Fifty-eight percent of companies don’t offer employees tools to understand their pay, 97 percent still process payroll every month and more than 50 percent are still not convinced payroll should support employee well-being.
This is the theme of the CIPP report, Payslips Statistics Report 2024, which unpacks how payroll is essential to the financial well-being of the business and the employee. The report found that companies want to improve employee experiences, which is a key driver for payroll transformation.
But companies lack visibility and control over their data. Many still rely on outdated payroll management and delivery methods.
The challenge is to find an intelligent route toward employee and business satisfaction while ensuring payroll is compliant with regulatory pressures through the use of tools and technologies designed to reduce the risk of mistakes.
After all, errors in payroll take time to fix and directly impact employee well-being.
Solutions for Global Payroll Challenges
- Make your payroll process a high priority.
- Consider creating a dedicated payroll department.
- Be rigorous in your search for the right payroll platform for your company.
Prioritize Your Payroll Processes
Your payroll is more than just global or local or a cycle of payments. It’s a strategic investment into your business’s liquidity and provides invaluable visibility into cash flow, finances and growth.
Managing it globally requires companies to embed clearly defined processes before setting digital foot in another country.
Very few international payroll solutions are designed to cater to the complexity of managing global payroll mandates, regulations and procedures. Whether your talent lives in Australia, Africa, Europe or Asia, your payroll has to comprehensively mimic the regulations outlined by their country of residence.
Prioritizing your payroll processes allows you to streamline systems and manage regulations more efficiently. It also ensures standardization. When all of your processes are aligned, there’s less margin for error and more control over how you can manage your payroll locally and globally.
It may sound like an obvious first step, but many companies are battling to find balance within their payroll processes. Struggling with legacy systems, manual processes, disconnected systems, fractured data and aging approaches, payroll can be fragmented and complex at the best of times.
Taking a meticulous and methodical approach to global payroll means prioritizing processes so you can optimize your approach to compliance.
Invest in a Dedicated Payroll Department
Mastering the complexities of international payments, taxes, benefits packages, regulations and admin is crucial to ensure your global workforce is paid accurately and on time.
These are the fundamental aspects of global payroll compliance. These compliance metrics are not static, but constantly evolving. Staying updated is key to maintaining compliance.
On a regular basis.
Suppose you have employees in three different countries. In that case, you need to stay abreast of regulatory changes in every one of those countries weekly, if not daily, to ensure your next payroll is compliant.
For many companies, this means having a dedicated department or legislation division focused on ensuring that national and international payroll procedures are compliant and up-to-date. These teams sit on the right websites, read the right publications, use the right legal sources and stay on top of the rules rigorously.
For most companies, however, the reality is that investing in a dedicated division isn’t possible. It’s a high expense for relatively low returns. As a result, companies risk failing to meet compliance standards and accruing hefty fines.
This is also why the global payroll provider market has grown exponentially. Companies have seen the gap and are creating solutions designed to fill it. Unfortunately, this leads to another key challenge: finding the right fit.
Find the Right Platform for Your Unique Needs
The global payroll market is highly competitive, making the search for the right solution a challenge.
Which platform will allow for your payroll teams to become more strategic? How will they empower payroll to remain ahead of the regulatory curve? What services and solutions does it offer that allow for you to woo top talent from around the world? How does this platform enhance the ways in which you do business and build your business?
Your global payroll platform must help you to radically reinvent your talent matrix while ensuring your payroll teams are efficient, accurate and compliant. These are not qualities imbued in every global payroll solution, so make sure you opt for a platform that supports your bold talent acquisition strategies and global payroll requirements on every level.
Ask these five questions when evaluating potential partners to ensure you select a reliable partner.
- What is your global reach and expertise?
- How will you ensure compliance with local laws?
- Can I see a demo of your technology stack?
- How will you handle data security and confidentiality?
- What level of customer support do you provide?
Approach Global Payroll Compliance Confidently
Achieving global payroll compliance requires a strategic approach, investing in the right expertise and finding the right technology partner.
As companies continue to navigate the complexities of managing a global workforce, the right global payroll partner will provide the expertise, security and support to confidently manage global payroll and foster a healthy and loyal workforce.
Choosing the right global payroll partner is a critical decision, and it will impact your organization’s efficiency, compliance, reputation and workforce environment. Make sure to take your time, ask the right questions, find the right fit and face global payroll compliance confidently.
