Last month we published an article featuring some key findings from a recent survey undertaken by Deloitte and sponsored by The American Payroll Association, which focused on key global payroll services benchmarks.
The results were revealing, and it is always important to develop awareness around what leaders in the payroll industry are sharing about the challenges they experience with day-to-day global payroll delivery.
For our second article on the survey, we switch focus to what these leaders consider to be the biggest payroll service delivery and processing challenges they face today. The statistic below confirms what we have believed for a long time- that technology limitations are holding global payroll services back.
“67% of those surveyed stated that technology limitations are their biggest payroll service delivery and processing challenge”
Deloitte Payroll Benchmarking Trends, September 2020
67% Is a very convincing statistic and one that leaves very little room for doubt. It is now abundantly clear the technology limitations need to be addressed across global payroll and human resource departments at multinational companies around the world. In this article, we will take a closer look at what this statistic means for the industry and what can be done to address this technology challenge.
Technology limitations block progress
For this particular survey question, technology limitations were revealed to be the most pressing service delivery issue for global employers and small businesses. Organization and structure, change management, and resource capacity were all a very distant second to technology limitations. It is very clear that the technology stacks currently being deployed are no longer fit to manage the complex environment of global payroll delivery.
The reality of course is that most technology stacks were not designed to deal with this level of complexity in payroll services. Global payroll has evolved and changed over the years and the rapid scaling of multinational companies into new territories and regions has brought with it a sizable increase in employee and payroll data. All of this data needs to be managed with visibility and control for the effective delivery of day-to-day global payroll services. This is quite challenging to achieve given the nature of global payroll models in practice today mean that multiple local country vendors are using disparate systems to send differently formatted data to global employers.
Non standardized data arriving from multiple vendors who operate different systems presents a significant management challenge. Employers need assistance in the form of technology to securely transfer this data and also to format and standardize it for effective payroll processing.
A technology platform with innovative digital tools is required to integrate these disparate systems and standardize the data in a way that provides much tighter controls over the data and much clearer visibility around what is happening with global payroll across several countries.
Innovative payroll software technology can be an enabler and driver of progress - but legacy systems that cannot meet payroll needs are a blocker to progress. Therefore, they must be removed or integrated with a more advanced form of technology that is fit for purpose and can deliver the workforce management that is now needed in global payroll. It is no longer acceptable to operate with payroll software that is failing to empower global payroll professionals to do their jobs and is instead participating in the very complexity it is supposed to be resolving.
Technology first. Process second
It is becoming clearer that many global employers (including small businesses) are attempting to design global payroll delivery processes around technology that is not fit for purpose. They're looking at the processes they want in place and seeing how they can adapt them to the technology.
This practice is not resulting in the levels of efficiency they need to deliver successful global payroll. The mistake they are making is putting the process before technology. A better way to do it is to consider making technology the main driver of the delivery process - technology first and process second. Global employers need to build their processes around the capabilities of their technology stack or platform.
This switches the emphasis towards the technology and places critical importance on investing in the right level of technology. This may be a new approach but it has become very clear that a new solution is needed, and global employers need to adapt the way they think about payroll delivery, especially if they want to onboard multiple countries onto their payroll books.
Payroll software and digital tools
Adopting a technology first approach involves working with a technology specialist who truly understand the challenges and needs of a global employer when it comes to multi country global payroll solutions.
An employer can then invest in technology that is flexible and adaptable and specifically designed to solve global payroll management problems. If they can see how a technology solution meets needs, addresses problems and improves overall operational excellence - then there is a clear business case for investing in this new technology.
This new technology should be a cloud-based platform, capable of integrating with all of the relevant players in the ecosystem: HR services systems, HCM systems, finance and accounting software, IT and any other relevant business unit.
It should also feature a range of innovative and easy to use digital tools which improved the speed and accuracy of day-to-day global payroll processing. Things like digital global calendars, payroll system alerts, document repositories and data sharing facilities can prove to be a major advantage when it comes to day to day delivery of global payroll.
Helping HR Services and Employees
Better payroll services technology also enables HR services departments to become more efficient and improve the way they deliver global payroll to employees. In some companies, especially small businesses, the human resources department often has to run payroll using dated accounting software that has limited functionality.
Outsourcing payroll and HR services is simply not an option at small businesses- they have to work hard to deliver full-service payroll every pay period without the aid of innovative tools so there is a real need for a technology solution. Pay stubs and employee self-service facilities are rarely considered necessary or cost effective in smaller sized companies. But small business owners will always be interested to learn about any payroll or HR tools that can help them deliver payroll in a better and more streamlined way.
Payslip technology for global payroll
Payslip provides Automation & Integration technology that delivers standardized Global Payroll Management to multinational employers. Payslip technology integrates with HCM & Accounting/ERP systems: automating payroll processes, standardizing payroll data and consolidating payroll reporting.
Payslip Is the payroll solution needed by companies experiencing payroll service and processing challenges due to the limitations up their current technology stack. Companies who choose to integrate with the Payslip platform immediately move to a global payroll delivery model that has technology as the driver of the process.
Payroll process workflows leverage the innovative digital tools available on our platform, and global payroll professionals can benefit from a range of features designed to help them do their jobs in a faster and better way.
The technology provides central management control to multi-national employers while the integration solution enables structured and automated data flows across HR systems, service providers and human capital management systems. This is a solution to the common challenge of multi-system complexity in global payroll processing.
The technology solves clear and present global payroll management problems in day-to-day payroll operations while also enabling payroll process scalability and flexibility to support business growth.
Time saving automation becomes part of the global payroll process and all manual, repeatable tasks are automated. Payroll information, data and processes are standardized across countries and this paves the way for consolidated, multi country reporting for detailed insight, analysis and decision making.
This is technology that recognizes the current global payroll landscape and comes with digital tools designed to solve specific functionality problems. Payslip is a comprehensive global payroll management platform, meeting unserved market needs, reducing costs and boosting productivity & efficiency.