A common observation of the current global payroll landscape is that multinational companies are struggling to manage an Increasing number of local country payroll providers. Global employers know that they need help in managing all of these vendors but are not sure where to turn to find a solution. Some are aware that there is some form of technology out there that can help but many are unaware that there is technology that was specifically designed to solve their global payroll challenges.
Some looking to take advantage of a gap in the market have attempted to come up with a solution that broadly addresses a wide range of unmet needs in the global payroll industry. This is generally good news but, in many cases, the creator of the technology is understandably, looking to cast a wide net and catch the interests of as many global payroll departments as possible. Therefore, for business strategy and technology production reasons, it is usually the case that they pursue a one size fits all strategy and then go to market with this product. This is not the specific global payroll technology we are referring to ( more on that later) and while it can solve some of the issues the global employers are facing, it does not resolve other challenges and may not be the best option in the long term.
In this article, we look at technology solutions that can be of assistance at companies who do not have any global payroll technology in place and look at the technology solutions available to help you get control and apply some management if it is the case that you currently have several vendors delivering services to you.
We know from talking to many global payroll professionals and industry leaders, that many people who do have technology tend to feel stuck with technology that does not serve their interests. They are paying the penalty in the form of a long-term contract, with software and technology that is not agile enough to be customized to the specific needs of their global payroll delivery and it is causing problems.
Look around to get it right
It is often the case that people view the aggregator payroll model as their only option when it comes to managing multivendor complexity -this is not true and there are alternatives. For example, a global payroll technology partner can offer something far more flexible and their technology can be adapted and customized to suit your specific needs.
Habits form quickly and people fall into routines when it comes to service delivery, and contractual obligations coupled with the hassle of a change management project means that going in a different direction could be considered more hassle than it is worth. But, investing in the technology stack is about long-term sustainability as well as immediate improvement in global payroll process and it is well worth the effort to look around and get it right the first time.
It can be the case that busy schedules and pressurized workloads mean that people often have very little time to assess the market, look around, and see what is available that could improve things. People are either uninformed about the technology solutions out there or they believe that the systems deployed by aggregator models are their only option. This is a false assumption. Global payroll technology is advancing all the time, there is a clear business case for significant investment in digital upgrades and integrated platforms featuring automation and standardization tools are the future of global payroll delivery. All this means, you don't have to rush in and choose an aggregator model if you find yourself with a complex multi-vendor landscape. It also means, that if you have established strong relationships with payroll partner providers, you now have the option to keep them instead of surrendering these relationships as part of a move across to an aggregator model.
Many companies choose to go down the route of an aggregator service- and while there may have been very solid reasons for choosing this model, there is also a growing level of discontent with the lack of flexibility and customization involved in this model. While the aggregator platform may take many of the hassles away from a multinational when it comes to dealing with country specific vendors and local legislation, it is also not designed to deliver the level of agile and responsive workflow processing needed to deliver global payroll across multiple countries at the same time.
The nature of the aggregator model is that it is designed to deliver the same range of services in the same manner to a number of completely different companies. This may not suit in the long-term, so it is then time to consider a technology partner who can deliver specific and tailored payroll solutions that are all about you.
Visibility and control
We know that global employers want to be in control of the relationship with the local country vendors and be able to select them- but with the aggregator model, the employer is unable to continue relationships with preferred vendors who have proven competent in the past, simply because they do not fall under the operational umbrella of the aggregator.
Many employers now find themselves with a complex network of multiple vendors across multiple countries and are looking for a solution to manage them, but they are not looking for a new global payroll model that would end their relationship with these vendors. Instead, they are seeking a solution that allows them to see what is happening with these vendors, while managing and controlling them in a better way.
If you cannot adequately see what is happening with your global payroll in each individual country, this is an indication you need to seek out technology where you can integrate with a platform that gives you greater visibility and control with the kind of reporting you need to make informed decisions.
Some reporting tools out there were designed to meet some basic common needs, but they do not include the level of customization and flexibility required to tailor reports to the specific needs of an individual organization. If your current reporting does not adequately satisfy the needs, you need to look at more advanced reporting tools which help deliver visibility and control via self-serve reporting, real-time data and cost comparisons.
Global and local
Well established market research indicates that no single aggregator has the network reach or technology stack too deliver across all geographic locations so a combination of solutions is needed to unify multi-country payrolls. Global employers need every country payroll provider to be expert in-country so they can lean on the expertise and develop talent retaining compensation packages. There is therefore a constant need to have key preferred relationships with established expert providers in all the countries you operate a payroll. In order to manage these multiple relationships, it is best to use a technology stack or global payroll model that is capable of accommodating multiple vendors in a flexible and transparent manner.
The local country nuance can often turn out to be mission critical when it comes to global compliance- the industry is filled with cautionary tales of multinational companies who have suffered fines due to compliance failures resulting from a lack of specific and local expertise to guide them along the correct regulatory path.
To avoid complications with compliance and have a generally more streamlined and efficient global payroll process, it is essential to invest in technology that can deliver on a global standard while also being flexible enough to allow for local nuance. To run global payroll as a globally managed function, it requires a common standard or framework across countries. Local country, flexibility is needed to accommodate local country requirements. This needs to be managed with a technology stack capable of connecting this global structure with local country requirements in a sustainable and future proofed way.
Future trends
Another question worth asking is around the ability of your global payroll department to manage change and cope with the new demands being placed on payroll professionals in multi-national companies. MNC’s are scaling faster than ever before, expanding into new countries and markets, and competing for new hires, new customers, and market share. This creates a need to adopt payroll delivery models along with innovative technology stacks (preferably with a range of helpful digital tools) in response to these needs.
Is the traditional aggregator model best positioned to meet these needs if you don't have any technology currently in place? There are strong market indications that the current trends involve a shift away from traditional models as the limitations of legacy systems are pushing employers toward a new, more digitally focused offering. Progressive multi-national employers keen to future proof their operations, are on the hunt for software and technology stacks that can improve global payroll processing and also unify disparate groups including payroll, HR, and IT to create a cohesive global eco-system. Such innovative technology would meet the needs of the global employer while also having the added benefit of Introducing technology capable of connecting to other business critical departments.
Payslip
Our platform introduces standardized processes across all countries on your global payroll -If you have no technology at all in place, this is the ideal starting point for introducing technology that transforms the way you deliver global payroll. Our standardization playbook enables you to work with the same data across several different countries and we employ hyperautomation technology to automate any repeat processes and data inputs.
In addition, if you want to maintain relationships with a preferred vendor you can do so by integrating them with our platform. You can schedule and customize reporting so that reflects the data you wish to analyze -reports can be filtered by country, entity, employee and payroll element.
Our software allows you to take advantage of local expertise when it comes to payroll elements or compliance nuances but also creates a framework for the global delivery of payroll services within your organization. Visibility and control are supplied via a single dashboard view which also enables central governance. Our platform also enables you to develop global payroll processes that are repeatable and expandable when you need to scale into new countries.
This technology is about your company and your needs and is designed to empower global payroll professionals with digital tools that enable them to do their jobs in a faster, smarter and more efficient way. Talk to our team today they might integrate with the Payslip platform.