5 indicators your global payroll model has not moved with the times
Multinational companies around the world have a few options when it comes to choosing which global payroll model, they think best suits their needs. Many of these companies simply operate with whatever model they currently have in place and as yet, have not given a huge amount of thought to changing it. Some feel that as long as their global workforce is paid accurately and on time, this is a clear indication that they have chosen the correct global payroll model and are operating at a high level of payroll efficiency. This view is generally not supported by the payroll professionals who deliver payroll on a monthly basis- they often feel that there is ample room for a large degree of improvement both in operational efficiency and the technology at their disposal. In this article, we will look at some of the key factors associated with a global payroll model that is no longer fit for purpose when it comes to efficiently delivering multi country payroll for a large, complex multinational company.
Not in the cloud
Is most of your data and documentation still held on the premises and not available for easy access in a cloud-based environment? If so, your payroll department is not following widely held best practice when it comes to secure data management. The pitfalls of this have probably already been highlighted during the current COVID-19 pandemic, which has created a very urgent need for payroll professionals to have remote access to all the data, documentation and authorizations they need to do their job. Cloud based infrastructure has become essential to improving the operational efficiency of global payroll- Excel files stored on a desktop in an office is no longer sufficient to handle the data complexities that exist when a company has thousands of employees spread across a range of countries and continents. A digital cloud platform offers a more fluid and flexible environment where actions can be completed quicker, data and files accessed remotely, and tasks can be switched easily between different team members located in different countries or regions. This type of environment is much more supportive of payroll professionals who are under pressure to meet regular deadlines and need technology to help them deliver payroll remotely during a pandemic.
Manual. Not Automated.
A heavy reliance on manual process is another indication that you are operating in a global payroll environment that has not kept pace with innovation. Manual processes are time consuming and also subject to human error- they introduce risk to payroll data instead of managing it. They also tend to be an unnecessary strain on staff morale- payroll professionals see other colleagues working in a more innovative environment with a greater degree of technological support, and they feel somewhat under served. They also find it strange that such a mission critical function as payroll does not receive the same investment in technology as other business functions. Validating payroll data and calculations returned from ICPs or payroll vendors is a time drain that needs to be removed via automation technology. If repeatable tasks become automated, this immediately releases payroll professionals to work on other priorities. It also takes human error out of the equation and everything gets done faster. Automation technology such as that available with Payslip introduces speed, accuracy and control to a workflow process. It also introduces the concept of technology doing the heavy lifting, allowing professionals to view it as a partner that helps them to do their jobs better and meet key global payroll deliverables on a regular basis.
No visibility and control
If a general lack of visibility over your end to end global payroll operations is a persistent problem, then this is a key indication that the model you are operating in is not capable of delivering everything you need to make effective decisions. We regularly hear from global payroll managers who tell us about their struggles when it comes to clearly seeing what is happening in their payroll operations, from a global perspective. They are able to extract data and insights perhaps at a specific country level but getting a clear overview or being in a position to drill down into key figures is something their current model does not deliver to them. This is usually because their technology was not designed to operate to deliver this level of visibility. A lack of visibility leads to a few problems: managers cannot see what is happening, decisions cannot be made based on real-time data (because it is unavailable) and payroll teams are not in a position to respond to advanced or nuanced reporting requests from leadership teams as they simply do not have the tools at their disposal to deliver this. This results in global payroll teams feeling that they’re not in control of their own processes. How can you control what you cannot see? What is required is a single dashboard view of all countries and regions in your payroll ecosystem. For this, automated and standardized data flows would need to feed into a piece of software to deliver this view. The Payslip platform offers a user-friendly dashboard show multi-country payroll workflow satuses in one place. This provides immediate visibility and control over end to end global payroll operations- something that is much in demand as the Coronavirus disruption rumbles on in 2021.
Tech not connected to the wider eco-system
Multinational companies in 2021 require many of their business divisions to not only deliver day-to-day business process services but also to become a strategic partner in delivering overall business objectives. This means that payroll departments everywhere must now be connected to the wider IT systems in a company such as the HCM or related finance functions. It is no longer efficient to operate in isolation and payroll is now part of a wider ecosystem. Payroll data is now expected to synchronize with human resources and finance systems so that these departments can also analyze key payroll data and use it when planning for the future. Innovative and flexible technology can help the payroll department integrate quickly with other key business functions. A technology partner is required to ensure that this process is handled with the required level of expertise.
Employees call for their data
Employee expectations have risen in recent years and they now wish to feel in control by having 24/7 access to their employee data. Providing then with this data helps them to feel valued and empowered and also makes them feel that they are working in a modern and innovative company. Having employee self-service as part of your payroll software also greatly reduces time consuming and unnecessary calls to payroll professionals from company employees. It also helps with the employee on-boarding process and improves overall efficiency- employees can upload relevant data to the payroll system when they join- personal details, tax history and other payroll elements like benefits. This can save a huge amount of time and be a cost-saving. It is important that the experience of accessing their data is the same for all employees regardless of location.
Payslip delivers all of these and more
Payslip’s automation and integration technology delivers standardized global payroll for multinational employers. This technology is deployed from a cloud-based environment and supports remote employee access to all essential documentation and payroll data. It applies automation to any repeat payroll tasks so manual input is avoided or minimized where it can be. It provides a user-friendly single dashboard view of the end to end payroll process and payroll managers can easily get an at a glance view of how things are looking. It is also integration software designed to seamlessly integrate with most HCM&HR systems, allowing the platform to add value to the wider IT ecosystem, particularly when it comes to global consolidated reporting. Talk to our team today about just how quickly your payroll can be set up on our innovative, flexible cloud-based platform.
Using Payslip, we can manage all our payrolls across nine in-country vendors on one platform. When the global Covid-19 pandemic arose, it was not an issue from a payroll perspective, and critically getting everyone paid. The Payslip platform enabled continuity for our international payroll service including the fast and seamless implementation of the Payslip Employment Self Service during this time.
Payroll Manager, LogMeIn
Payslip as a technology platform has added a missing piece in our payroll set-up. As an international company with offices in 16 countries, it’s important to us that every employee at GetYourGuide has the same great experience when accessing their pay data.
At the same time, we work well with smaller local payroll providers, supporting us with direct local expertise in their countries. We were able to combine those two elements by placing the Payslip platform in the middle, to simplify reporting and communication with local providers, and to have one simple employee-facing solution across all locations.
Head of HR, GetYourGuide
With business and employee growth rates of above 50%, we rely on our vendors to deliver on time, every time. Payslip’s workflow automation, enables Phorest to manage our payroll provider process – data driven, real time and transparent. Payslip saves us time so we can focus on our business growth.
International Payroll Manager, Phorest