Everyone wants to reduce business operating costs and preferably without reducing headcount. However, there are other ways to look for cost savings, many of which will decrease your spending and improve efficiencies and performance.
The start of a new year is the ideal time to evaluate current processes to optimize output. As you review your payroll operations, keep the following in mind:
HR and payroll professionals spend much of their day handling manual data manipulation, performing data transfers, and reviews. These are all time-intensive tasks. However, if your global payroll is integrated with your HCM, these actions are automated. Your payroll team can now use their time on higher value activities including workforce planning and analytics.
Global organizations that operate across multiple countries are exposed to currency fluctuations. On investigation, some CFOs find that they are being charged up to 200 basis points higher. What are you paying in FX charges?
Payments to employees and regulators are usually managed by the vendor. What are you paying for this service? Is there another way to execute these payments?
Companies that snowball or through acquisition often end up operating with multiple legal entities. These are costly to manage. Other times companies will use professional employer organizations (PEOs), which can be expensive. I also know of situations when the business processes employees through their payroll but still use PEOs in the same country. Consolidating these entities can reduce the overheads associated with managing global payroll.
How much does it cost you to manage your global payrolls? If you don’t know the answer offhand, how long will it take you to find out? While a single global provider provides greater transparency into global payroll costs, having multiple vendors globally makes that problematic. Each vendor has a different charging model, with surprise charges for system upgrades making it impossible to budget for. In turn, this means that CFOs have a greater challenge in fully understanding the total cost of managing global payroll.
Payroll reruns are costly. How many payroll reruns are run per year? Why are payroll reruns happening? Are your payroll vendors committing to first time right payroll?
Immedis can support you in your efforts to reduce costs. We can conduct a complimentary ROI evaluation and demonstrate the potential savings if you consolidate your global payroll. Our industry experts will also work with you to build a business case for change.