Is standardization the solution to payroll complexity?
It’s no secret that global payroll processes have been outdated and complex for some time. In fact, the United States ranks among the top 11 countries with the most complex payroll systems, alongside the United Kingdom, France, Italy, Belgium, and more. Old-fashioned manual payroll data processes often result in duplication between multiple internal and external systems. The lack of standardized processes inevitably means that each country in which a company provides payroll has a different structure and format for calculating payroll data, so there is no single way of working. This, along with siled teams, creates barriers within the payroll department that only increase both complexity and poor visibility.
Payroll systems that are not standardized do not support the growth and scalability of a business. A business may be ready to grow and hire quickly, but the complexity of different countries creates barriers that can be both costly and time-consuming. Compliance issues can also impact data security and protected information – if a payroll service can’t see what’s happening in every country, it can’t be compliant. The lack of standardized processes across countries also forces them to endure time-consuming manual processes, where the right technology can help remove tedious (but important!) tasks from their workload.
Standardizing payroll data and processes across countries could put an end to the complexities mentioned above. When a standardized payroll process is in place, every payroll professional is able to operate with the same payroll data and processes, and work in a standardized way. If a payroll professional working in one country unexpectedly needs to take over the duties of a colleague in another country, the same policies and procedures of the home country will still be followed. This allows payroll professionals to take on responsibilities without wasting time. A unique way of working makes payroll faster, more efficient and more manageable than ever.
Hybrid and remote work has changed the way global payroll works. Companies in different countries require employers to work with local payroll providers to ensure new hires are paid correctly and on time. However, this can increase compliance complexity, data security, and cybersecurity issues if a company does not have a standardized payroll process. A single payroll process across a company also allows for more flexibility while adding new local payroll providers and easily integrating them onto the standardized platform. Without standardization, payroll experts have to familiarize themselves with a new system, new country data, different formats, a currency and a new language. The flexibility that standardized processes provide benefits both seasoned and inexperienced payroll professionals, as it eases the transition and reduces the time it takes to get up to speed.
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Standardized data also allows for comprehensive and detailed reporting when comparing national costs often requested by business leaders. This allows employers to read the story behind global payroll data and helps make decisions for new investments or changes across the world. Auditors can see what is happening in each country with digital and transparent audit trails organized in the same format. These reports are quick to extract and are available globally and locally through the use of standardized data across countries.
Standardized payroll processes generate a way to manage and deliver multi-country payroll that applies to all countries, territories and geographies, eliminating complexities and providing a more efficient way to deliver and manage multi-country payroll. country. If your company doesn’t currently use standardized data and processes, consider implementing technology to manage all payroll data in one place.
Fidelma McGuirk, CEO and founder of Payslip.