When a growing business embarks on a global expansion plan, it has to consider numerous challenges. New markets present lucrative opportunities. However, each new territory is also home to a unique set of legislative requirements. This is often complicated even further by a variety of different languages, customs and cultures.
To navigate these challenges successfully, international companies typically enlist the help of local service providers in each country of operation. Some locations are particularly tricky and in these instances, HR may also recruit in-country payroll teams to ensure compliance. This is a time-consuming process that involves complex employee payroll and multiple service contracts.
Fortunately, multinationals no longer need to endure this administrative headache. Innovative technological developments are reshaping how these businesses manage their global payroll needs. Cloud software enables companies with multiple offices around the world to consolidate their payroll, reduce their suppliers and manage their processes from one location far more efficiently. Here’s how cloud technology is changing payroll management across the globe.
More access, less admin
Competition is tough in the global business arena. A good way to keep two or three steps ahead of the pack is for a company to reduces its administrative workload, freeing up staff for more strategic work like compliance, and improve employee access to information.
Of course, not all administration is superfluous – a lot of it is very necessary to keep a business running smoothly. However, one team managing one global payroll service provider is far more efficient than many teams managing lots of small service contracts all over the world.
An automated cloud-based global payroll system has many benefits over and above taking care of repetitive, time-consuming work. It also keeps people connected to critical company information from anywhere in the world. Regardless of the payroll manager’s actual location, they can log in and pull all the data they need in real-time, from any device at any time.A centralised, cloud-based payroll platform provides a holistic view of the company at all times.Click To Tweet
A centralised, cloud-based payroll platform provides a holistic view of the company at all times. With fast, easy access to this solid bank of real-time information, business leaders can make strategic decisions quickly. This speed is key to keeping their companies competitive.
Enhanced collaboration and security
Cloud-based software also enables teams around the world work better together. Instead of using email to send important documents and updates back and forth two colleagues, based in different countries, can work together on a project in real-time. This enhanced collaboration prevents work from being duplicated or lost – and creates an agile working environment that is far more responsive and productive.
Companies can improve collaboration and efficiency even further by integrating their cloud-based global payroll with their accounting, HR and other business systems.
Companies can improve collaboration and efficiency even further by integrating their cloud-based global payroll with their accounting, HR and other business systems. Nowadays, the closer these business divisions work together the better. Payroll, in particular, benefits from knowing not just how much an employee should be paid – but where a specific staff member is in their employment journey, if they’ve recently been promoted and if they’ve met their KPIs. With this information at hand, they can make informed recommendations with regards to salary increases and bonuses.
What’s more, if they work with a global payroll provider that is ISO27001 certified, multinationals can rest assured that their corporate network is safe. Cloud technologies are much more secure than many people think. However, this does require high-level security knowledge and encryption expertise over and above the standard security measures.
How to implement a global payroll system
To fully benefit from a cloud-based global payroll platform, businesses need to carefully consider the following three areas before making the move.
1. Current technology
If a company’s existing payroll is already on the cloud, then the business will be able to globalise its payroll function without much fuss. If not, the company will need to update its software which can be a daunting prospect for some businesses. However, with the help of the right provider, and with the right technology onboard, it can be done with minimal disruptions.
A multinational business has to be compliant in all countries in which it operates. When choosing a global payroll provider, a company must check that its platform covers all the territories that are relevant to the business. The right multi-country, cross-border solution is crucial to avoid severe penalties or fines for non-compliance.
3. Change management
Change is not easy for people and employees often baulk at adopting new technologies. A comprehensive change management programme can help a business get their new payroll system up and running as quickly as possible. It’s incredibly important that all workers are trained on the new system and once implemented, can operate it comfortably.
A global payroll system that sits on the cloud can help multinationals run their offices around the world with greater efficiency, intelligence and speed. This helps them maintain a strong market position and achieve ambitious growth objectives.