Time to Rethink Your Global Payroll Strategy: Part II
Apr 24, 2014
As mentioned in the first part of this series, multinational organizations face a complex set of challenges when compensating employees in different countries. However, more companies have recognized the benefit of utilizing a single global payroll platform. Such a solution can automate the payroll process for all locations, while eliminating the need for different bank accounts and multiple third party vendors or systems. As a result, companies can benefit from a more efficient payroll process that brings significant process improvements, mitigates security risk and results in lowered costs.
But, the benefits of a single global payroll platform don’t stop there. In addition to delivering timely, accurate and compliant payroll across their global operations, companies also benefit from:
- A customizable approach – Each company’s payroll program is different, so a one-size-fits-all approach won’t work for today’s multinationals. Companies will gain the most benefit when they can fully customize the solution to meet their unique requirements. For instance, the company may have employees in a location where payroll is managed self-sufficiently. In these cases, the company may want to leave that policy in place to avoid the costs of an unnecessary exchange rate.
- Accurate, automated forecasting – One of the biggest challenges for payroll and treasury departments is the ability to forecast the various exchange rates faced when compensating a global employee base. When leveraging a single payroll platform and the expert guidance of a global payroll solutions provider such as CloudPay, the company will benefit from a fully automated and tailored process that accounts for global specifications and enables them to forecast their payroll spend each pay period.
- Consistent Processes – With a single global payroll platform in place, organizations can ensure a more reliable and consistent approach to payroll. Rather than placing additional burden on internal resources, the company can rely on an automated system to calculate payroll in different regions. In addition, they benefit from making a single monetary transaction, compared to having to make a multitude of transactions from various bank accounts around the globe.
Payroll continues to be one of the most challenging aspects for the multi-national organization. But those that adopt a more modern approach, based on a single platform to make payments to employees around the world will gain a number of advantages. In addition to the improved clarity and transparency in their payroll processes that result from such a system, the company will also benefit from lower costs, reduced compliance risk and, overall, greater payroll success.