HRO Today Global Winter 2016 - 39

Global Payroll
Compliance also remains a top vendor-selection criterion,
especially in multi-country contracts, along with quality
of service, high payroll accuracy, and timeliness. Also,
keep an eye on the following pair of vendor challenges:
* " Payroll changes need to be applied according to the
local legislation for payroll compliance, so if the HR
technology vendor is not concerned with local payroll
compliance, then this could lead to a suboptimal
solution. "
* " Vendors may be challenged to provide multi-country
payroll where there is no multi-country local presence:
Understanding local compliance issues and obtaining
local country buy-in can be a challenge for vendors
when the provider does not have a local presence. "
Accenture on what
clients will need in 2016
The same challenges faced in 2015 will be present in
2016. As clients demand increases in the market, a
sense of urgency to find solutions will heighten. As we
talk with clients, here are some of the areas they are
focused on:
* A multi-country solution that offers access to
transition operational-excellence methodologies and
managed payroll processing services from partners.
* An established PMO to coordinate and operate a
unified governance model, including: managed payroll
processing services from partners, service delivery
and management, internal control and compliance,
process/continuous improvement, and change
management.
* An extended data enablement team to manage data
templates, uploads, and controls for payroll fixed
and variable data, and to perform data controls and
validations.
* Multiple challenges for employee queries: Query
resolution at first level when possible, ticket-routing
to responsible payroll support contact team, and ticket
status tracking.
Jason Davenport is Chief Operating Ofÿ cer for Capita's HR
solutions Division at Capita and non-executive director for
Chartered Institute of Payroll Professionals.
" Compliance is incredibly important right across the globe, "
Davenport says. " That's where the outsource providers can
really help to challenge each business it serves to be better.
Because of working to standards they have to adhere with
in the industries that they serve. If you think of a globalized
project with the HR systems, that are available. In my
experience the single vendor doesn't actually exist with a
single contract. Where there's an aggregated model with
smaller third party vendors being managed by an overall
outsourced arrangement. That actually is the most favoured
model and probably the most current model. And that's a
real beneÿ t to business because the overall main contract is
managed by a single vendor and that vendor will challenge
the third party to raise their standards, and in raising their
standards and meeting the appropriate ISO standards, this
in turn beneÿ ts the third party and the broader clients it
may already serve. And that in turn is a beneÿ t for the client
in terms of quality and management. "
Hurst of Ceridian says the biggest challenge for 2016
will be HR and payroll professionals' ability to manage
compliance, especially on a global scale. These include
city-based regulations in the U.S., such as the Retail
Workers Bill of Rights in San Francisco, as well as big
changes across the globe. For example, Brazil's eSocial
project is consolidating numerous federal agencies to
which payroll professionals have to report.
'They are consolidating six to eight different federal
agencies that payroll professionals have to report out
to into one, " explains Hurst. " But the requirements
for this new reporting regime are very onerous on a
company. Spain has something similar going on, where
the government is really taking a strong approach to
what it wants to see out of a payroll and payroll data
from companies in order to be able to operate within
compliance in the Spanish market. "
In Brazil's case, the consolidation means that depending
on the speciÿ cs, companies have to report between 100
to 2,000 data elements to the government on a monthly
basis. And there's always the threat of audits.
Hurst adds, " Governments are getting more strict in terms
WINTER 2016 | www.hroglobal.com
[39]
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HRO Today Global Winter 2016

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