Special Report: Understanding Payroll Payments
Dec 18, 2018 | Tag: Strategy
This special report on Payments is a must-read for financial directors, HR decision-makers, and compliance professionals—as well as the payroll and payments teams serving multinational organizations and their workforces daily. The benefits of aligning payroll and payments solutions are far-reaching, and a deeper understanding of the relationship between the two functions is key to improving the pay cycle overall for organizations of all sizes around the world.
While the technology that enables workers, businesses, and consumers to be increasingly mobile and perpetually connected is a relatively recent development, its widespread availability and adoption have brought about the most significant shift in lifestyles and communication since the telephone.
In many aspects, the world is moving toward borderless interactions, particularly in business. However, there are distinct lingering challenges to this, along with hurdles for companies and workers to jump in the name of innovation. Two of these challenges, in particular, affect the universal business need to get employees paid: differing regional legislation and distinct financial markets.
Affecting everything from deduction amounts to data security, the widespread and sometimes conflicting legislative differences across countries are the reason why global payroll is so complex. Much of the expertise and detailed attention required to effectively process payrolls for one organization in multiple countries hangs on payroll professionals’ understanding of local regulations and expectations.
The variability among financial markets, including currencies, interest rates, and transfer options, have nowhere near the same impact on payroll. Payments, however, is entirely concerned with these issues.
The disconnect comes with the understanding that both payroll and payments are charged with paying employees. Payroll calculates what is owed to employees, tax offices, and government funds, and payments delivers money according to those calculations.
Put that way, payroll and payments seem to go hand in hand. Yet the two functions are typically separate within organizations, a fact that raises a key question: why?
As businesses move toward a more thoroughly integrated landscape for global services, related internal teams must re-examine their relationship, including Payroll and Payments. This comprehensive CloudPaper report explores the current division between these two essential functions and identifies opportunities to deepen the connection between them for the benefit of professionals, organizations, and employees.
Making the Connection
Like payroll, the process of paying workforce salaries and statutory payments to authorities requires very specific skills and expertise, and is largely out of view for most business stakeholders. And like payroll, the task of making payments becomes more complicated as companies expand into new locations and begin to need global service.
At surface level, it appears the similarities end there.
If payroll is a poorly understood back office function, payments is its rarely seen foreign cousin. They’re related, but speak a different language and have separate interests.
However, the same technological developments that boost speed, accuracy, and efficiency in payroll can be applied to payments. Just as aligning payroll with closely related yet distinct functions like human resources can significantly improve both areas, aligning payments with its equally pay-focused counterpart can advance the capabilities of both.
Unifying global payroll and payments solutions can deliver the process improvement and productivity boost that competitive multinationals seek, while delivering a more responsive and consistent employee experience worldwide.
The challenge lies in overcoming the divide in understanding that persists between the two functions, and communicating the benefits of alignment to the decision makers who may not even be aware that a divide exists. This requires payroll and payment teams to acknowledge what they have in common and identify the strengths each function brings to the pay table.
In this special report on Understanding Payroll Payments, you’ll improve your understanding of the crucial connection between the two functions by exploring three key areas:
- Challenges of maintaining divided functions
- Impacts of separate systems on organizations
- Solutions of an aligned global platform