Komatsu relies on SD Worx for all international payroll administration
Streamlining the payroll administration for international employees is no easy task. Komatsu Europe International found the ideal support at SD Worx. Frank Heuts, General Manager HR, and Evi Reynaert, Talent Manager at Komatsu Europe share their story.
Komatsu Ltd. is the world's second-largest equipment manufacturer for the construction, forestry and mining industries. The Japanese giant employs around 60,000 staff, spread across all continents. Komatsu Europe International is the European branch and manages various activities within Europe from Vilvoorde.
The company also relies heavily on the international exchange of employees. Frank Heuts, General Manager HR at Komatsu Europe International, explains: "Many of our engineers are from abroad. By way of example, a Turkish and an Australian colleague are coming to work in Europe. In addition, every three to five years headquarters in Tokyo send fifteen managers over here to gain local experience. The payroll calculation is different for every expatriate or seconded employee, and also very complicated. That means the diversity in our offices and factories causes a lot of extra work."
Payment errors and poor communication
The Japanese company has relied on SD Worx to provide payroll services for 'local employees' for many years, but until 2015, another service provider handled the international employment. This did not always go smoothly, however, says Evi Reynaert, Talent Manager at Komatsu Europe International. "There was a lot of uncertainty concerning the salary payments for our international employees and we had little oversight. Furthermore, they had multiple contact persons, which meant we didn't always know who we should address our questions to."
Clarity and efficiency above all
As the issues remained, Frank and Evi started looking for another partner. "We called on SD Worx for advice as well", Frank continues. "Our many years of excellent collaboration already inspired confidence." Evi: "Expectations were high, but SD Worx met them without a problem. The team convinced us thanks to their clear answers and streamlined processes."
SD Worx had an additional advantage. "We have been using the eBlox HR tool to handle our personnel administration for some time now", Frank explains. "Thanks to the seamless link with the payroll module, the payroll processing is extremely efficient. There is no hassle due to double data entries or information that isn't up to date."
Komatsu is also pleased with how things went. Evi: "We chose to let the active contracts with our former partner run their course, while SD Worx handled any new expatriates as they came in. They currently manage all the active cases."
Efficient and legally watertight
"Working with SD Worx, we can now rest assured that we are in compliance with all the formalities for our international employees and that they will receive their salary in their account correctly and on time", Frank declares with satisfaction. "Furthermore, SD Worx prepares accurate tax returns for our expatriates and provides tax advice. They agree that everything runs much more smoothly now."
