Global payroll simply put into context means management of a company’s entire payroll function from one capital location without having to outsource services country by country. The global payroll functions in the hands of one service provider, thus enabling its clients to reduce paperwork. Aside from this, it also reduces the time and effort required for managing multiple service providers across different countries. Information management is also more effective and streamlined with a global payroll system.
When selecting Global payroll providers for your multinational business always look for companies with a proven track record, which can also provide their service to each and every country you are operating in.
Simplifying Global Payroll Providers and Management
Huge corporates and even small and medium enterprises are adopting global payroll services. This is mostly because of the fact that it helps the parent company avoid any administrative headaches it might encounter while managing payroll.
Here are three simple tips for firms looking to hire global payroll providers to handle their international payroll functions:
1. Select a single service provider for local and international payroll management
Traditionally, companies have relied on their own payroll structure also for global payroll, and this has led to many employees claiming that there was room for improvement in many aspects.
Selecting a single service provider is beneficial in many ways:
• It will reduce complexities in paperwork and management.
• The service provided will improve as the payroll partner is specialized in this field.
• They can easily pay remote employees.
• Global and regional compliance.
• A single service provider will be beneficial for better reporting and also improve the overall transparency in transactions.
You can also leverage on the service provider and need not worry about delays or compliance issues with the foreign country.
2. Select the payroll system that is configurable to work with the existing systems
Most multi-national companies have their own payroll management system. When selecting a service provider, ensure that their software is competent to work with an existing framework like an HRIS system so that data sharing between both parties would become easy. This would also mean employee information is shared easily across both partners. Such a situation would help both parties in benchmarking performance and recoding data in a similar format.
3. Select the payroll system that streamlines operations and simplifies reporting
The main reason behind hiring global payroll providers is to reduce the burden payroll services have on the resident HR team which will give them time for more important activities. With the implementation of a global payroll system, the overall operations should become streamlining for the parent company.
When selecting external parties for outsourcing, timely reporting is always a worry, especially if you have more than three payroll providers. Look for a single partner who would greatly help in providing accurate, simplified and timely reports.
New technology helps in payroll management
With many businesses adopting technologies and several other competencies to increase the effectiveness of payroll management, companies should also look out for partners that implement these technologies. Finally, select a payroll partner with vast experience in managing companies like yours so the process will be smooth from day 1.
