With the multinational payroll market set to be worth 4.8 billion by 2021, it’s clear that payroll is a vital part of organizations around the world. However, payroll is more than just people’s pay slips. Payroll data is evolving within multinational organizations into a powerful business tool that can provide vital business insights.
SD Worx’s recent survey of 1,500 respondents from nine European markets revealed that up to 87 percent of business leaders are utilizing employee data to inform their business decisions. The power of payroll is clear, so why are many organizations yet to unlock its insights? Unlocking this power can undeniably enhance decision making in the organization. The consequences of getting payroll wrong can impede business growth and bring with it the very real threat of fines and brand damage.
The survey also revealed that 67 percent of organizations believe that a multi-country payroll engine would bring significant benefits, recognizing it as a powerful tool. However, less than a third actually have a global payroll provider. For multinational organizations it’s often difficult to gather data without a global payroll provider, as they have employees dispersed around the globe and use multiple local providers. These organizations often have multiple disparate payroll systems in place, with no collated data and no clear insight into their employee attrition, engagement or retention.
The Benefits of International Payroll Service Providers
Outsourcing payroll to a global provider can immediately give employers insight into their workforce, and can reduce costly and time-consuming errors. The payroll industry is always changing, and new laws and legislation — such as the European Union’s recent General Data Protection Regulation — can completely change how the whole organization operates. It’s unsurprising that it can be hard for the HR and payroll departments to keep up.
With one contract and partnership with an international payroll service provider, an organization can be confident that its payroll is compliant with local and international laws, unhindered by the various differences that could catch them out. Additionally, harnessing HR and payroll technology that can automate mundane back-office payroll tasks reduces human error on small but nonetheless important tasks.
Utilizing this powerful technology only further enhances the humans in the payroll department, as they are freed from administrative tasks and have more time to focus on adding value.
Ultimately, having one system that manages the global payroll — alongside automating some tasks — will undoubtedly increase the job satisfaction of the HR and payroll teams, and will reduce the risk of human error. Combining the data from numerous countries into one easy and compatible system and database will mean that the HR and payroll departments no longer have to worry about understanding different rules in multiple regions around the world.
For one multinational organization, the HR and payroll team reduced their payroll providers from 47 local systems to a single, international payroll provider, saving both time and money and introducing a gold standard of accuracy for the entire organization.
Payroll Data Is Not to Be Ignored
Outsourcing payroll to a global provider is the first step toward unlocking its power. Beyond the direct and immediate impact on payroll, using an international payroll service provider can allow organizations to more easily collate and analyze the data, and teams can gain better — and clearer — insights.
Multiple spreadsheets are often hard to decipher, but with one single dashboard the executive community can utilize the data and make informed business decisions. This is crucial in an industry in which 40 percent of HR and payroll professionals reported that it was “difficult” or “very difficult” to provide HR and payroll data to business leaders. In addition, the greatest challenges they faced included multiple systems (45 percent) and compliance (40 percent), followed by confusing data (31 percent). So the benefits that outsourcing to a global provider can bring are clear.
In today’s industry, payroll is no longer static data to be ignored. When utilized correctly it can play a powerful and strategic role within the executive community of multinational organizations. Yet the dynamic payroll industry is still developing and wider adoption of one global payroll system can only enhance the insights provided.
A global payroll system provides agility, presence and scalability, with instant access to automatic software upgrades and mobile and cloud technology, ensuring that the organization is not left behind its competition. If you don’t upgrade, your competition will. So what are you waiting for?
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