Without an effective global payroll process in place, a company can lose out on the war for talent.
People will flock to companies that can set up payroll and pay them quicker. Overall, companies need to avoid scenarios where it would take months to set up the administrative work, banking information, and all things needed to pay people in that country.
This is a hard scenario, as it’s new territory with a different culture and banking system. Those with innovative and agile technology will have an advantage as they are quickly able to onboard the local country providers. It’s essential to have an innovative payroll technology platform when expanding your global business.
When payroll data is centrally located on a single platform and standardized for global payroll delivery, the process can be duplicated across new countries relatively quickly.
Automation can also help repeat any recurring processes. Global payroll professionals are better prepared to handle new incoming countries because the standardization means that the process of payroll delivery will be the same for every new country added to the system. Employers can build global payroll process scalability and flexibility, which will further support organic and acquired growth.
Digital transformation enables companies to better manage the complexity of a multi-vendor and multi-system environment. Having a system in place where this is all organized on a single platform allows for easy management. Digital transformation will also increase data security and information security - this is now a legal and regulatory requirement.
There are strong compliance fines for companies with poor data practices, and digital transformation brings payroll away from emails and spreadsheets, which are not secure. Instead, this information is stored in the cloud environment, which limits data access to authorized and approved users only, and these users can share sensitive payroll data and employee information in a much more secure way.
Speed and efficiency within the digital payroll platform also enable interconnected departments to share data in a faster and more efficient way via platform integrations. For example, the HR department can share data with the departments that handle finance and global payroll.
