Global payroll strategy: Buy in from key decision makers
Developing a strategy around the best way to deliver and manage global payroll is becoming more and more important as multinational companies look to scale into new countries and territories. High-growth companies are seeking new business and markets to target and penetrate- they want to act decisively and move quickly in order to act on this mandate for growth efficiency. To do this, they need to know that their core business operations are agile and ready to keep pace with rapid and aggressive expansion plans.
The payroll department is a mission critical function and therefore, a strategy needs to be in place, so it is capable of handling the kind of rapid scaling that many high growth companies are keen to pursue. Global payroll is foundational to executing a growth agenda so if you get the global payroll strategy correct, then you are giving your payroll team the best opportunity to respond effectively to the many new demands and burdens which will likely come its way as a result of any expansion into a new country and the general complexities of scaling-up.
If you get the strategy wrong, the payroll department will not be in a position to support any major transitions and it can even end up being a blocker or chokepoint to progress. After all, if you cannot pay new employees in a new country then you cannot hire and offer attractive compensation packages, and things simply stagnate. In this article, we will examine which key decision makers need to buy in to any plans when it comes to establishing a global payroll strategy that is fit for purpose and ready to support the strategic objectives of a multinational company.
Global Payroll Manager
This person should have the largest say and the greatest level of influence as he or she will ultimately be responsible for processing global payroll and meeting all deliverables. This is the person who will outline what is needed for their department to operate at its best. The things they are likely to want to have a discussion around include:
- the current status of global payroll delivery
- the key business drivers and targets in the organization
- the payroll model that best suits these business drivers
- available budget and financing to acquire and implement this payroll model
- payroll professional hiring needs
- investment in platform and technology support
Today v The Future
The global payroll manager will likely begin by assessing how things currently stand and look at employee headcount and geo-location spread, check for long-tail countries and also examine the current payroll vendors and delivery model structure in place.
They will define how the team processes global payroll right now, what challenges they are facing, what challenges are coming down the line in the future along with what resources they require to meet them and deliver on their many obligations. Future challenges will include:
- Explosion in compensation packages
- Expansion of Labor and tax laws
- hybrid working model and ‘work from anywhere’ concept
- Upsurge in specialized roles and scarce labor pools
They will ask if central control is the best way forward or if the way the company is structured means that a decentralized model and payroll system is a more suitable fit. The company may currently have a shared services hub for the delivery of business-critical functions, and this is something that will be a strong influence on global payroll activity and decision making.
They will also make a list of the key stakeholders they need to engage with for discussions around an overall global payroll strategy. The needs of other key departments in the multinational will play a role in how global payroll is structured. The global payroll manager first needs to understand fully what the company wants to achieve and where it is going in order to map out a process for a payroll function to support. This means getting clear on likely salaries to secure talent, likely location hubs for employees and what local vendors or payroll systems exist in these locations to help.
They may look to define their needs in terms of visibility and control i.e. which global payroll process best helps them to see what is happening across multiple payroll teams in several different countries. They will also want a payroll system that is capable of delivering high-level consolidated reporting which assists with this visibility. Most important of all, they will be looking at how to implement technology that can introduce efficiencies. Smart tech that can automate repeatable tasks and standardize data that is currently arriving into their department in multiple formats from a variety of sources in their payroll provider network.
Payslip has always recognized the importance of strategy when it comes to a global payroll solution. The Payslip global payroll control platform can help implement a payroll strategy as it improves day-to-day processes as well as equipping teams with the digital tools they need to meet future challenges
Businesses are better positioned to scale into new territories if they make Payslip technology a key driver of growth efficiency in their payroll eco-system. Our technology helps to automate repeat processes, standardize data, and produce consolidated reporting. Multi-country payroll and international compliance requirements can be managed from a single platform.
This helps global companies scale quicker and more efficiently as they have end-to-end control and full visibility over their global payroll process. The global consolidated reporting functionality in the Payslip platform can provide real-time analysis on the progress they are making in new territories while the cloud-based environment facilitates the secure transfer of data between global payroll and the wider IT ecosystem of the organization.
The fact that buy in for a global payroll strategy requires input and approval from such a diverse range of stakeholders is proof of the complex nature of modern multinationals. Scaling into new territory means a lot of departments need to align their goals, develop common strategies and work together in the decision-making process to deliver results.
A global payroll strategy needs to work for the wider business as well as delivering payroll to employees. Key stakeholders will want a say in what global payroll operations strategy will look like for the next 10 years and they will be interested in learning about any technology that can strengthen and de-risk the overall process.
For information on the Payslip Platform contact us today.