Over the years, a huge number of MNCs have opted for integrated global payroll solutions that cater aggregation and integration of their payroll platforms across numerous countries.
Such solutions assist in streamlining as well as standardizing payroll procedure, cater better controls and visibility over the local payroll execution & assistance to simplify data integration and reporting with the third party systems.
Listed below are six crucial reasons regarding the importance of global payroll software solutions implementation:
1. Rollout of the shared service structure
Several businesses have started centralizing their back offices into shared services also known as COE or Centre of Excellence structure that generally align the same functions and roles in central organizational structure.
As per this model, earlier decentralized payroll functions are now rolling up under a single central management structure.
Mostly such centralization is considered to go hand in hand along with co locating the team in regional or global hubs.
Note that real operational synergies are usually not attained by just redrawing a business reporting line or through co locating resources.
If you are one of those looking to attain advantages of shared service structure, ensure to enable shared service organization along with standardized processes and tools.
It calls for a rollout of a global payroll solution that endows shared services teams with a constant medium of working & constant tools to get their duties/work performed efficiently.
2. Global HR solution implementation
In total eight out of the ten clients or the prospect with whom communication gets conducted either have implemented the solution or are just in the process of doing so or are planning to implement the global HR solution.
Note that implementing this procedure helps to unite all the processes in a single central system.
But owing to the local issues and lack of a single global payroll system, payroll is generally laid outside the global HR system and continues to function in numerous other distinct local systems.
Similarly, there is a huge requirement to integrate data flows between the local payroll system and the global HR system – the HR information/data required to feed into the payroll solution & vice versa.
To eliminate the integration of the global HR system with various distinct individual local payroll systems, implementation of integrated global payroll system that is good at aggregating all local data in a single central system can drastically simplify one’s life.
3. Process automation
Do you have any idea about the number of countries where the payroll processing is carried on still through spreadsheets and emails with numerous data entry and even manual interference? Just face it as many payroll operations still today are into painful manual interventions and are less tech savvy.
Fact that maximum payroll providers have grown because outsourcers or the service bureaus that originally relied on removing staff instead of outdated technology in case of issues is just a part of the reason why the payroll platform/industry still functions in this manner.
If you are also one of those who operate with zero central global payroll solution, you require relying on local vendors for picking up slack & investing in automation & technology.
However, note that it is guaranteed to be an unhurriedly slow way to begin modern tools & efficiency into payroll operations.
More efficient and faster way to do so is to come up with a central global payroll solution, which brings in process automation tools & smart technology that can be applied to various local payroll operations in a constant and scalable manner.
4. Swift international expansion
When businesses expand into new entities at a swiftly rapid rate, it comes across to be a challenge for the team involved in payroll to remain up to speed up & put in place local support processes for running payroll for newly hired local staff.
Initially, you require to recognize the reliable local payroll providers and then define/state your service needs, perform vendor selection procedure, troubleshoot and implement new solutions & get used to the manner the recent provider functions.
Faster and efficient way for scaling up your payroll back office as a move towards global expansion is to thoroughly work with a single global partner that can assist you in listed ways:
- Recognize a set of local partners, which are pre-vetted and select the correct partner as per requirement.
- For you to streamline the manner you operate with local payroll providers for aligning with the remaining of the global payroll process models. Here the thought is to create a repeatable, cookie cutter manner of including new countries just by plugging in a reliable proven global payroll system.
The global system will also endow you with central visibility on how your payroll operations are working & central reporting is performing across all staff and their payroll info in a single central platform.
This is something, which is highly valuable when adding new employees each week & to get real time data or view in times of management requirement. One can even conduct headcount and calculate the labor cost that is evolving.
In any payroll platform, the term compliance is an important term. Particularly when one is into operating across several distinct countries.
It usually gets hard to stay up with the same level accompanied by changing needs in the local legislation.
Compliance obligations are continuously viewing enhanced demand and we viewed an enhanced need for more detailed real-time data and reporting.
Thus, with a global payroll solution one can keep track of all such local compliance obligations & review as well as validate on how to meet such obligations.
Also, it assists in pulling together info/data needs for reporting swiftly in an automated way. Moreover, a proper global payroll system can even help in enforcement of constant processes & put in place the technology enabled controls for the protection of employees info/data as well as to ensure compliance.
6. Payroll leakage
While we do not discuss this much, misdemeanors and irregularities are all common in the payroll arena. Whether it is just an individual staff gaming the entire system or just someone on the payroll team systematically defrauding the organization just by forging the data.
In all such cases it is evident that payroll leakage is taking place almost regularly in various businesses. Implementing a global payroll solution helps establish a thoroughly strong central oversight & even controls that can lower the risk of such frauds or irregularities.
DynaPay, advanced global HR & Payroll with very high capabilities Solution works inside Microsoft Dynamics 365 Business Central.
Dynamics Business Solutions (DBS) is certified Microsoft Dynamics partner in UAE, we take pride in our ability to develop and deploy the right business solution that matches global client’s requirements.