Globalization, increasing legislative complexity, rapid developments in digital technology, and changes to global data privacy are creating opportunities to build payroll into a strategic entity.
If you take payroll at face value, it isn’t a strategic process. But if you peel back a few layers of the onion, you quickly realize that globalization, increasing legislative complexity, rapid developments in digital technology, and changes to global data privacy are creating opportunities to build payroll into a strategic entity going far beyond data entry and transactional processing.
Indeed, today’s payroll professionals and the function itself must operate as strategic partners to other parts of their organization, including human resources, finance, IT, and risk and compliance. Key to making strategic partnerships a reality is the uptake of digital technology to drive self-audits, data mining, data integrity, data reporting, and metrics which both aid executive decision making around issues such as legislative compliance and future staffing costs as well as enhance the employee experience and levels of engagement through increased accuracy, efficiency, and self-service.
Increasing pressure for global payroll solutions
Although research indicates that the level of payroll standardization is less now than five years ago, there is significant and increasing pressure for global standardization based on advances in technology. With global HR and finance ERP deployments becoming commonplace, it is becoming increasingly important for companies to move to a global payroll solution that gives them the ability to stay current with tax and compliance issues globally, delivers process standardization and efficiency, and provides reliable and effective data for decision making. The increased pace of advances in digital technology is critical to the reimagining of payroll operations and the achievement of an effective global payroll service and we are seeing growth in confidence from payroll professionals that global payroll solutions can be applied successfully and will derive significant benefits to companies.
Making global payroll work
The very first step to take before embracing a global payroll solution is to look at your overall payroll delivery strategy. Decisions to be made on that delivery strategy include:
Once you know what the strategy portion of your global payroll framework looks like, following practical tips will help ensure global payroll success:
Digital technology, improved vendor service delivery models, and global capabilities all make delivery of global payroll both possible and attractive to the transnational business. As ever, the key to success for the future payroll function lies in the ability of HR and Finance, the “payroll owners,” to make the argument for strategic payroll, be clear on how they will benefit the business and the employee experience, and embrace the digital technologies that help it happen. By taking on board these practical steps, a strategic global payroll function can become a successful reality.
To learn more on KPMG’s global payroll services and HR Advisory services, click here.