Business expansion into foreign fields can present a wealth of opportunities. However, as soon as you start employing abroad, international payroll processing becomes an important challenge that too many businesses struggle to overcome.
Domestically, getting payroll right should be a given, but as soon as you have a need for global payroll, be it one employee or 1,000 employees, or in one country or 10 countries, managing your international payroll processing becomes a complicated task. The complexity often results in failing processes. In the EY survey on global payroll, 85% of respondents said there was room for improvement in their payroll operations, yet too many companies continue with their inefficient global payroll model and fail to optimize their business expansion goals.
The Challenges Faced in Streamlining International Payroll Processing
Each country brings its own nuances and its own headaches. In its simplest of forms, failure to get the payroll processes right can lead to unhappy and unpaid employees. It also risks non-compliance, which can lead to heavy penalties damaging the company’s reputation.
At a basic level, there are the languages, time zones and cultures to master, making it difficult to manage a responsive global payroll from just one office. Then, there are the tax, employment and benefit laws that must be adhered to in a globally compliant manner. These laws get updated regularly and your business is pressed with the complex task of having to keep up to date on all the regulation changes.
Your company also needs to navigate the ever-mysterious and ever-changing international banking system. Processing rules and costs vary wildly from country to country, whilst tracking payments in multiple countries and languages requires expertise and technological intelligence.
Considering the potential damage to a company’s reputation, employee trust and audit risk, international payroll processing should be high on a company’s agenda but all too often isn’t. For many companies, global workforce management is carried out in-house. ERP (enterprise resource planning) solutions are largely conducted in-house, but they can be costly and inefficient to implement in countries where an organization has just a handful of employees.
Outsourcing is another option. Companies that cannot justify the large cost of an in-house ERP with a global payroll solution can instead outsource some, or all, of their payroll functions to local providers. Whilst these can lower costs, having to manage and administer all the compliance, data aggregation, technology, and security requires resources too. Global workforce management can be conducted on a multiple outsource solution, but the contracted service level agreements and the aggregation needed to centralize the global payroll functions, can often prove demanding and inefficient.
Simplifying International Payroll Processing Through One Single Provider
Managing global payroll from one single provider has many benefits. Advanced cloud technology coupled with complete knowledge of local regulations, streamline the entire global payroll process. A single global payroll company providing all your international payroll processing keeps your company up to date with all local laws and regulations, reducing risk exposure.
An expert global payroll provider offers full multinational payroll integration, implementing uniformed payroll management and reporting across whatever country your company employs in. With full transparency, you have the ability to monitor the control and consistency of your international payroll process to ensure optimized performance throughout. For your company, a global payroll services provider can provide the platform you need to analyse real-time interactive reporting on a global scale across all stages of your payroll process. Your headquartered management can have a current, complete, and consolidated snapshot of your global payroll data at the touch of a button.
The need for compliance in payroll data storage and management has never been more important since the introduction of GDPR regulation. Failure to be GDPR compliant can result in fines of up to 20 million euros, on top of the reputation damage non-compliance would inevitably bring. A global payroll provider would ensure that all GDPR regulations are met, as well as full compliance to other updated global and local regulations.
The technology behind a global payroll provider offers the opportunity to integrate with other HRIS, such as time and attendance systems and accounting software. The integrated global payroll platform provides a streamlined and flexible process which reduces manpower costs and improves efficiency at the same time.
Lastly, a benefit of using a global payroll provider for all your international payroll processing, is a thorough knowledge that only a local expert can deliver. Understanding the different nuances of each country, including holidays, can make a difference to the engagement levels of the employees. Remember, a happy workforce is a productive workforce and for your company to optimize its business expansion, you want your employees on board as much as possible.
Streamlining Made Eassy
Deciding how to manage your international payroll process is not to be taken it lightly. Regardless of country or workforce size, you need an international payroll process that guarantees compliance across borders, a centralized intelligent automated process, ease of use, and reporting insights that add value to your operation. Using a single global payroll service provider offers a customized and streamlined solution for all your international payroll process needs, freeing your time, energy and resources to focus on moving your company forward.