Global expansion usually leads to the need for Global Payroll. There are many reasons why an organisation would want to outsource this part of their business including compliance, cost effectiveness and administration.
Compliance is usually the number one reason why organisations outsource their Global Payroll but often organisations will not take the leap to outsource unless they also see the potential to save money, reduce the time spent on administration within their organisation and all the while ensuring they will still be provided with control.
The issue with cost being a driver when considering outsourcing Global Payroll is that it is typically difficult to extract and capture the total costs that the company would be spending if they were doing the Global Payroll themselves. To gather all he potential or current costs for this including all elements of the value chain can be done but it is something companies struggle to do and is invariably based on a ‘cost of payslip’.
If you want to calculate the ‘true cost’ you’d need to consider all related processes, systems, software, cost of cash and the time spent on whatever processes the company currently has in place in the non0core areas of business.
Sometimes organisation remove the payroll skills required from the ‘true cost’, this results in inaccurate cost predictions for Global Payroll and much more than simply the ‘payslip price’.
With this is mind the return on investment (ROI) should the strategically designed by Global Payroll specialists who have a real ‘true cost’ understanding of al the financial nuances of the cost of Global Payroll and to make sure that the desired aim is actually being met.
Knowledge and Expertise
What you really have to ask yourself when considering whether or not to outsource your Global Payroll needs is, do you even have the relevant knowledge and expertise of this highly complex subject across payroll, HR, tax, finance and IT to successfully drive implementation?
Usually global and international payroll expertise is not a common resource within businesses but having a great understanding of the subject is crucial for compliance and the basic set up of payroll. Payroll laws and legislation can be drastically different from one country to another and it is of the utmost importance to be proficient in the area within which you are setting up payroll.
These local variants require a deep and comprehensive understanding of Global Payroll as well as HR, tax, finance and IT. Making mistakes in Global Payroll compliance can result is some serious ramifications for your business. Expansion can be great but the misunderstanding of local requirements can suit in expulsion.
Resources needed to outsource Global Payroll
If you want to get the most out of outsourcing or changing provider, there is information that you should prepare. Organisations should define their aims; confirm what necessary resources they do have and what will be needed to be filled in my the Global Payroll provider; analyse what they are currently doing and make sure the outsourcing model is understood throughout the organisation to create clear communication from the organisation and their Global Payroll provider.
Why do you need a Global Payroll provider?
International expansion brings opportunities and challenges for organisations of any size but managing payroll should be amount the most important considerations. Some businesses opt for Global Payroll solutions by using stablished, country specific processes but this approach can often be disjointed and results in critical compliance issues being overlooked and ultimately can negatively impact the organisation’s financial health. A Global Payroll provider can help you avoid these expansion pitfalls by developing a more efficient, more compliant payroll system for both your domestic and international needs.
Our Global Payroll services span across the world, providing payroll solutions in every continent with the innovation, consistency and tailor made service that TopSource’s reputation is built on.