HRO Today April 2014 - 25

Payroll
services operations. Despite differences in language,
culture, and regulations across the business, the client is
presented a snapshot of total payroll. " By consolidating
payroll data and normalizing it, it thus becomes more
understandable to the people in charge of global payroll
for decision-making purposes, " Paterson explains.
Jon Ziglar, executive vice president and managing director,
international, at Ceridian, says the Minneapolis-based
global payroll solutions provider has seen a huge increase
in demand for single-vendor global payroll services.
" While the rest of HCM (human capital management)
has been global for years now, payroll-because it is so
transactional-was still stuck in the Stone Age, " Ziglar
explains. " There were so many fields to fill in to maintain
regulatory compliance in each market-all those different
labor rules and hours tied to contract in each market-that
it stymied globalization efforts. Because you couldn't see
the payroll data, you couldn't do the analytics. "
As other parts of HR became global, the demand
intensified for payroll to follow suit. " Companies wanted
the efficiencies of running payroll on a single platform by
a single provider taking care of all the integration issues, "
says Custers. " The business case for global payroll was
never the challenge-it was the complexity involved that
was problematical. Companies often struggled and failed
to reach the finish line, which is why a trusted third-party
advisor is so important in this journey. "
This complexity is gradually being weaned out of the
global payroll process. Assuming a provider can digitize
disparate payroll data, collect and aggregate this data in
the cloud, and then apply big data algorithms to these
aggregations, client demands are being addressed.
Weinstein, for instance, says ADP's global payroll business
is one of the fastest growing parts of the firm. Even midsize
companies are lining up as clients. " We've got many large
multinational clients, but are now finding that companies
with 50 to 100 employees around the world also have a
significant need for our services, " he says.
He cites the example of a client in New England that is
hiring a small number of employees in nearly every country
in Europe. " They have no idea where to send the payroll
taxes, much less whether to withhold the tax, " he says.
" Other midsize clients are moving into Canada and Mexico,
Complexity is slowly being weaned
out of the global payroll process.
Assuming a provider can digitize
disparate payroll data, collect and
aggregate this data in the cloud,
then apply big data algorithms to
these aggregations, client demands
are being addressed.
or spreading their wings overseas, and want to be sure
they're compliant. At the same time, they want to know
if they're driving performance with the right incentive
compensation elements. That's where we come in. "
Despite its promise, payroll data globalization is
progressing slowly for many clients, as well as their service
providers. " Change doesn't happen overnight, not when a
company says it has 65 separate payroll suppliers and wants
to ensure compliance tomorrow, " Sullivan says. " While you
can make sure their people are getting paid, it takes time
to ensure data quality, eliminate payroll fraud, increase
controls to comply with data protection laws, and so on.
Once that is done, only then can you gain visibility into the
data for decision-making purposes. "
Ziglar agrees the trek from merely paying employees to
learning from this data takes time. " The important thing is
that companies are beginning to understand that payroll is
of critical strategic performance; after all, it's the number
one expense they have, " he says. " By focusing on this cost
and how and where it is spent, you can learn all sorts of
great things from it. But, it doesn't truly become strategic
until you can get visibility. That wasn't possible a few years
ago. It is now. "
Russ Banham can be reached at www.russbanham.com
APRIL 2014 | www.hrotoday.com
[25]
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HRO Today April 2014

Table of Contents for the Digital Edition of HRO Today April 2014

HRO Today April 2014 - 1
HRO Today April 2014 - 2
HRO Today April 2014 - 3
HRO Today April 2014 - 4
HRO Today April 2014 - 5
HRO Today April 2014 - 6
HRO Today April 2014 - 7
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