One of the most common objections I hear when speaking with HR, Finance, or payroll professionals is that convincing executives to invest money into a global payroll solution is no small task. Mostly I hear that these people would rather not spend more money on what is already one of any business’s highest operating costs. However, such thinking is quite short-sighted. What this view misses is that while global payroll serves a critical function, it also has the potential to be a corporate superpower. Especially if it is consolidated into one system and then integrated into the organization’s HCM and finance systems.
We know that currently, many global payroll professionals are operating at least 7 disparate systems and that those working these multiple platforms recognize the inherent problems this kind of structure presents. But when we take these seven separate, siloed operations and centralize them into one source of truth, we unleash the true power of payroll as a driving force of the organization’s growth strategy.
Let’s examine how the consolidation and integration of payroll improve business performance.
Delivers superior reporting & analytics for better forecasting and workforce planning
One of the most common challenges faced by HR, payroll, and finance teams is the amount of effort and time it can take to pull together information.
Why does this continue to be an issue for the largest single expense most companies face?
Everything from the data’s quality, the number of disparate systems, the difficulty of collecting and cleansing the data and collating the data into one currency. Usually, all of this is a manual process. It can take days and even weeks to pull together reports using multiple spreadsheets and complicated formulas to collate the information into a single report. However, when all this data is instantly available, this challenge is eliminated. Now, you can get reports instantaneously, but you can also get better reports – actionable – insights into payroll costs in each location. The Immedis Platform allows users to view high-level items such as Gross to Net, employer costs, and gender balance.
Establishes channels to improve information exchange
How often have people complained that sometimes the right hand doesn’t know what the left hand is doing? When organizations expand and spread across numerous countries and continents, this is ever more possible. Integrating payroll with your HCM and finance systems automatically facilitates greater connectivity between these business facets. Now people have insight into different functions, and as a result, can easily share more information that was previously difficult, costly, and time-consuming to access.
Generates a single source of truth, reducing the likelihood of errors
With multiple systems in place, you are likely the victim of repetitive manual entries, workarounds, and unnecessary duplication. This impacts the timeliness of the information as well as accuracy. By contrast, an integrated system provides a single set of up-to-date data, enabling information to flow through your organization more freely – any changes or updates need to be made once and are then consistent for all areas.
Increases employee engagement through reductions in error
When payroll is integrated with your HCM and finance systems, the instances of employees being paid incorrectly is significantly reduced. For example, we achieve a 99.98% accuracy rating for all key deliverables across global payroll. Most employees see getting paid correctly as the first step on the ladder towards employee satisfaction, and ultimately, this will assist with employee engagement. If employees know their pay is accurate, it builds trust and enables them to focus their time on their job rather than worrying about whether or not their company is making the correct tax deductions. This also frees up HR and payroll people to talk to employees about other aspects of their employment, such as retirement or financial wellness.
Facilitates compliance lessening the risk of fines or penalties
Having an integrated global payroll solution means your data accuracy is improved, making it much easier to stay compliant. Sensitive employee information can be updated securely in one system. Your mind can be put at ease, especially when it comes to in-country regulations. Ultimately this means organizations can avoid unnecessary fines and are confident in their data security and compliance. It provides a solid foundation for process improvement, which can scale as your business grows.
Offers organizations a way to manage risk and plan
If global payroll is consolidated, it can generate real-time payroll processing, affording companies a way to solve problems as they arise. They can also leverage predictive analytics to identify future risks by identifying business strengths and weaknesses. For example, with access to past payroll data, managers can analyze and highlight overarching trends and make better long-term strategies. Variance reporting compares your planned outcomes with the actual results and flags any extreme variances based on predetermined filters. This allows for greater business insights and understanding.
The Immedis Platform lets you know what you’re spending across all countries and jurisdictions, tax years, pay periods, all of which can be displayed using unified currencies or local currencies. By reviewing fluctuations and trends, you can make the necessary adjustments with agility and accuracy. Armed with this data, companies are better placed to make informed decisions around critical issues and thereby reduces any associated risks.
We know that as each year passes, organizations will face fresh new challenges and changes. If 2020 has taught us anything, it is that nothing stays the same. As we strive to deliver a touchless end to end global payroll framework for our customers, we are alwa
See for yourself – get a demo of our platform and discover how a consolidated and integrated payroll platform will equip your organization with the functions and capabilities to succeed.