How tech innovation is shaping the future of global payroll.
Global business expansion is an exciting, yet challenging endeavour. Each new office in a new country presents a unique set of legislative requirements, further complicated by unfamiliar languages, cultures and customs. In the past, international companies had to establish in-country payroll teams and enlist the help of local service providers to get their new offices off the ground. This created a large administrative headache: HR had to manage complex employee payroll needs and procurement had to source trusted suppliers in each country.
Thanks to innovative technological developments, companies can now manage their payroll for various locations from one home-base. They no longer need to set-up in-country payroll teams – nor do they need to manage contracts with multiple service providers in each country of operation. Cloud software enables multinationals to consolidate their global payroll needs and manage their processes from one location far more efficiently.
Easy access to information, less admin
International companies are constantly trying to stay one step ahead of their competitors. One way to do this is to reduce the amount of time valuable employees spend on laborious, administrative tasks. From a payroll point of view, one global service provider managed by one team is significantly more efficient than many teams managing lots of small service contracts all over the world.
However, this is not the only reason for businesses to use a global payroll platform. The benefits of an automated cloud-based payroll system are numerous. It also gives businesses better access to critical information. Regardless of the payroll manager’s actual location, they can log in and pull all the data they need in real-time, from any device at any time.
Instead of receiving information in bits and pieces from each individual office, a centralised system provides a holistic view of the company at all times. This enables business leaders to make strategic decisions faster. Speed is integral to staying competitive and relevant. Cloud-based payroll software can provide in-depth insights into market trends, stay up-to-date on all local legislative requirements and automate various functions such as reporting.
Thanks to the availability of cloud software, payroll teams can be based anywhere in the world. Two colleagues, working in different countries, can work together on a project in real-time. There’s no need to send emails back and forth, nor will work get duplicated or lost in the process. This enhanced collaboration creates an agile working environment that is far more responsive and productive.
With cloud-based payroll software, a business can improve their efficiencies even further and integrate their global payroll with other business systems – for example, accounting.
Contrary to what many companies may think, cloud technologies are very secure; only authorised users can access specific information. What’s more, a global payroll provider that is ISO27001 certified has the security knowledge and expertise to help keep corporate networks safe.
How to move to global payroll
To successfully implement a global payroll system, a business needs to focus on the following three areas:
If a company’s payroll is already on the cloud, then the business is well-placed to move to a global payroll platform. If not, the company will need to update its software. This is a daunting prospect but with the right provider, it can be done seamlessly and with little to no disruption.
Each country presents its own set of rules and regulations. When choosing a global payroll system, a company must check that the provider covers the countries that are relevant to its business. Compliance in all countries of operation is crucial. Only a global payroll provider with the right cross-border multi-country capabilities can ensure this.
Employees are not always enthusiastic about change. To get the new payroll system up and running as quickly as possible, a business needs to employ a change management programme to ensure all workers are on board with the new system. You also need to train your staff before implementing the new system so they know how to operate it from day one.
A global payroll system that sits on the cloud is the most efficient solution for international companies managing multiple offices around the world. With access to real-time data from any location, businesses can operate with greater intelligence and speed. This keeps them competitive and relevant – and helps them maintain a strong position in the market.
By Bruce van Wyk, Director, PaySpace
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