A global payroll transformation project can result in hugely positive changes to the way in which you deliver global payroll at a multinational, but it would be dismissive to suggest that it is an easy undertaking. Like any project, it will take time and effort and face multiple challenges along the way- but like all worthwhile projects, this time and effort is needed in order to introduce the correct solutions and improve a process.
At Payslip, we talk to global payroll professionals all the time and none of them have ever regretted being involved in a digital transformation project that introduced innovative tools and work processes to help them to deliver global payroll in a faster, better and more efficient way. In fact, most of them would have liked to have undertaken such a project several years ago and avoided many of the difficulties they have faced during that period.
In this article, we will take a look at some of the skills and resources needed by team members involved in a global payroll transformation project as well as some things they can do to make the project run smoother.
Stakeholder Management
You will save yourself a lot of time and energy if you approach all relevant stakeholders very early in the process - some will need to sign off and approve financing and investment, others will just need to be kept informed of decisions and progress. If a large percentage of the relevant people are in the loop right from the start, the project can gain traction and momentum. It will start with a global payroll manager who will outline and identify the reasons for the transformation project, this person will state the business case for investment and what they need to make it happen. Likely individuals involved in the sign off and approval process for the project include the HR manager, the CFO, senior compliance figures and possibly the CIO.
All of these people will have an interest in how global payroll is delivered for the next 10 years, each for different reasons perhaps. The CFO will be interested in technology that can future proof global payroll ,deliver efficiency and return on investment while also helping to improve the financial stability of the multinational overall.
The CIO will be interested in how global payroll handles big data, data security and protection along with how this project fits in with the wider business strategy. Senior figures in compliance will be interested in anything that can help them be compliant on an international level -this is of particular importance when multinationals are scaling quickly into new regions and territories. Any process or technology that improves the transfer of data and tightens information security is likely to be welcomed by these individuals.
Assemble a Team
You will need a project lead- this person should ideally be invested in global payroll and have a clear vision of what the future process will look like. This person needs to fully understand the challenges facing the global payroll team today and the manner in which technology can meet these challenges. They need to understand the current process, the global payroll market, the wider company objectives and the major hurdles that need to be overcome in the day to day calculating, processing and delivery of multi country global payroll.
The team will also need to consist of several individuals with good analysis skills and an ability to identify what an effective global payroll process looks like and the steps they could take to get there. They will need to be able to identify current gaps in the process, areas where existing technology is no longer fit for purpose as well as data accuracy and compliance risks.
Useful skills needed by this team include:
- Analysis and data interpretation
- Understanding of innovative or next generation technology
- Payroll vendor capability analysis
- Project management and gap analysis
- Global payroll calculation and delivery experience
Current and Future Needs
It is always useful to develop a road map of where you want to be, and this usually starts with mapping out the process as it currently stands. This will help ensure that everybody is on the same page and each individual involved in the project knows how global payroll is delivered now along with the ideal and optimized way to deliver a global payroll in the future. This way you have your starting point and your finishing point, you can then identify what success looks like and begin to fill in the gaps.
Each member of the team is then able to explain the project, why it is happening and what benefits it will deliver both to the global payroll department and the company overall. Focusing on a few key questions can be really helpful when creating this road map -such questions may include:
- What global payroll model do we currently use?
- Does it deliver value for us now and will it be sufficient in the future?
- How many employees do we need to pay now?
- How many employees do we expect to recruit in the next three years?
- In what countries are these employees likely to be located?
- Do we need local subject matter experts for payroll calculation and international compliance?
- Do we have the knowledge, expertise and experience in our team to deliver effective global payroll?
- Are we compliant in each country that we operate in? How do we currently measure and prove this?
- What are our global payroll continuity measures? Can we deliver in the event of an emergency or business disruption?
- How advanced and innovative is our technology in comparison to competitors?
- Do our data inputs, calculations and validations meet data privacy and information security measures?
- What are our reporting capabilities? Is our payroll reporting global and consolidated? How easy is it to produce, customize and filter these reports?
- What is our oversight, control and visibility like for our global payroll?
Technology Knowledge
This may be more of an awareness than an actual skill, but being familiar with global payroll technology stack options is absolutely essential to ensuring your transformation project is moving in the correct direction. Technology is advancing all the time and a lot of global payroll professionals are only familiar with the legacy technology they use on the daily basis.
They may be familiar with what their current technology cannot deliver but are unfamiliar with the innovative technology that exists out there to help them. It is crucial to do your research and look at how other companies are delivering global payroll. You need a technology stack that will integrate with your current processes while simultaneously moving your delivery of global payroll to another level of efficiency. This stack ideally needs to be deployed in the cloud where access to procedural documents can be granted and tasks can be allocated and distributed across a geo-dispersed global payroll workforce.
To transform global payroll, you need to introduce both standardization and automation. There is a requirement to standardize the data and processes so that they are consistent across all your global payroll countries. There is also a need to introduce automation where possible to speed up the input, calculation and validation of global payroll data across multiple systems- this will save global payroll professionals a lot of time and reduce the likelihood of human error.
A transformation of global payroll is greatly helped by digital tools -digitizing your global payroll calendar will help you control and track payroll delivery and also help meet local and international compliance requirements. Digital reporting tools will result in more comprehensive and consolidated global reporting, allowing global payroll professionals and business leaders to see at a glance what global payroll is costing them and do country or pay run element comparisons. These digital reports can be scheduled and customized to suit various reporting needs.
This kind of digital technology will introduce a level of operational efficiency and streamlining of processes that will take your global payroll to the next level -transforming it from a manual entry focused series of back-office tasks to an automated and standardized digital process that focuses on speed, efficiency and accuracy while delivering high level visibility and control over global payroll.
Take that first step
A global payroll transformation project is about digitizing an entire department and supplying it with the innovative tools needed to elevate it to another level. The business case is there as almost everybody accepts that global payroll is a business-critical function, crucial to employee morale and business reputation. Other departments have successfully transformed and there is no reason why global payroll should be left behind, particularly now that cloud-based payroll software has advanced significantly. Time and money can be saved, efficiencies can be introduced, control and oversight can be improved, data entry and transfers can be more secure and tighter controls around compliance can be introduced.
All of this is good for global payroll professionals as well as the multinational as a whole. The Payslip team have a lot of experience talking to global payroll professionals who are taking those first, tentative steps towards the transformation project and seeking information and guidance around what it could look like. Talk to our team today for an informal conversation around what can be achieved in a short space of time.