The Payslip platform and cost savings
Cost management is a priority at every multinational company around the world -global payroll departments, like all other departments, will be asked to carry out their duties in the most cost- effective manner as possible.
They will therefore look to confirm if the processes in place are cost optimized and if not, what can be done to ensure that the delivery of global payroll services align with the overall cost saving initiatives in place at the company.
In this article, we will examine how technology platforms can help to introduce direct cost savings in the overall process of global payroll delivery, specifically when it comes to multi country global payroll processing.
Complexity is expensive
The global payroll landscape at multinationals today is characterized by complexity, and complexity is generally associated with high costs as solutions to manage this complexity need to be paid for. Complex processes require management and dedicated, skilled payroll professionals to handle them – all of this comes at a cost as specialist payroll professionals are rarely easy to find.
Multi country payroll involves the regular salary payments of thousands of employees across different countries around the world. Different time zones, currencies and local country nuances mixed in with global payroll professionals in several different locations can all add up to a costly global payroll process. Local expertise and in country payroll provider vendors need to be sourced, vetted, and paid on an ongoing basis- their charges and fees can vary from country to country and additional payroll services usually result in more invoices to be paid.
Most multinationals today operate their global payroll function as part of an imperfect process where cost management and outsourcing are difficult to control. Employees around the world need to be paid and global payroll teams will argue that any costs associated with this process are justified as the consequences of payroll failure are just too damaging to risk. As companies scale and grow, payroll becomes more expensive and complex, and therefore more costly to manage. Global employers are now seeking technology solutions that can help them to better manage payroll systems and do so in a more cost-effective manner.
Global employers need to choose a global payroll system and model that can effectively pay all of their employees accurately and on time every month. The model they choose will come with fixed and variable costs- many employers are now wondering if there is a better way to deliver global payroll-one that improves efficiency while at the same time lowering the overall costs of running this business-critical department.
The Aggregator model is a popular global payroll choice but it is rarely a cheap one – aggregators have a network of local country providers who they must pay as part of their service delivery – the cost of which are passed on to the global employer. This can be especially questionable from the employer’s point of view as they have no say over which payroll provider the aggregator chooses to process their payroll. This can result in an unfortunate set of circumstances where the global employer ends up paying for payroll services that are less than satisfactory and find themselves tied into a long- term contract with limited flexibility for local payroll provider change.
Can technology bring cost savings?
Yes, it can- integrating and unifying multiple vendors onto a single platform can result in significant cost savings as well as impressive productivity gains. Moving to another platform is one way a global employer can take action and retrieve control over global payroll costs that may have been spiraling out of control.
Payslip is a technology platform designed to deliver global payroll in a more efficient manner- streamlined processes, automated workflows and standardized data are part of our platform service and these three combine to result in significant cost savings for many of our clients. This is about using innovative technology to scale the process of not the man hours- using Payslip, the technology does the heavy lifting when it comes to global payroll processing. Global employers who use our technology find that they are in a position to cut down on things like contractor costs, because standardized processes are duplicated across countries, making it easier for existing payroll professionals to do more.
Save with Payslip
The Payslip platform provides customers with an innovative technology solution which solves many global payroll management problems. The platform enables global employers to consolidate and standardize their payroll data (Including payroll data from hcm and HR systems) onto a single platform which they can then use to generate helpful cost, performance, and audit trail reporting. These reports can provide valuable facts, insight and trending information which can serve to identify potential areas for improvement in terms of cost management.
Some of the cost savings and productivity benefits our customers report seeing include:
Self service employee access to their own data is also available on the Payslip platform. Enabling employees to access online payslips is good for employee engagement and it can also reduce the number of unnecessary queries being sent to the global payroll department. This is an efficiency and productivity gain, many global employees today expect easy access to E-payslips.
Using Payslip technology is not so much about reducing global payroll professionals headcount- it is more about realizing cost gains through increasing their productivity- our automation workflow process creates time in a monthly global payroll cycle for these payroll professionals to focus on key priorities and not have their time drained with manual entry and constantly checking validations. In fact, Payslip technology often reduces the need to hire further global payroll professionals to handle increased workloads due to scaling into new countries – because our software scales the payroll system and not the manhours, your global payroll professionals can leverage our innovative technology to do more in a more efficient way.
The predictable and repeatable global payroll process is ideal for progressive and high growth companies who have a mandate to scale and grow into new territories. Growth and scaling means competing for new hires, new customers and market share- this process will go much smoother if you empower your global payroll professionals with automation, standardization and next generation digital tools that help them deliver services in smarter, more efficient ways.
A strong return on investment can be realized over time with a technology platform like Payslip. Any initial investment can be recouped via cost savings and productivity efficiencies that result from using the innovative tools on the platform. Automation saves time and money, standardization makes scaling easier and more cost effective and global reporting helps identify further areas for cost optimization.
There is a correlation between cost savings and innovation-companies who make an attempt to be innovative are often rewarded improved expenditure figures along with happier, more productive employees. Global payroll software innovation has often fallen behind due to lack of ambition. Now Is the right time to be ambitious and innovative- Covid-19 has proven that a lack of technology is counter-productive in the processing of global payroll- for example, many companies have faced difficulties with enabling their global payroll professionals to fully access all of the payroll data they need in a remote environment. Digitized processes and smart technology tools are needed more than ever to manage global payroll in a better way and reduce overall processing costs. Talk to our team today and learn more about how the Payslip platform can be a cost-effective way of delivering multi-country global payroll.
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