Just a decade ago, it was almost unheard of for multinational companies to manage payroll from a single system. Instead, it was common for them to use multiple disparate systems to process payroll in multiple countries, making payroll data extremely difficult for decision-makers to retrieve and use.
Over the past ten years, global payroll has evolved into a streamlined system in which one or a small number of providers seamlessly manage payroll and its associated data in an easily accessible platform.
While many companies have waited on the sidelines to see if the new Global Managed Payroll model would work, some organizations tested the uncharted waters, and they earned a distinct advantage. Early adopters have greater visibility and a better understanding of how their companies work than their counterparts do.
Global Payroll Gives Companies an Edge
The biggest budget line item for most companies is payroll, so they need visibility into how payroll dollars are being spent to run their businesses effectively. Without a Global Managed Payroll system, they miss out on the strategic insights associated with this critical information.
To keep up with the progress of early adopters, companies that have been observing the evolution of global managed payroll from the sidelines must implement a global payroll solution as well. It will allow them to:
- Compare costs in one country versus another
- Track and maintain regulatory compliance in multiple countries with different laws and regulations
- Make sure workers in every country are paid correctly and on time
The sooner an organization adopts global managed payroll, the sooner it can obtain more valuable information that heightens its competitiveness.
Global Managed Payroll: The Time Is Now
Thanks to these early adopters, Global Managed Payroll is becoming a mainstream business practice that continues to expand as more companies see proof of its effectiveness. There are significant barriers to entering the global payroll provider market, so the available providers are large and boast demonstrated success. As a result, organizations are gaining confidence in the availability of quality global payroll service, and they are more in tune with the goals they hope to achieve by adopting it.
Organizations are getting on board with global payroll as they reinvest in HR applications. Their shift away from ERP systems to more mature, functionally rich SaaS products has been a catalyst for change in payroll. Like any initiative that aims to drive down costs or boost competitiveness, the sooner the new Global Managed Payroll model is implemented in a company, the sooner its benefits can be realized.
In the coming years, even more companies are likely to shift from using numerous different payroll vendors in many different countries to managing all payroll data and processes through one or two international providers. Some organizations may opt to hold off on implementing a global payroll solution, but they will not be as competitive in payroll or HR support as other
companies in their markets.
Which group will your organization be part of?