Multinational companies everywhere have a strong desire to grow and scale into new markets in order to maximize opportunities and revenue flows. It is the nature of business, that as soon as a modest level of success has been achieved, strong ambition takes over and this quickly translates into a mandate to scale into new countries and territories.
Part of this is an attempt to quickly maximize any success being experienced in the market, another part of it is really about getting there first. Companies know that if they do not act fast and scale with agility and decisiveness, their competitors simply will. There is a need to make a bold statement and grow an organization in line with company objectives.
All growth can lead to growing pains and increased levels of complexity-there is simply a lot more to manage when a country enters new markets and countries, grows their workforce and expands their product range. A key area where business growth can lead to a level of complexity is global payroll. A critical component for growth is talent and managing this significant business investment means focusing on global payroll operations-new staff located in new countries need to be paid and there is a requirement to engage with local country experts and payroll vendors to help make this happen.
In this article, we will explain why multi-vendor payroll strategies are on the rise, the advantages they bring to an organization and why a technology platform for global payroll operations is needed to manage all of these vendors and efficiently execute a growth agenda
Local expertise is a must have
Rapid levels of international scaling can result in hundreds and even thousands of new employees needing to be paid accurately and on time every month. When an organization moves at speed into a new country, it often finds itself in unfamiliar legislative territory when it comes to employment law and nuanced local payroll. Help is at hand in the form of various local country payroll providers, who have the local expertise and payroll functionality structures in place to provide an essential payroll service to a global employer and facilitate their business strategy and growth ambitions.
Every country is different and there will be different local laws, languages, currencies and cultural nuances to deal with. This can be a real headache for a global employer who is unfamiliar with the new country. Engaging with a local expert and payroll vendor is therefore not only desirable, in most cases it is simply essential for getting the job done.
New employees in the new countries are paid, local laws are adhered to, and a local country vendor has the on the ground knowledge to keep the employer on the correct track in terms of local compliance. All of this represents a very valuable service to a global employer who can look on a local country partner as a facilitator and local compliance expert. So, it is not surprising then, to find global employers adopting a multi-vendor strategy and working with local country providers to ensure that they have access to the right level of expertise that will enable them to hit the ground running in the new countries they scale into. More and more are turning to the multi-vendor marketplace for outsourcing payroll services.
Legacy limitations
Another reason that multivendor strategies are on the rise is that many global employers find that their current global payroll operating models are ill equipped or no longer sufficient to help them grow with the speed, agility and technology responsiveness they desire.
There is a new and increasing appetite to work under a multi country vendor model that allows them to tap into local expertise so that they can advance into a new country market in a quicker and more efficient way. Companies with ambition are keen to hit the ground running in new territories and execute high growth strategies. To make this happen, they need local expertise on the ground and a technology platform that is designed to support growth.
But how do you manage it all?
Pursuing and multivendor global payroll strategy is the right thing to do if you are a high growth organization with strong ambitions to reach into new markets and territories as quickly as possible.
Before rushing straight out and talking to local providers, it is best to consider long term management. More local providers mean more people and technology to manage-this can quickly spiral into a complex and very challenging ecosystem if you don’t have a plan in place to manage it all.
A technology platform to manage a strong multi-vendor global payroll strategy will prove to be a very wise investment in the long term. It will also prove to be a further facilitator of efficient growth, especially if you can get all your local country payroll vendors onto a single platform and introduce repeatable processes which can be duplicated and then automated anytime you need to onboard a new vendor when entering into a new country. A digital platform that can help with vendor management will truly enable you for future growth and also ensure that as a global employer, you have full control over implementing your global payroll operating model and the vendor relationships you choose to execute it.
Manage it with Payslip- your growth partner
The Payslip global payroll control platform was designed to support organizations who choose to operate a multi-vendor global payroll strategy. This fully digitized, secure cloud platform is also ideal for high growth organizations who are looking to scale efficiently and require a global payroll technology partner who can move at speed and support their efficient growth objectives.
On the Payslip platform, you can onboard several new local vendors and advance into multiple different countries in a very short space of time. The platform is vendor agnostic which puts the global employer in complete control-they can bring any preferred vendors with them onto the platform while also being able to swap out and change vendors anytime they want. The digital audit trails and smart tools available on the platform make it easy to prove international compliance and allow payroll management teams to centrally manage their global payroll processing function. The platform also introduces automation and standardization to streamline payroll processes.
Local country payroll vendors are hooked on to the saas platform and global payroll managers can see, control and manage everything from a single platform with a condensed dashboard view all their payroll countries. The platform is a digital technology solution designed specifically to handle global payroll challenges such as maintaining visibility and control over an ever-broadening network of local country vendors.
if your organization is growing at great speed and you are finding it difficult to apply structure an organization to your multi country vendor network, then talk to our team today.
For information on the Payslip Platform contact us today.