroll department to meet many of the challenges facing global payroll today.
| Global Payroll: Organization Health Check
5 3
2. A new era for global payroll delivery & management
Global payroll delivery and management was complicated before the pandemic came along-now there are new variables to deal with while a lot of the pre-pandemic complexity still requires a solution. We are entering into a new era for global payroll operations as multinational companies around the world look to create a strategy that solves a range of different payroll related challenges while also enabling them to apply a global management framework around all of their payroll countries. Visibility and control are key factors for global payroll managers-what we are talking about here is an ability to see and control what is happening in each country and also manage them all on a global level. Let’s begin by reviewing some of the key challenges faced by multinational companies when delivering and managing multicountry global payroll. Lack of standardization with data and process-many payroll countries but different data and process for each of them-too hard to manage and not sustainable. Manual processes, time consuming data entry and an over reliance on excel spreadsheets and e-mail
Payroll errors, accuracy issues or local country provider performance issues
Inability to source, vet and quickly on-board new local country providers
Struggle to see and meet all compliance and regulatory obligations
Data security, information protection and cybersecurity concerns around payroll data
Managing countries in silos-no global framework in place
Limited, poor quality or insufficient global payroll reporting
Failed implementations-vendor technology or process could not be implemented or took years. Aggregator services model not living up to expectations-inability to cover all payroll countries
| Global Payroll: Organization Health Check
5 4
Frustrated and constantly pressurized global payroll professionals
Lack of digital, cloud-based tools for payroll operations
As you can see from the above, it is not an easy landscape to navigate. But there are payrolls solutions out there and strategy approaches you can take to make things a lot easier. One starting point is to stop looking for a silver bullet solution-this myth has been around for a while, but it has been firmly debunked and now all the analysts are in agreement that there is no single services provider out there who can cover all of your payroll countries and solve all of your challenges. What this means is that you are looking at a hybrid solution: a mixture of the service providers that you need along with whatever number of local country payroll providers are needed to meet requirements. Crucially, you then need a global management framework that enables you to manage this hybrid mix in an effective way. This is the correct approach as it allows you to deliver payroll for all of your countries in an individual way while having a management structure in place to manage them all on a global level. This will result in the kind of visibility and control you need for global payroll in 2023.
| Global Payroll: Organization Health Check
5
3. 2023 Priorities: What you need
So, global organizations need to outline their payroll delivery and management priorities-these priorities will point to the global management strategy that best suits their multicountry payroll needs. Determine how many service models and how many local country payroll providers are needed to deliver payroll for all of your countries Create a global management framework that covers people, process and technology and enables you to manage your service providers and local country vendors
This is really about putting a process in place that enables you to manage the entire payroll process end to end via a central standardized management model. Global employers need to consider changing the global payroll model they currently use. Now is a good time to decide if the model in use is the correct fit for the remainder of this decade. Outsourcing payroll or choosing an aggregator services model are popular options among many employers- but these models lack the level of flexibility and innovative technology required to manage a complex multivendor payroll landscape that is subject to change. Evidence suggests that these traditional models are no longer best positioned to meet the employer needs or adapt to a new technology driven normal. These models lack standardization and automation, offer limited reporting, restrict employers to specific local payroll providers, fail to cover all payroll countries and do not result in centralized management for the level of visibility, control and payroll harmony needed by global payroll managers.
“Long -term success in the payroll services space will require a modern platform-based offering (tech and services), with a flexible delivery model that can meet the needs of the changing business environment.”
Liz Rennie HR Technology and Services Research Director
| Global Payroll: Organization Health Check
5 6
We are seeing that the current trend is moving away from these traditional models as employers seek a new model that solves current problems while also applying a global payroll management framework covering all countries. A model that:
Standardizes payroll data and processes across countries
Organizes, stores and safeguards confidential payroll data
Automates workflows to reduce manual error and human risk
Enables cost savings and productivity gains
Delivers consolidated global reporting for bigger picture insights
Introduces execution excellence into global payroll operations
Enables compliance & data security governance and controls
Builds global payroll process operational control and flexibility
Is flexible enough to accommodate local country requirements
This model also needs to unify connected parties including payroll, HR, and Finance to create a cohesive global eco-system.
The future of global payroll is a global payroll control platform capable of delivering all of the above. A platform that can integrate seamlessly with existing technology frameworks, manage global payroll complexity while meeting the new demands being placed on payroll professionals as a result of the pandemic. Global payroll innovation has often fallen behind due to lack of leadership and executive sponsorship. The pandemic served to highlight the essential nature of global payroll delivery. Management level executive support is now more visible, and there is more fast tracking of global payroll digital transformation projects at many global employers.
| Global Payroll: Organization Health Check
5 7
Progressive, forward-thinking companies pride themselves on being ahead of the curve and many are embracing the future of global payroll by moving to a technology platform. Those who do not move with the times will find themselves stuck with an inflexible payroll model featuring legacy processes that are not capable of adequately meeting existing demands and are not at all equipped to deliver in a post-pandemic environment. The time to act is now.
4. Your 2023 Global Payroll Checklist
2023 is likely to be a pivotal year in the global payroll industry as more and more multinational companies look to adopt a global payroll model that features technology innovation as part of an integrated platform that connects global payroll with HCM systems and local country payroll providers. This is the approach that is best equipped to deliver the level of operational oversight they need over all of their employee types in all of their payroll countries. In preparation, it is prudent to look at a checklist and ensure your global payroll department is fully prepared. We have created this checklist below to help you gauge the suitability of your current resources, technology and global payroll model. This checklist can be a useful guide when putting together a plan for the kind of people, technology and platforms you will need for execution excellence in the delivery of multi-country global payroll in 2023 and beyond.
| Global Payroll: Organization Health Check
5 8
Checklist :
C h
We are clear on the number of service providers and local country vendors we need We can change, remove or easily onboard new payroll providers when we need to We operate with standardized payroll data and processes across locations – a single way of working across all countries We are replacing manual processes with fast and accurate automation technology
C h C h C h C h C h C h C h C h C h C h C h
Our process enables centralized management, full visibility and control
Our payroll process is integrated with HCM/Finance/Benefits systems- we have bi-directional data flows throughout our payroll ecosystem Our payroll is digitized: Dashboards, calendars, system alerts, digital tools.
We have access to global consolidated reporting and analytics
Digital audit trails exist for task tracking and compliance confirmation
We offer employees self-serve access to their personal and payroll data
Our model enables process scale up control and flexibility to support future business growth Local country requirements and pay elements are accommodated within a globally standardized framework Our payroll data is stored, managed and accessed in a secure cloud environment
C h
| Global Payroll: Organization Health Check
5 10
Technology, Process and People
If you can develop a single platform approach with your technology, this is the foundation for innovation and flexibility when it comes to process. Both global payroll professionals and your network of local payroll providers can leverage technology to establish a single way of working across your countries under a centralized global management framework that lets you see and control what is happening. Purpose built payroll management technology coupled with standardized data and practices can result in the one thing that is really needed in 2023 – complete visibility. You want the technology to do the heavy lifting and scale the process instead of the man hours. This helps to create valuable additional time in the monthly payroll cycle for busy payroll professionals to focus on priorities Global payroll transformation has become a critical priority as many are now seeking to futureproof payroll operations by consolidating payroll to a single global platform and vendor governance model. Next Generation Payroll Services, NelsonHall HR Services
| Global Payroll: Organization Health Check
5 11
5. Meet all challenges with Payslip
Payslip is a global payroll control platform helping multinational companies around the world achieve global payroll harmony and digital transformation. Payslip technology integrates with HCM & Accounting/ERP systems: automating payroll processes, standardizing payroll data and consolidating payroll reporting. Our platform helps companies to centrally manage their global payroll operations and achieve full visibility& control over people, processes and vendors across all their payroll countries. Our approach with global clients is to immediately standardize data and practices across all of the international payroll countries so that they can implement a global framework of standardized payroll practices and a single way of working across countries. We work fast and our clients are pleased to discover that as soon as a standardization framework is established in one individual payroll country, then a similar process can be rolled out to the other countries in a matter of days. Payslip is perfectly positioned to help multinational companies bring all of their data, people, processes, service providers and vendors into a single location (our global payroll control platform) for full operational oversight and management at a global level. Everything is tracked within the platform, so global companies have full visibility over the operational flow in a standardized way. This is managing whatever hybrid model that works best via a technology platform.
| Global Payroll: Organization Health Check
5 12
“Payslip positions your team for success and allows you to onboard hundreds of people when you need them very quickly and efficiently, in the same way for each country. The uniformed approach empowered our payroll teams to keep pace with our business.
Travis Saville HR Systems Lead
Now is the time to move to our global payroll control platform which is fully integrated to ensure that all data inputs from your HCM system, finance software and payroll providers flow in an automated and standardized format into a single, manageable platform. Our platform is deployed in a cloud environment where confidential payroll data is stored, managed and shared in line with information and data security best practices. The platform automates all workflows so that multi country payroll input, checking and validation operates on a fully automated basis. There are digital workflow calendars and system alerts across all your global countries for a clear line of sight on all tasks as well as significant compliance dates in each country. Your reporting will be global, consolidated and accessible by all authorized team members in a self-serve capacity. We recommend regular scheduling of country cost comparison reports for useful analytics and trending information.
| Global Payroll: Organization Health Check
5 13
“With Payslip global reporting you can straight away look at any country and you see the data in the exact same format and the same layout. It's just much easier for everyone to review and analyze at that stage.”
David Nugent Senior Manager, International Payroll
Your employee base is empowered with self-serve access to their personal and payroll information on the device of their choosing. This employee experience will be the same across all of your payroll countries. This is one platform for everything: all countries and workforce types, vendors and service providers-this way all of the data from all of these sources is consolidated in a single location where it can be extracted for reporting purposes. The platform offers you full choice and control over local country vendors-and allows you to swap out and change them whenever you need to. Above all, the platform ensures you have a global framework across your multi country payroll operations. This framework operates on a global level but is flexible enough to accommodate local country nuance. Operational processes within this framework are scalable and can be duplicated quickly for any new country/local provider setup.
| Global Payroll: Organization Health Check
5 14
“To run global payroll as a globally managed function, it requires a common standard or framework across countries. Platform integrations are needed to accommodate local country requirements. We represent a transformative leap from the aggregator service management platforms. Payslip enables global employers to unify and integrate multiple local providers onto a single platform while also facilitating comprehensive reporting on a global level. “
Fidelma McGuirk, CEO & Founder
The Payslip global payroll control platform will prepare your global payroll team for the challenges that lie ahead. It is designed to solve complex global payroll management problems and help global employers deliver multi country payroll in a smart, secure, compliant and efficient way. Our integrated cloud-based platform is an example of digital innovation in practice. Our experienced team are here to help you get started. For more information, talk to us today.
| Global Payroll: Organization Health Check
5 15
Take a Free Trial
payslip.com
| Global Payroll: Organization Health Check
2 5
Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15Powered by FlippingBook