Guide to Global Payroll Management - 2020 - 12-2

Guide to Global Payroll Management
Many global enterprises rely on a complex, ever-changing mix of third-party providers,
aggregators, and internal HR and payroll systems. Simply using one global payroll vendor
for all locations would be the ideal. However, it is not cost-effective to deploy a full payroll
solution for those long-tail countries that have small worker populations.

What is the right global payroll strategy then? Global payroll will always be local, detailed,
and complex, so there is no one-size-fits-all answer. It's most efficient and cost-effective to
employ a mix of local payroll providers and aggregators around the globe, depending on the
number of workers per country. Cloud technology has the ability to simplify global payroll
management by providing a single platform from which to manage these third-party payroll
providers while providing end users with a consistent experience.
Let's take a closer look at how technology plays a key role in elevating payroll from a backoffice business function to a strategic asset that brings real-time global payroll insight to
business leaders for high impact business decisions.

Leading Global Payroll Technology Changes the Game
A proven payroll technology best practice today is to deploy a single human capital
management (HCM) system in the cloud that supports a single source of truth for HR data as
well as multi-country payrolls. Whether these are managed on one platform and/or with
multiple providers, data is ultimately driven from a single HCM through a standard user
interface to anywhere in the world. This strategy drives one source of truth for global
companies.
Companies following this best practice find that having all of their HR and payroll data
together in the cloud makes it accessible in real time in a way that is simply not possible if
this data lived in separate systems. This approach simplifies the business processes related
to changes in benefits, terminations, and life events as well as employee self-service
capabilities such as time off requests, payment elections, and viewing of payslips and tax
documents online. It also helps reduce costs and increase accuracy by eliminating dual
entry of worker and payroll data.
Option 1:

Global organizations typically use an in-house payroll solution, a global payroll service
provider or a third-party in-country payroll provider. But most often they use a
combination of all of these solutions to help ensure compliance with local regulations. The
solution mix depends on populations in each country, in-country system & resource
availability and long-term business strategy. Overall, all global organizations find that it is
impossible to achieve one source of truth without integrating third-party payroll data with
global HCM data. Fortunately, leading payroll cloud technology solves this problem by
providing an advanced connector to match and synchronize global data with local data.

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Guide to Global Payroll Management - 2020

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