Global Businesses Spend 80% Of Their Effort On Only 20% Of Their Payroll Needs

By Raj Narayanaswamy | April 27, 2018

The cost of noncompliance is higher than ever

Global labor compliance issues are on the rise, with wage and hour litigation skyrocketing by 358% in the United States since the year 2000. The cost of noncompliance is higher than ever, and yet businesses continue to dedicate significant time and money to employ solutions that don’t fully cover their global time and gross payroll needs. Here’s how it works:

Traditional Vendors Leave Businesses at Risk

Multi-location, global businesses are well aware of the challenges of compliance and risks of noncompliance, and employ big-name traditional vendors to cover their payroll and compliance needs. Still, most well-known vendors that support time and gross pay needs only support major locations (US, Canada, UK, India, etc.) that typically house about 80% of a global organization’s workforce. But what about a company’s 20 employees in Greenland? Or satellite office in Romania? Businesses are on their own when it comes to covering the remaining 20%.

Managing Local Vendors has High Startup Costs and Marginal ROI

To cover the remaining 20% of their workforce, businesses tend to rely on multiple local vendors across locations — but the time, effort, and resources spent managing these vendors can be significant. Often, companies end up spending more time and money on managing payroll for this remaining 20% of their workforce than they do for the primary 80%. Balancing localization needs, the wide variation in local labor laws, various local union or collective bargaining agreements, and different payroll processes across locations can result in major payroll errors, overpayments, underpayments, and labor litigation.

Disjointed Payroll Results in a Vacuum in Knowledge Management

With multiple payroll solutions across locations, companies typically end up data sharing and managing through Excel, which increases potential for errors and information gaps. Collations, validations, and consolidation processes are also often handled manually through Excel, causing huge administrative overheads. Without a centralized system, it’s difficult to get a unified view of payroll (often requiring significant administrative overhead to gain even some semblance of a unified view), and visibility and control over gross pay processes and global compliance will be limited.

Alleviate This Headache by Streamlining Payroll in One Modern System

Global businesses need to reevaluate their antiquated, disjointed payroll processes in favor of a modern, streamlined solution. Ideally, a modern global time and gross pay solution should include these qualities:

  • Scalable and highly-configurable to meet a company’s unique needs.
  • Supports comprehensive end-to-end workflows including global payroll with compliance.
  • Cloud-based with a continuous (and constantly updated) global compliance library at its core.
  • A single platform to support time, absences, gross pay and compliance, that can scale across geographies,to eliminate those high startup costs in your smaller locations.

Original Source: HR.com
Author: Raj Narayanaswamy

Get started today.
Set up a free trial based on your business needs. Start Free Trial

Webinar Recap: Transform Your Global Time And Gross Pay Processes

Thanks to everyone that joined our webinar on global time and gross pay this week, wherever in the world you joined us from! We had a great session led by…Read More

Global Compliance Desk – United States

DOL Amends Regulation on Fluctuating Workweek Method of Calculating Overtime Introduction The Department of Labor (the Department) is revising its regulation under the Fair Labor Standards Act (FLSA or the…Read More

4 hot project management trends — and 4 going cold

The coronavirus pandemic is accelerating a number of project management trends already under way — and greatly altering long-held practices that no longer seem as relevant as remote work rises.…Read More

Exempt vs non-exempt workers: simplify employee classification

In the United States, most jobs are governed by the Fair Labor Standards Act (FLSA), which classifies workers into two broad categories: exempt and non-exempt. Under the FLSA, non-exempt employees are…Read More

The five reasons employees work overtime

Very few people enjoy working overtime, and even fewer companies want their employees stretching their hours. Besides the costs of paying overtime (and a few extra costs), research has shown…Read More

The 7 must-haves for choosing the right professional services management solution

Not too long ago, if you asked any professional services organization to tell you how they managed client projects, resources and utilization rates, the answer was always the same: spreadsheets.…Read More
  • Cloud
  • In The News
  • Corporate
  • Professional Services Management
  • Project and Program Management
  • Shared Services Management
  • Time and Attendance Management
  • Workforce Management
  • Customer Feature
  • Feature Update
  • Time Intelligence
  • Industry News
  • Webinar Recap
  • Global Compliance Updates