From integration to robotics to analytics, it seems global payroll providers today are talking about a different function than the one we knew ten years ago. It’s true: payroll technology has taken off, and today’s leading solutions are working with top HR and finance systems to ensure multinational enterprises have the best data and insights at hand when strategizing for success.
Organizations who haven’t undergone a payroll transformation may be wondering where to begin—and exactly what the benefits of implementing a new global solution are. The good news is that there are clear steps to take toward modernizing your system, beginning with assessing the current state of your payroll affairs.
Global Payroll Assessment
Completing an objective evaluation of the performance of your current payroll process can help you clarify what’s working well and which areas can be improved. By now you know that more strategic payroll, powered by greater centralization and visibility, can decrease errors and costs while improving efficiency and productivity. So how do you get there from where you are?
CloudPay came together with leading BPO analyst firm NelsonHall to pool their deep knowledge and data around the common challenges involved in managing global payroll and develop a tool to help organizations assess their payroll performance. By combining NelsonHall’s evidence-based methodology with CloudPay’s rich data on multinational payroll, the two organizations developed an objective assessment tool to help companies take a more proactive approach to payroll.
Once you have established the maturity of your organization’s payroll function, you’re ready to consider whether payroll transformation is right for your enterprise. While the assessment may have taken only a few minutes online, the next few steps are more involved—but deliver even greater insights into what’s possible with your payroll.
1. Identify the true costs of your payroll
The real price of payroll includes many elements that aren’t listed in a service contract or measured by SLAs. The cost of lengthy processing windows, poor quality data, or overburdened staff, for example, aren’t quantified on your payroll bill yet have critical influence over the efficiency and overall performance of your payroll function. To properly consider the cost of switching solutions, you first need to look beyond the known costs of your payroll processing to identify the hidden costs impacting your bottom line. For help identifying the true price of your payroll, download this report on The Hidden Costs of Payroll Fragmentation.
2. Build a successful business case
Recognizing the value and benefits of a unified global payroll solution is becoming easier and easier for payroll and HR professionals today. The hard part remains convincing higher-ups that their investment in switching solutions will pay off against the upfront costs and challenges involved in changing enterprise technology. A benefits-driven business case for payroll transformation can help secure buy-in by outlining the true costs of your existing system, explaining your requirements for a modern solution, and detailing the benefits of making the change. For guidance on making a case that will be heard, check out this report on Building a Business Case for a Global Payroll Solution.
3. Create a better payroll RFP
Once you’ve determined your payroll opportunity and existing payroll costs, and secured buy-in for improving the payroll function, you’re ready to identify potential solutions to meet your needs and elicit bids from vendors. Enter the Request For Proposal, or RFP, a document that specifies what your organization is looking for and establishes criteria for evaluating proposals. That description makes RFPs sound simple, but many are incredibly, needlessly complex. To start your payroll transformation on the right foot, check out our four-part guide to Building a Successful Global Payroll RFP. Then, download our easy-to-use Global Payroll RFP Template when you’re ready to build your own payroll RFP.