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Every successful global payroll engagement needs a silver lining

by Anika Panwar

E&Y’s Global Payroll Survey brought out that, 55% of executives were unsure of the existence of a global payroll vendor that could provide payroll services in all their countries of operation. The market wants a solution that is not only cost-efficient, flexible, and scalable but also makes no compromises on the quality and accuracy. Ironically, despite the quantum leap made in the global payroll practice, the concept of “single yet globalized & localized” payroll service has not made headway against this myth.

Global Payroll

 

The real question when dealing with global payroll lies in – ‘how one administers payroll and stays updated with the changing compliances and laws of the land in all countries that they are present in, and do it accurately?’ To top this off, the dubiety in the availability of a globalized payroll technology solution – which brings us up to the bigger questions – is there really a “single” go-to solution for all your global payroll needs? If so, who and where are these “SINGLE GLOBAL PAYROLL VENDORS”? How does one test their capability? We’ve compiled a few prominent indicators that one could keep in mind in their quest to select a capable service provider.

Necessity is the mother of invention. ROBOTICS AND ARTIFICIAL INTELLIGENCE DRIVEN SOLUTION – No global solution is complete without having in place a software that not only guarantees viability but also ensures a high degree of quality and accuracy. The key is to look for a solution that strikes a perfect balance between technology and user-experience. A system that uses robotics driven automation to focus on the error-prone, repetitive tasks such as input/ output validation, a calculation based on an algorithm, etc. Artificial Intelligence is key for intelligent assistance to end-user through data/ information mining from the database. E.g., Chat Bots.

Go Beyond-. PAYROLL ISN’T JUST ABOUT “GROSS-TO-NET” – Going beyond than just “gross-to-net” processing to a fully managed payroll service testifies the provider’s deep domain knowledge and his ability to provide a global solution. A fully managed payroll service entails input collation, inputs preparation, payroll processing, payroll help desk, data management, and timekeeping. It further includes administering payroll and in-country related compliance with a dedicated payroll help desk and, other HR related services.

Last straw. DON’T IGNORE YOUR SPARSE WORKFORCE–Larger global payroll players tend to provide their services only to those countries where their clients could guarantee a significant employee count or have a “minimum headcount” condition, often ignoring countries with sparse employees. This forces most organizations to look out for local in-country service providers to cater to smaller groups of employees resulting in them having to deal with multiple providers for the same service. Assessing the provider’s ability to serve the underserved markets irrespective of the headcount is a very crucial factor. A single vendor approach results in a uniformed service delivery experience and single-provider accountability for all Global Payroll needs. This also ensures hassle-free process in gathering/ receiving payroll inputs, which might otherwise become a cumbersome task.

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SaaS powered HRO: How to standardize, harmonize, optimize, virtualize and efficiently deliver HR services in your “long-tail” countries?

SaaS powered HRO_Neeyamo

Say “NO” to Long-tail countries HR blues

by Teena Thimothy  on 11 July ’14

Globalization may no longer be the buzzword but it sure has contributed to the new organizational agitator, “long-tail countries”.

Globalization provides varying benefits to multi-national companies and individual economies around the world, by creating markets that are resourceful, even out the competition by decreasing monopoly, and enables increased reach with potential customers.

However, there is also the assumption that the costs associated with globalization outweigh the benefits. Organizations will have to expand their employee reach too. This increases the chance of residual employees in multiple countries. Organizations may not be able to maintain a standardized global HR practice.

For organizations, the need to address HR requirements is always one of the key priorities. It is now about addressing these HR requirements in multiple countries where the chance of making available a local HR team to support the employee population can be very demanding. All the same, local employees require support from the HR organization.

An article by Alsbridge stated, there is no ‘silver bullet’ solution for the ‘Long Tail’, but consideration of the some vital rules will help organisations who are seeking the benefits of global HRO with the best HR Technology support.

The list of challenges and solutions may not seem to be in par, but organizations with presence in long-tail countries; primarily have issues pertaining to IT systems (many times the lack of it or its fragmentation)and lack of standardization. Local regulations are galore. All these combined with lack of proper business case to have local HR hinder HR’s ability to provide local HR support.

The trick to substituting the silver bullet, is to make available to these long-tail countries, a scalable, sophisticated and sustainable SaaS powered HRO.

Case in point: This is about an organization with more than 50,000 employees that operates in more than 50 countries worldwide. It has around 45,000 employees spread across 15 “large” countries, and around 5,500 employees across 35 “long-tail” countries with an employee count ranging from 1 to 500.

Of these, 25 countries had an employee count of less than 100. While large countries have access to local HR and world-class HR service delivered on Tier 1 OnPremise HRIS/ ERP, employees in the long-tail countries have very limited access to both HR, and HRIS!

The company wanted the same class of HR services to its employees across long-tail countries. It wanted to leverage the power of the cloud to make its HR systems universally accessible while aspiring to provide its employees with best-of-breed system and wanted to ensure it had a compelling business case for this as well.

The Challenges faced by global organization in “long tail countries”;

  • Inconsistent and inadequate HR support
  •  Lack of visibility
  •  Compliance risk
  •  Cost vs. service
  •  Fragmentation of HR information and systems

The company embarked on a journey to transform its HR service delivery leveraging SaaS powered HRO, portfolio of discrete HR apps, and a structured process (of course with the help of its partner) to standardize, optimize, harmonize, and virtualize its HR processes. It undertook a massive exercise to map its current processes and then drew global templates to standardize its global HR processes. It leveraged multi-tiered service delivery to ensure round-the-clock availability of HR services to employees worldwide. Multi-tiered delivery also ensured a fine blend of local-remote (centralized) delivery of efficient HR services.

Globalization is simply one of the changes happening in the workplace over the last few decades. The world of technology is opening up new possibilities for organization of all size. Consumerization of technology is not just a random trend but it is the key to achieving HR delivery excellence.

The key to releasing the issues associated with long-tail countries HR service delivery, is making available SaaS powered HRO services. This bundled approach enables minimal capital outlay, and a predictable variable pricing.