Aggregator model: 4 key ways Payslip differs from the Aggregator model

March 1, 2023 | 5 Mins Fidelma McGuirk

The aggregator services model for running payroll has been around for decades now- and it is still utilized by many multinational organizations around the world for their payroll processing. But, we know from talking to our clients, global payroll professionals and industry leaders, that this services model is really no longer sufficient to meet the demanding challenges of global payroll delivery and management in 2022.

There was a time and a place for it, but it is a service business model that largely fits into a ‘one size fits all category’ and is also not designed to handle the large levels of complexity associated with global payroll delivery today. Many global organizations still have the mistaken belief that this is the only global payroll solution option available to them when they need to pay employees located in different locations around the world and manage an international workforce.

In this article, we will be looking at several ways in which our global payroll control platform differs from the traditional and legacy aggregator business model work. We will outline the reasons why it is a good idea for you to be on the right side of history and deliver and manage your global payroll inside a secure cloud environment, that is specifically designed to help scaling organizations manage the varied complexities associated with their multi-country global payroll delivery today.

1 We offer a global framework for payroll

Why? Because this is what multinational companies really need – a global framework for their payroll data and multi-country payroll delivery: a framework that is global in nature but also flexible enough to account for local payroll country nuances and tax authorities. This is crucial because payroll is essentially local and different in every country.

A global framework involves standardized data and standardized processes across all of your countries- the result is a single way of working and best practice for all countries- this goes a long way to reducing the data and process complexity that tends to block visibility and control. If the payroll data is in the same format and the process is the same across countries, everything becomes simpler, faster and smoother-visibility and control are immediately enhanced because you can actually see what is happening across your international payroll countries and network of local country vendors, who will always be needed to help you deliver payroll operations locally.

A global framework can then be duplicated and applied to any new countries that the organization moves into-this makes your global payroll process an enabler and facilitator for growth efficiency, instead of a blocker or choke point to growth and progress.

2 Automation and integration are core to what we do

The complexity and challenges associated with global payroll in 2022 require payroll solutions with a focus on automation and integration. Slow, cumbersome and error prone manual data and spreadsheets need to be replaced with robotic process automation and rapid workflows between connected systems and payroll software.

Integrations are crucial to payroll delivery because payroll cannot operate in isolation-data needs to flow into the global payroll system from connected departments such as HR and finance. It is essential that HR systems and HCMs are integrated and connected with payroll systems. Rapid, accurate and seamless bidirectional data flows are needed here so that the necessary data flows in to process payroll, and important data flows back out of payroll and into HR and finance for crucial payroll reporting and analytics.

Payslip build and develop automation and integration technology designed to harmonize global payroll operations at multinational companies around the world. Automation and integration are core to everything we do, and these are the key features that can provide the level of innovation and power needed to transform global payroll from manual processes and legacy systems into a smooth and cohesive payroll management function.

3 We return choice and control to the global employer

One of the myths of the aggregator model, is that they offer you control over your global payroll processing. This is not true, instead you surrender control because you no longer have a choice over the local country providers who process your payroll. You are forced to work with the vendors who sit within the aggregator’s network- the result of this, is that you are simply out of luck if you want to process payroll in a country where the aggregator does not have a vendor presence in their network, and you are similarly out of luck if the quality and performance of the vendor inside the aggregators network is not of the quality you are seeking.

Surrendering this control, and the subsequent lack of visibility, is a hugely unsatisfactory situation for global employers today, and they are now actively seeking an alternative solution which enables them to deliver multi-country payroll on their terms-that solution is Payslip.

Our global payroll control platform is vendor agnostic-this means you can select your preferred vendors and maintain any positive business relationships that you already have in the vendor world. These vendors simply integrate easily with our platform, and you carry on business as normal.

If you are moving into a new country where you have no vendor relationships-you can either choose the vendor of your choice in that country, or select from a vendor in the Payslip network, who may already be connected to our platform. This is payroll being delivered on your terms with control returned to you, the global employer. You don’t want to have a 3rd party dictate your choice of vendor to you- it is your payroll; it should be your choice- Payslip ensures that this choice always remains with you. If you are unhappy with the performance of a specific vendor, you can simply swap them out and on board a new one onto our platform.

4 A whole new level of reporting and bigger picture insights

The services aggregator model was designed to process payroll each pay period, largely on their terms and in line with how they run their marketplace business model. It was not designed to deliver the kind of bigger picture insights associated with comprehensive, detailed multi-country reporting. Most of their systems and technology stacks were not built with this level of country-by-country reporting in mind.

The Payslip global payroll control platform recognizes the importance of bigger picture insights in payroll data for informed strategic decision making. Leadership teams need to be able to see the global picture but also drill down into the local data to get an understanding of the true cost of labor in their organization.

This means being able to compare costs across countries in a single currency while also drilling down into specific pay elements like tax, bonuses and overtime. It is this level of macro to micro detail that results in bigger picture insights-these are the kind of insights needed for truly informed decision making.

Payslip offers multicounty reporting on a self-service basis, enabling multiple different stakeholders to run dozens of different reports and drill down into the details when needed. This is next level reporting that is needed more than ever in a post covid world where labor costs and the makeup of the international workforce are going through a period of intense change. This is the level of reporting that leads to payroll departments becoming advisory instead of just transactional

Reporting is needed to keep a handle on costs and track any changes with workforce management. Organizations operating without bigger picture insights extracted from Payroll data are often flying blind and making decisions without full clarity- this is the path to expensive mistakes. Payslip’s reporting and analytics capabilities puts the global employer back in the driving seat, giving them access to the data they need, when they need it.

The above 4 reasons are just some of the ways our global payroll control platform makes us different from the services aggregator model. This decades old model is unlikely to be sufficient to meet your global payroll needs if you currently have multiple countries on your books and are also growing at a rapid rate, requiring you to pay new people in new countries.

Now is the right time to make the shift over to a cloud-based platform specifically designed to manage the complexities you are facing on a day-to-day basis-talk to our team today.


For information on the Payslip Platform contact us today.




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