Payslip and Aggregators: What’s the difference?
The payroll industry is populated with a few key providers who all play important, but distinct roles in the very important payroll eco-system. These roles exists because companies have different needs outside of the obvious payroll function of ensuring their employees get paid accurately and on time.
To give you a picture of these needs, think of the very common scenario of a company looking to scale operations into a new country. This expansion can be driven by success, a search for new talent or a company merger or acquisition. A payroll department is faced with a new set of challenges very quickly: a larger workforce in a new country where they do not have a payroll provider and are unfamiliar with local laws and regulations. They need local expertise, a vendor they can trust and some form of system that allows them to access and manage the new country payroll. They also want payroll activity in this new country to be a part of their overall payroll reporting. This is payroll on a global level and to achieve it, employers have options.
Payslip and Aggregators operate in this space and, in this article, we tell you a little bit more about the services we provide as well as how we differ from the aggregators.
What is an aggregator?
Companies with employees spread across several countries like the appeal of outsourcing their payroll to an aggregator. This is a business that partners with multiple local (in-country) vendors in order to process payroll for their client. The aggregator takes the payroll data from the employer and distributes it to its partner network. The local vendors use this data to calculate the payroll on a local level and send payroll calculation data back to the aggregator on an individual country level. The aggregator takes on the responsibility of managing the local payroll processing on behalf of the employer. They appoint an account manager to communicate with the employer. Aggregators use their own network of providers (who will have local expertise) to deliver this service and the client is restricted to the providers in the aggregator network. Aggregators are unable to provide real-time reporting and cannot always respond quickly to employer queries. This model can be expensive and is commonly used when international employers have employees spread over a large number of countries.
Who is Payslip?
Payslip is a platform for companies who need more. Companies who want to introduce technology to create efficiencies in a few key areas:
- Standardized data- data coming from a lot of sources in different formats makes reporting difficult and time-consuming. They want it in a single format and delivered in real-time.
- Automation: They want software that automates the many repeatable payroll tasks faced by large companies and lets them manage the process.
- Select new partners or maintain existing relationships: They want control over who processes their payroll. They want to choose their own vendors. Or keep someone they like. The aggregator model does not offer this.
- Integrations: They want their payroll data to play a role in their wider eco-system. They want software that integrates payroll vendors with employer HCM and finance
The core difference
Payslip is not a payroll service for processing payroll, we don’t calculate the payroll or pay employees. Payroll is about a lot more than the calculations and multinational companies need help gathering data, managing vendors, creating reports, automating manual tasks, meeting compliance obligations and supplying business intelligence. This is where we excel.
What we do
We are an Automation & Integration technology partner that delivers standardized global payroll for multinational employers around the world. We integrate with Finance HCM, and outsourced vendors on a single platform and our technology automates payroll processes and standardizes payroll data. This helps companies to centrally manage their global payroll operations with full visibility and control.
How Multinational employers benefit from Payslip
They get standardized data across all their payroll countries which helps them to quickly produce consolidated reporting. Manual repeat tasks get automated, so they are performed quicker and there is less room for error. They get high level visibility over their multi-country payroll processes, something that has been a struggle for them to achieve. They get to manage their entire global payroll operations from one platform. They get to retain any valuable relationships created with in-country providers and have the flexibility to choose or change which vendors they wish to work with. Their employees can access their pay related information whenever they want using a self-service portal, and the experience is the same across every country. They get multi-country reporting, KPIs, and real-time dashboard analytics. They get independent SLA and performance monitoring of vendors.
A technology platform?
Yes, one that integrates into the broader IT eco-system in a company who have employees in several countries. The platform sits between employer’s HCM and payroll vendors and automates data flows. The payrun data files (calculated by the actual payroll providers) are prepared and updated via these data flows. The data is sent to this single platform so employers can manage the end to end payroll process and have global consolidated reporting. The platform works on three levels from an employer perspective; employer, payroll provider and employee. The employer gets to see and control the payroll process, manage the in-country providers and also provide employees in all countries with self-service access to their own data.
Payslip use automation and integration technology to help multinational employers around the world achieve full visibility and control over their global payroll operations. Our technology can quickly transform how you run international payroll. Start your free trial today.
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
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