On April 16, we hosted a panel of payroll experts to provide insight into the state of global payroll. They dove into the trends shaping global payroll, the challenges organizations face, the advantages of a global payroll program, and insights from the payroll director at FICO.
Hosted by Patrick Bryden, senior manager of alliances partner marketing for OneSource Virtual, the webinar also featured:
- Phil O’Reilly, Director of Payroll for EMEA, OneSource Virtual
- Neil Carpenter, EVP of Alliance and Solution Consulting, Safeguard Global
- David Hudson, VP of Product Strategy, Workday
In this blog, we highlight key takeaways from the discussion. Watch the full webinar on demand.
Top five trends shaping global payroll
Our speakers started off by examining the top five trends that are shaping global payroll. Paying close attention to these trends can be the difference between getting ahead and falling behind.
- The emphasis on integrated systems. COVID-19 propelled payroll discussions into boardrooms, emphasizing the need for integrated systems to centralize and standardize data and pay. With data's increasing value, organizations are shifting away from spreadsheets towards streamlined payroll solutions.
- AI-driven decision making. Historically manual and process-driven, payroll is evolving with AI-driven solutions, aiming to become a strategic partner to organizations. By automating routine processes, AI reduces risk and provides real-time analytics and insights into payroll data and trends.
- The importance of compliance. Accurate reporting and fair treatment of employees are paramount, especially with the continuous influx of new regulations. Organizations are increasingly looking to automate systems and work with payroll outsourcing providers to maintain compliance, alleviating the stress of sleepless nights wondering about compliance status.
- Enabling faster pay cycles. More organizations are investing in faster pay cycles, leveraging AI to streamline processes and provide employees with faster access to their earned wages. With employees seeking greater flexibility, organizations are moving towards flexible pay cycles as an expected benefit.
- Collaborative employee solutions. Payroll is increasingly elevated to a strategic level within businesses, focusing less on transactions and more on strategic initiatives. Recognizing that employees are their biggest asset, businesses are striving to provide a unified experience, offering real-time insights and self-access solutions to enhance engagement and simplify processes.
To learn more about these trends, be sure to check out the full webinar on-demand.
The challenges of running global payroll
Global payroll management has become increasingly complex in today's interconnected business landscape. As organizations expand their operations across borders, they encounter a myriad of challenges in managing payroll processes efficiently and compliantly.
Technology challenges
In many organizations, outdated payroll systems are rife with manual processes that are time-consuming and prone to errors. Moreover, the lack of scalability and integration across disparate systems exacerbates these challenges, leading to inefficiencies and inaccuracies.
Compliance risks loom large, as regulations vary widely across regions, making it difficult to ensure adherence to local tax laws and reporting requirements. Additionally, the absence of robust reporting and analytics capabilities hinders decision-making and strategic planning.
People challenges
Global payroll introduces complexities beyond technology, affecting talent acquisition and retention efforts. Organizations struggle to attract and retain skilled labor due to uncertainties surrounding payroll operations. Moreover, the absence of contingency plans leaves businesses vulnerable to disruptions such as natural disasters, geopolitical events, or simply employees deciding to leave the organization.
Limited organizational agility further compounds these challenges, making it difficult for companies to adapt to changing market dynamics. Additionally, many organizations struggle to find in-house expertise to manage global payroll in the first place, posing significant hurdles to getting an effective program up and running.
Compliance challenges
Managing payroll compliance on a global scale can be extremely intricate. Data integration and standardization issues hinder efforts to consolidate payroll processes and ensure consistency across regions.
Increased local payroll complexity further complicates matters, as organizations grapple with varying regulations and tax requirements. Moreover, concerns regarding data security and privacy loom large, with potential risks of regulatory fines and reputational damage in case of non-compliance.
The advantages of a global payroll program
Once you understand the challenges, you can start to build a global payroll program that not only solves them but turns them into advantages. With a comprehensive global payroll program, businesses can simplify operations, mitigate risks, and drive strategic growth.
Technology advantages
Modernizing payroll systems with automation offers various benefits, from streamlining processes to reducing errors and enhancing efficiency. A centralized system provides a single source of truth for payroll data, ensuring accuracy and consistency across your organization.
Built-in compliance features mitigate risks and ensure adherence to regulatory requirements, while advanced analytics capabilities offer valuable insights for decision-making and strategic planning.
People advantages
Implementing a robust global payroll program enhances talent acquisition and retention efforts for the payroll team and the general workforce. These optimized payroll processes will keep your payroll team engaged and make the department more enticing to prospective payroll talent. Additionally, ensuring timely payments, a unified employee experience, and additional financial well-being features can help attract and retain talent.
Robust contingency planning ensures business continuity in the face of disruptions, fostering resilience and adaptability. Improved organizational agility enables companies to respond swiftly to market changes, gaining a competitive edge. Furthermore, investing in a knowledgeable global payroll service provider can help develop and strengthen your in-house expertise, empowering teams to manage payroll operations effectively.
Compliance advantages
A global payroll program can reduce errors and improve accuracy by automating processes and incorporating built-in compliance features. Centralized payroll data ensures transparency and facilitates compliance with regulatory requirements, streamlining audit processes.
Advanced analytics capabilities offer valuable insights into payroll trends and patterns, enabling you to make data-driven decisions. An elevated user experience enhances employee satisfaction and enables payroll to spend more time on strategic work.
How FICO simplifies global payroll
Take your team from transactional to transformational
The challenges of global payroll are multifaceted, but by embracing the advantages of a comprehensive global payroll program, you can overcome these obstacles and unlock opportunities for growth and success.
By leveraging technology, optimizing people strategies, and prioritizing compliance, you can simplify operations, mitigate risks, and drive strategic value in an increasingly interconnected world.
As organizations continue to expand their global footprint, investing in a global payroll strategy is paramount to achieving operational excellence and maintaining a competitive edge.
Watch the full webinar on demand.
Ready to explore what an error-free global payroll program could look like for your organization? We can help! Contact us to get the conversation started.
About OneSource Virtual
OneSource Virtual (OSV) delivers patented in-tenant technology and expert services that efficiently automate the administrative, transactional tasks of Workday payroll, taxes, payments, and benefits. We eliminate complexity to give business leaders the confidence they need to drive strategic change.
Our customer-centric approach puts your goals and objectives at the center of everything we do. With over 1,000 active customers and a 95% customer retention rating, OSV is the leading exclusive provider of Workday Business-Processes-as-a-Service (BPaaS).
OneSource Virtual can help take your team from transactional to transformational.
