As a senior sales executive for Immedis, I have had the pleasure of talking to many payroll and HR professionals. It’s been an illuminating experience. For the most, we only think about payroll when something goes wrong, and suddenly, your paycheck is lighter than it should be. However, the elaborate machine working away to ensure that this does not happen is pretty impressive. Payroll is a complex entity that operates under constant pressure always to deliver payroll on time and accurately.
The changing face of payroll
As technology has swept in, changing everything in its path, payroll did seem like that one body able to withstand the force of changes. However, that is all changing. In recent years there has been a shift, albeit slowly in some sectors, towards moving to a consolidated payroll model. However, I have encountered some misapprehensions about just what this means. When talking to customers, one of the ways I explain it is that consolidating payroll is more than simply reducing the number of cooks in the kitchen; it is replacing the many with one incredibly powerful cook.
When we talk about centralizing payroll and generating this single and central source of truth, what does this mean for an organization?
Here’s what that translates to in business terms:
7 benefits of a consolidated global payroll
#1 Minimizes the number of vendors a company needs for payroll
Combining disparate payroll systems onto one platform not only gets rid of multiple points of contact, but it also eliminates potential language barriers or time differences, which results in faster response times.
Getting data from numerous sources means payroll must piece together their reports manually. This is extremely time consuming and error-prone. The more human touches, the greater the possibility of errors interfering with the integrity of your data.
In addition, typically, each vendor will operate with a different technology stack that delivers datasets in diverse formats. Again, more time is spent collating and making the reports uniform. Otherwise, the company never benefits from a holistic view.
However, a consolidated global payroll removes these hurdles and provides the company with aggregated oversight.
#2 Provides the most current and up to date data
Manually piecing together the data from multiple systems is time-consuming. It also means that payroll is never working off the most current information. As a result, it is hard to effectively strategize because your trend analysis is outdated, making forecasting inaccurate. In today’s fast-paced global economy, the speed of change is swift. Therefore, it’s vital that business leaders must have real-time analytics.
#3 Facilitates integration with HCM systems
Sometimes companies will try to facilitate an integration by adding application programming interface (APIs) into their back-office software. This solution is cumbersome, and the likelihood of each payroll system having the same API capabilities are slim. However, we know that integrations are a key piece to configuring a NextGen solution. It eliminates the need to manually upload information, input the same data from one system into another (double entries), and removes the possible human error. It also frees up your team’s time to focus on more strategic business-building initiatives.
#4 Allows for accurate comparisons
Having a consolidated system managing all your jurisdictions also means each country will be measured by the same datasets, formats, and algorithms, giving an organization a true apple to apple comparison. Leveraging this data, they can analyze and determine how best to manage any weaknesses and capitalize on their strengths.
#5 Simplifies multi-currency payments
Payroll’s goal is to pay people on time and accurately, wherever they are. When you have employees in several different countries, the challenge is to pay each and comply with all local and employee laws. Historically, this meant hiring more vendors, each responsible for paying the employees within their jurisdiction. As a result, there is little oversight, and the information for each area is siloed.
A global payroll platform brings all this information together, providing the opportunity for more extensive reporting and deeper insights. The Immedis Platform facilitates multiple currencies, tax and social security deductions, calculations, and advice. We can make sure that your employees pay the correct taxes, receive the proper benefits and pay, regardless of their location.
#6 Supports compliance
Every country has different employment laws, and to ensure organizations comply with these various regulations, it requires them to work with multiple vendors. Again, this means numerous contact points, different operating hours, and sometimes understanding who oversees what becomes murky and leaves the client exposed and at risk of non-compliance.
However, by leveraging a global payroll provider with the expertise to ensure you meet all the legislative requirements, an organization reduces the opportunity for error and receives the assurance that they are in compliance.
#7 Manage payments to employees on contract to another jurisdiction
Finally, most multinational companies struggle with the task of managing employees working on assignments overseas. My colleague Christine Kiely gives readers a comprehensive guide to this practice, and I highly recommend taking the time to better understand the complexities of shadow payroll. Suffice to say, it is a complex process and can leave companies open to fines and reputational damage if not handled correctly.
However, a consolidated global payroll solution like the Immedis Platform provides employers with the expertise and capabilities to ensure employees will be paid on time and accurately, regardless of where they are located.
Consolidating your global payroll offers organizations capabilities and functions that help to manage and simplify the complexities of doing business on a global scale. And that’s why I want companies to recognize it for what it can do for them and how it can transform one of the most fundamental and important aspects of a business.
Why not see for yourself and take a demo today.