In recent years, forward-looking organizations have been demanding a truly global solution as their leadership became increasingly dissatisfied with having different payroll providers in each country, or a cobbled-together hybrid approach.
That model had to change. To remain competitive, these organizations sought a single solution to manage payroll across multiple countries—with all of their unique taxes, labor laws and other requirements.
Technological advancements have made this solution possible. The advent of Software-as-a-Service (SaaS) technology eliminates the need for single-instance, on-premise payroll software or ERP modules. A single cloud-based payroll solution can encompass payroll for all employees in every country, and can be customized to handle a wide range of national and regional requirements. It can also be implemented across a distributed organization with minimal hassle and time.
It’s a New Era for Global Payroll
Global companies no longer need to maintain large instances of ERP modules. Today, they can purchase a mature SaaS product that’s far more functionally rich than anything available just five years ago. They can offload the burden of multiple currencies, languages, tax structures and time zones. Best of all, they gain the ability to report on payroll information globally, and seamlessly integrate that data with existing human resources information systems (HRIS).
Early Adopters Are Already Seeing the Benefits of Global Payroll
Global payroll‘s early adopters have tended to be organizations in technology fields. They are accustomed to having data available and having access to reports on a global basis. They expect integration, and they’re comfortable with outsourcing. For these early adopters and many who followed in their footsteps, a unified global payroll solution in a shared services environment makes perfect sense.
Early adopters are realizing a number of competitive advantages from global managed payroll, including:
- Simplified management with one point of contact, one set of service level agreements (SLAs) and one set of payroll key performance indicators (KPIs)
- Easy access to vital payroll data, such as compliance and status
- Visibility into total workforce costs (compensation plus benefits plus other employment-related costs)
- The ability to compare costs country-to-country and region-to-region
- Deeper understanding of the entire organization
- Cost predictability and lower payroll ownership costs
With a SaaS global payroll solution, there’s one monthly cost. Contrast that against the complexity of spending on payroll bureaus, sustaining internal payroll teams, covering IT costs for on-premise software as well as IT resources to manage upgrades and maintain integrations.
Why Act Now?
If payroll is working well across your organization and you have no need to report on payroll information, waiting for greater market maturity may be a viable option. But most organizations do have to report on payroll, perhaps because it’s their biggest budget line item or perhaps to help them meet their compliance requirements. The sooner you adopt global managed payroll, the sooner you can turn payroll information into business value.
If your business strategy over the next five years involves moving core functions to the cloud and/or centralizing HR services, you should at least consider a global payroll option. SafeGuard World International was one of the first global payroll pioneers and today, enjoys being a market leader in this space.