Organisations looking to streamline their global payroll operations should look beyond big bang projects such as the rollout of a worldwide system, according to new research.
"If you once thought your only option was to buy into a costly global platform that would push countries large and small into a one-size-fits-all model, think again," Julie Fernandez, director at global sourcing advisory firm TPI, wrote in a research note published on Friday.
When seeking to streamline global payroll processing, businesses are increasingly avoiding centrally chosen systems or service providers, TPI said.
"Rather than seeking order by issuing global vendor RFPs [request for proposals] or country-by-country enterprise resource planning (ERP) build-outs, more and more global companies are starting with a purposeful global payroll strategy and governance model," Fernandez said.
"Visions of a single provider or human resources payroll are now replaced with a global framework that is designed to identify optimal payroll deliver models and the service providers best suited to the scale, complexity and regional footprint." When deciding what payroll efficiencies can be achieved in a particular region, try to identify certain characteristics - such as the number of employees, types of regulations and payroll practices - that can affect the types of changes can be made, Fernandez said. Large countries are better suited to fuller-scope, centralized solutions that may include in-house ERP systems or outsourced, fully managed payroll services.
Organisations should also look at what changes can be made to existing multi-country ERP platforms or existing relationships with payroll providers across different countries to realise further efficiencies, she added.
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