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.


Here’s how you service your employees in the #LongTail

by Samuel Isaac  on 14 April 2016

A NewYork headquartered multinational with 20,000 employees worldwide and you are worrying about the only two employees you have in Thailand?

How long is your tail?

HR solutions for the long tail of countries.

According to International Labour Organization, today, some 50,000 multinational enterprises and their 450,000 affiliates employ over 200 million people throughout the world.  According to a survey carried out by Neeyamo Inc., MNCs on average have close to 60% of their workforce within their home countries and the balance placed internationally. Half of these or close to 20% of the population are scattered across a Long Tail of countries. That is more than 40 million employees!

The anatomy of the Long Tail is characterized by a catastrophic combination of low employee headcount scattered across long tail of countries, broken processes and very limited access to the HR technology infrastructure. It is a nightmare for HR leaders across the globe to keep these employees engaged and have visibility & control over these geographies. Not to mention that the local compliance requirements galore and a large number of vendors to manage.

Well, Long Tail is indeed a looooong problem for those managing HR in multinational companies.

So here are the 5 Long Tail HR strategies that should help you effectively manage your talents in “small countries”.

  1. No bees, no honey; no work, no money. GET YOUR GLOBAL PAYROLL STRATEGY RIGHT.
    A critical aspect of payroll is its impact on the morale of the employees. They need to feel assured that they can be paid on a consistent and timely basis. This expectation becomes more accentuated for an employee working out of a remote location.
  2. Garbage in; garbage out. ENSURE YOUR HR AND PAYROLL DATA ARE RIGHT.
    A multinational had a shock of its life when they learned of a highly compensated employee, who had actually stopped reporting to work for 3 months, was continued to be paid. Inadequate data, inaccurate data, and inconsistent data inputs can have significant repercussions in your Long Tail HR operations.
  3. Think compliance is expensive? Try non-compliance. ENSURE YOU ARE AWARE OF LOCAL COMPLIANCE FIRST AND THEN COMPLY NEXT.
    Well, payroll does play a vital role in protecting the company’s reputation by ensuring compliance with various legislations. But HR compliance is more than just payroll compliance. In 2013, for example, there were 20 changes to California employment laws alone. There are close to 200 countries, around 320 legal jurisdictions that can translate to thousands of HR laws/ regulations and millions of compliance transactions!
    Servicing Long Tail HR effectively and efficiently is only possible as a result of the following equations: platform = productivity and platform = predictability. The productivity ensures that you are able to service your Long Tail employees in a sustainable manner with a sound business case and predictability ensures you have the required transparency and control over your HR and payroll operations in these long tail of countries.
  5. Too many moving parts? Move now. CONSOLIDATE YOUR LONG TAIL VENDOR NETWORK.
    One vendor for payroll, another one for records, and yet another one for time, expense, mobility, and what not! That’s not just it – you also need to ensure that these vendors are appropriately empaneled and comply with your organization’s standards – like ISO, ISMS, and SSAE. The lesser the number of vendors you have to manage the better and if this vendor can bring along the right credentials to give you that confidence – then even better!

So well, 2 employees are all that you may have in Thailand but you may now have a world-class solution to support these employees you only wished you had! Write to irene.jones@neeyamo.com to know how?