Automation is a hot topic and its value is being considered in a wide range of departments and business functions across multinationals around the world. Its popularity and widespread adoption seem inevitable as the logic behind it is sound and the cost savings and benefits are becoming clearer for all to see.
In this article, we will explain what automation would look like in terms of a global payroll process and then deep dive into some of the key benefits associated with it.
What is it?
Automation is the process of using machine learning software or robotic processes to automatically enter and validate data or apply automation to any repeat process workflows. A piece of technology takes over the process and configures computer software to copy the actions of a person performing a digital task manually to execute a process.
You can view this technology as a ‘robot’ capable of entering and validating payroll data as well as analyzing or interpreting data feeds. This is Robotic Process Automation (RPA) in action and it can be applied to numerous areas of the business.
Why does it matter?
It matters because, in theory, it can be introduced to massively improve speed and efficiency on any repeatable computer process that is currently being delivered by a person. Understandably, this has wide reaching implications as repeatable processes form a part of many business unit workflows and therefore the technology is relevant to many departments. If it were to be adopted and deployed in several departments at once, the efficiency gains, cost savings and productivity output could be huge. It is therefore viewed as a business transformation technology that can radically alter the way things are currently done.
Is it the future?
Yes, adoption is increasing with each passing year, more and more discussions are taking place about the use of it, it has entered mainstream business conversation and major brands are already using it with significant results.
In fact, there is an argument that it would be more accurate to say that it is the present, as we have now reached a point where companies who do not deploy it quickly or are hesitant about using it, are considered to be behind the curve. Many companies who pride themselves on being progressive, ambitious and digitally focused, would not wish to have this label applied to them. Those who are slow to act are likely to find themselves on the outside looking in as more proactive companies make huge productivity strides with this next generation technology.
Can it be used for global payroll?
Yes, to great effect- global payroll is a business function that relies heavily on manual payroll inputs and is currently characterized by dated and legacy technology that has not kept pace with the increasing demands being placed on the payroll operations professionals who work in the department.
They need assistance to help them process the high-volume payroll data that is associated with delivering global payroll in multiple different countries around the world. More employees mean more people to be paid and this means more data collection, entry and validation -it is no longer sustainable, nor has it been for quite some time, to rely on manual data inputs for this kind of work. It is very time -consuming and an accuracy risk as there is greater room for error when payroll data is entered manually.
Robotic Process Automation can be introduced to perform both the data collection, data inputs and the validation checks. Bulk files containing large amounts of data can be imported, processed, validated and checked in a matter of seconds. RPA software can move files and folders, copy and paste data, fill in forms and extract data for reporting purposes. It can also be implemented and configured to highlight unusual activity or variances or even trigger system responses and alert other systems to perform tasks. This kind of automation would represent a radical digital transformation of global payroll processing and delivery.
What are the benefits for global payroll?
Speed
Data inputs, workflows and file checking that previously took days could now happen in a matter of minutes.
Accuracy
RPA does not get tired and does not make mistakes- it is available on weekends and capacity can be increased at any time. Anyone can make a mistake and an individual while processing global payroll data could make a keyboard error and add an additional ‘zero’ to a pay amount. We all know what the consequences of this would be - with automation, human error is removed from the process and a major payroll risk is mitigated.
Security
Automated transfers ensure less human contact with sensitive global payroll data -automation can therefore enhance information security procedures at a multinational.
Analysis
RPA can bulk check huge volumes of data and search for errors, variances and anomalies using preconfigured algorithms - A task normally done by people and one that could take days.
Time
It is not just about saving time when it comes to entering and validating global payroll data -it is about ‘returning’ time to global payroll professionals, allowing them to focus on other elements of the payroll process. Automation creates time in a monthly payroll cycle, and with more time comes a corresponding increase in efficiency and quality of output.
Cost efficient
RPA will prove cost efficient over the long term- there will be less need to hire payroll contractors during busy periods and existing payroll expertise can use their time to introduce other cost savings efficiencies to the global payroll department. Money can also be saved via reduced need for exception investigation, especially post payroll, as issues are caught earlier before payroll is authorised, bank payments are processed, or general ledger reports are produced
Save on local fees
Automated production of multi-currency and multi-country general ledger and bank file reporting saves considerable finance time and direct fees to local country payroll providers
Streamlined processes
Automation can help with the entry, validation and comparison of global payroll data across different countries, creating a more streamlined and cohesive experience for global payroll professionals who benefit from using common workflow processes which are automated in multiple locations.
Scalable process
Multinationals are now scaling at speed - leadership teams want assurances that their global payroll function can hit the ground running in a new territory, quickly enabling payroll for new employees. Effective automation can help build global payroll process scalability and flexibility to support company growth.
Employee morale
Global payroll professionals want to feel empowered and valued -giving them the digital tools to do their job better provides a more enhanced employee experience- nobody likes manual data entry and automation takes this burden off them, giving them back their valuable time to focus their expertise and experience on other parts of the global payroll process
Digital innovation
Automated processes pave the way for zero or very light touch global payroll. This is progressive digital transformation and optimization in action, enabling the global payroll department to be like other business critical units that deploy next generation technology to improve the way to deliver their services.
Robotic process automation brings with it many benefits to the payroll process, And they are not limited to time saving functionality and significant cost savings. The benefits are wide ranging and comprehensive it is become clear that automation should be a part of the global payroll process for all multinational companies who considered themselves progressive and digitally focused. A payroll team utilizing automation as part of a global payroll solution will find that they are no longer constrained by manual processes and time-consuming tasks -instead, they will be liberated by next generation automation technology that dramatically improves the delivery of their multi country global payroll
Payslip provides Automation & Integration technology that delivers standardized global payroll management to multinational employers. We look to bring in end-to-end fully automated workflows where possible which automate the preparation, sending, validation and approval of GTN pay-run calculations. We automate any repeatable recurring and predictable flows and free your people so they can use their expertise to improve operational excellence and contribute more to the business growth.