Although payroll is one of the more fundamental business needs, our understanding of the function and its implications remains minimal at best. In fact, many business leaders rarely consider payroll beyond the basic requirement of paying employees, failing to realize the strategic value of this core function, which often represents the largest cost center of a business and claims on average as much as 60% of annual revenue spend.
The challenges to understanding payroll are amplified when companies must consider multiple international and domestic locations, and begin looking into global solutions. What is it about global payroll that leaves people blank? Perhaps the answer lies in first helping people understand what global payroll is.
Essentially, global payroll is the management of an organization’s entire payroll function for all locations via one system. From the early days of exploring foreign markets to today’s globalized economy, companies headquartered in one location have had to compensate employees working in another. And while the legalities and logistics of multiple payroll locations may be straightforward in some cases, the majority pose complex challenges to the payroll function and the organization at large, including conflicting regulations, data restrictions, benefits discrepancies, and much more.
These wide-ranging challenges are just one reason why the details of managing global payroll can vary significantly across providers. There are plenty of ways to deliver compensation to employees on a specified date. However, new technology and cloud-based platforms are expanding the remit of payroll teams well beyond getting people paid. Today’s leading payroll platforms are elevating the function in terms of both efficiency and relevance, and in turn are empowering the enterprises who use them in new and exciting ways.