Global Payroll: From service provider to strategic partner
A company’s global payroll department controls everything from paychecks and tax law compliance to new and existing employee paperwork and records. Beyond administrative day-to-day tasks, payroll can also help a business scale into new countries- and an agile and responsive global payroll control platform can facilitate the rapid onboarding of local payroll providers and new employees, ensuring a company is always growth ready.
Payroll technology can –and should – be viewed as a strategic growth enabler and a facilitator of global scaling. The data produced from the payroll department is crucial for executives to make informed decisions on key business strategies such as global expansion and hiring tactics. A suite of advanced payroll reporting tools can produce the necessary data surrounding total labor costs, country comparison reporting, year-over-year labor cost comparisons, gender pay gap reporting, variance reporting, employee trends, and more. These are the kind of bigger picture insights and complete data-driven observability into all payroll elements that CFOs and members of the C-suite are saying they need today.
While payroll aids in many different aspects of decision making, the CFO and financial operations team especially benefit from payroll data. A global payroll control platform featuring innovative reporting tools enables a high-level overview of labor costs across all locations the organization is operating in, and this data can be useful for country comparisons to see where labor and staff costs differ, drill down into pay elements including bonuses and overtime, and get a clear understanding of where money is being spent. Predictive analytics also allow for visibility into what labor costs will likely be for the company in the coming years. Decisions can be made when global payroll costs are in a known state, but many organizations are struggling to get to this state.
Human resources (HR) executives also benefit from payroll technology, as it allows them to obtain a full, clear picture of employee data – a two-way data flow between HR systems and payroll systems is required for this, so systems integrations are key. Innovative payroll technology helps to create and store valuable information regarding local country elements including unique tax laws and social security items specific to the area. Digital reporting can produce metrics around gender pay gap reporting and diversity analytics which can help keep the HR department aligned on the company’s overall values and mission statements in these particular areas.
A global payroll control platform also provides global payroll managers with greater visibility and control around multi-country payroll, leading to overall operational efficiency. A centralized platform allows global payroll teams to have a single platform view of all countries within the payroll network, which payrolls are due, which are complete, and, if applicable, which are having payroll issues. There is an increasing need for a unified platform to bring the whole payroll process from calculation input data right through to reporting out into last mile systems such as accounting i.e., a need to manage the entire payroll process end to end.
A unified platform also allows for standardized data and processes across all locations, meaning that everyone is working within the same data structures as opposed to receiving data from multiple systems or following a different process in each country. This paves the way for consolidated reporting in a single currency and easy data comparisons between countries. When global payroll professionals are using the same tools within the unified platform, swapping tasks between team members in different countries is an easy and efficient process.
In order for C-suite executives to take advantage of payroll data, it’s recommended to invest in a global payroll control platform. Without it, leadership teams will struggle to retrieve the data they need to make strategic decisions and, because the data will have to be pulled from different sources, there won’t be a clear picture of the total cost of employment for a globally dispersed workforce. A global payroll control platform will help leaders make decisions about the future of the company, especially when it comes to the financial health of an organization.
Businesses can place more value on the global payroll department by supporting it with financial investment, the same way companies have supported the sales, marketing and HR functions in recent years. Invest in a cloud-based payroll platform to harmonize global payroll delivery and create ecosystem power by connecting it with HR, Finance and the broader external business ecosystem. Then you can make the shift from legacy technology over to a global operation model featuring standardized & digitized processes. Then your payroll system will be transformed into a valuable strategic partner offering true insights and bigger picture analysis, so the C-suite always feel ready for what is coming.
For information on the Payslip Platform contact us today.
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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
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.
Payslip also made our payroll process entirely transparent, which is invaluable to our payroll teams as we continue to grow and scale at such a rapid pace.
HR Systems Lead, Wave