6 August 2017
Organisations are now struggling with the increasing complexity and global nature of payroll. With 51% of payroll functions already outsourced across organisations, companies are now looking to payroll to integrate and support cloud and HR platform based processes [Nelson Hall report].
Companies now want to combine HCM, payroll, employee analytics and forecasting for attracting, developing, engaging, retaining and managing their workforces. With one payroll provider, these needs are combined for a more practical approach, with key benefits including cost saving and visibility.
So, why should you switch to an outsourced payroll provider? Here are five reasons:
Consistency and compliancy can be a challenge. Payroll errors cost the average FTSE 100 company between £10M and £30M per annum [PWC report]. Evidently, failure to select the right payroll provider can work out extremely expensive for a company, not just in terms of money but also business reputation.
Some payroll problems are commonplace: therefore it is a good idea for a company to have prior knowledge of these issues, so they can be avoided at all costs. Managing risk and compliance is an unprecedented change for multinational companies that continuously face problems in managing payroll. Investing in managed and comprehensive outsource payroll services in order to drastically improved efficiency, for employees and managers alike, is desirable.
As mentioned in Monika Garg’s blog in Personnel Today, companies around the world need to employ the right people in the right locations, for the right salary, to make business sense. Compliance is a key driver in payroll, particularly for clients that have small employee populations outside of their key established locations.
Managing payroll for mobile employees and dealing with cross-border issues needs to be managed in a coordinated manner, so the issues in the home and host country can be addressed simultaneously. In addition, payroll managers need to offer employees a self-service form of payroll, so that reporting can be accessed remotely.
The role of payroll is especially important in streamlining key HR processes for a globally dispersed workforce. HR administrative functions, service delivery, talent management applications, workforce management and HCM applications must be in conjunction with payroll and broader integrated offerings to provide companies with precious information about their workforces.
By 2020, it is predicted that 25% of global midmarket and large enterprises will have invested in a cloud-deployed HCM suite for administrative HR and talent management [Gartner report]. This statistic demonstrates that payroll professionals need to move to a provider that can offer more than simple payroll services.
One of the smart ways to address the need for an outsourced payroll provider is to demonstrate the cost of not switching. It may be costly to integrate an outsourced provider at first, but in the long term money will be saved, not to mention the fact that increased compliance puts businesses at an advantage.
Organisations that struggle to obtain visibility of the end-to-end payroll processes and effectiveness of controls can find it challenging to maintain clarity in terms of roles and accountabilities.
It is important to think globally and act locally when it comes to payroll, which can be achieved by choosing a global provider with local knowledge. Most companies are facing the inherent problem with HR and payroll systems of not being compatible, as each country has its own system and rules that simply aren’t compatible with the regulations of others. This could potentially be costly and challenging to manage and maintain. If businesses don’t integrate they are faced with dealing with different currencies, tax and social security requirements, as well as different jurisdictions and regulations.
If organisations want to avoid the challenges of managing and processing payroll, or find it hard to keep up to date with regulations in various markets, an outsourced payroll provider with an experienced team is the answer. Outsourcing payroll providers are dedicated to handling the full payroll journey while embracing innovative techniques and technology. In addition, outsourcing a provider offers in depth and valuable information, so businesses can focus on their strategy and, their most important asset – their people.
In short, choosing an outsourcing provider ensures that companies are avoiding duplication in terms of effort, overall making for a more consistent employee experience involving just one provider, one contract, one point of contact, and the roll-out of a single payroll system with visibility across all geographies.
To find out more about SD Worx’s HR and payroll services, please contact WeAreGlobal@sdworx.com.
The summer months can sometimes be quiet for the payroll department, as employees enjoy well deserved breaks. However, with the final quarters of the year approaching, it’s time to get back to work—payroll never takes a break, after all.
Here are three ways to ensure that the department is as productive as ever as it prepares for the busy second half of the year.
In today’s business landscape, organisations are facing uncertainty as they plan for the future. When managing this business change, leaders don’t always think to look to the HR and payroll departments for the answers. However, working with a Global Payroll Provider can open up opportunities that could ensure it thrives and grows despite the challenges of today.4 September 2019
Brexit. It doesn’t matter whether you’re an employee or employer, there is little clarity over exactly what it means. While the British Government scrambles for an outcome, organisations sit patiently, doing what they can to prepare for all eventualities. Considering that there is no certainty and a myriad of possible outcomes, it makes it extremely challenging for organisations to put plans in place.
When the time comes for a company to expand into new territories and take operations global, it can mean a significant increase in workload for the HR and payroll departments – so, how can expanding businesses manage this transition with ease?20 June 2019
SD Worx explains the importance of balancing global and local payroll operations for expanding international businesses and how a multinational payroll provider can help keep this balance.14 May 2019
Running global payroll for an organisation operating in multiple countries can, at times, become somewhat overwhelming. With various rules and regulations to comply with and huge data sets to handle, many payroll professionals would welcome a helping hand. Today, with advancements in HR and payroll technology, that hand doesn’t have to be human—in fact, embracing these technologies can unlock the power of payroll within an organisation.4 April 2019
What will Brexit mean for the social security rights of UK nationals currently working in other EU states, and of nationals of the remaining 27 member states now in the UK? Will these cross-channel workers benefit, for example, from state pension contributions they made in the UK and vice versa if they return to their countries of origin?14 March 2019
The clock is ticking on the UK’s exit from the European Union on 29 March 2019. But we still don’t know the terms of its departure or what impact Brexit will have on employment both in the UK and the 27 remaining EU member states. Faced with this level of uncertainty, HR and payroll teams need to start their HR Brexit planning right now.18 February 2019
Today’s business world is becoming increasingly international as technological advancements make it easier for organizations to operate in multiple regions, or even globally. However, when it comes to modern international payroll, many businesses struggle to run their payroll on a global scale.12 February 2019
The SD Worx team has returned from another great annual UNLEASH conference. Over 5,000 attendees gathered at the RAI Exhibition and Conference Centre in Amsterdam – the site of the first conference seven years ago.7 November 2018
Payroll is the lifeblood of an organization, so getting it right is crucial. When organizations branch out into new geographical locations, the risk of payroll mistakes heightens. It’s a scary thought for HR and payroll professionals.
30 October 2018
September: the month that children dread as they make their return to school after the freedom of the long summer months. But for adults, especially those in the payroll industry, after the quiet summer period September should be a time to be motivated and to adopt that ‘back to school’ thinking. It’s important for teams not to be stagnant. In the ever-developing payroll industry, adaptability is key and so learning shouldn’t stop just because you’ve left school—in payroll and HR it’s all about continuous learning.18 September 2018
The multinational payroll industry is set to be worth 4.8bn by 2021, yet, despite the evident power of payroll, only a third of multinational organizations have a global payroll provider. Instead, they rely on a disparate selection of multiple local providers and therefore have no access to collated data or a clear insight into their employee attrition, engagement, or retention.30 August 2018
Is your HR and payroll team feeling the heat this summer? With the weather heating up, most of us want to get out and enjoy the sun or escape on a holiday. However, with more staff members out of the office, this can mean that the payroll team might be running on reduced numbers. And, typically, less team members results in a higher workload for those in the office. This is where HR and payroll technology can help, giving HR teams a well-deserved summer holiday.3 August 2018
The HR and payroll industry is in a constant state of change. New laws and regulations are introduced around the world, some of which—including GDPR—change the way the whole organization handles its processes and services.26 July 2018
Payroll data. How often do we stop and think about how important it is to a business? Although payroll is often viewed as a back-office function, it is an essential part of any organisation, and is much more than just payslips.5 July 2018
The multinational payroll market is growing at an impressive rate, with the entire payroll services market expected to reach 4.8 billion by 2021. The demand for international payroll services are increasing, due to the heightened need for compliance to local laws and legislations, and a demand for more comprehensive technology. However, even though the payroll market is growing, many organisations still aren’t unlocking the power of payroll.3 July 2018
The results of SD Worx’s recent international survey are in! With 1,500 respondents from nine European markets, the survey reveals that up to 87% of business leaders are now asking for employee data to inform business decisions—HR and payroll data is now being regularly used by business leaders.11 June 2018
The HR and payroll industry is in constant change, with digitalisation, GDPR, and the gig economy effecting the HR and payroll department in organisations around the world. So, how can you ensure that both your HR department and employees are able to keep up with the pace of change? It’s time to unleash the flexibility of your HR.26 April 2018
Payroll is a vital part of any organisation, whether it’s a local business or a multinational corporation. A simple payroll error can cause a large amount of damage, so getting it right is essential.
30 March 2018
With more and more employees relying on technology and flexible working than ever before, the world is becoming increasingly connected and globalised. However, with this new reliance on global working, what do HR and payroll teams need to consider when implementing payroll for multinational companies?7 March 2018
The end of the payroll year is typically a very stressful time for payroll teams. With an extensive amount of tasks to be completed within tight deadlines, any mistakes can be costly.
However, the end of year process can be drastically simplified by engaging with tailored payroll software. This technology can be utilised to assist payroll professionals throughout the year, but how can it help payroll teams in April each year?27 February 2018
Technological advancements are helping to turn a vision of digitally accessible, automated payroll processes into reality. Here’s five predictions for the future of payroll:5 December 2017
A recent survey carried out by SD Worx revealed that out of 4,000 European employees surveyed, 44% had been paid late by their employers and 48% of those that had been paid late had also been paid incorrectly. The research exposes several risks for businesses associated with not paying their employees correctly: let’s explore the top three.13 November 2017
Big data and analytics have now entered numerous industries, including healthcare, financial services and retail. Despite many HR and payroll providers now using big data as part of their services, the industry has predominately been slow on the data uptake, in comparison to adoption within others. HR and payroll is largely an industry that relies on human intuition, rather than data and statistics, however, providers have started to see for themselves benefits of big data and analytics, and thus are beginning to implement these into their services.10 October 2017
If someone was to ask you how much your payroll operations cost, would you know the answer? It seems like a straightforward question, yet the answer for many HR professionals is often hard to pinpoint. Understanding – and therefore being able to make future projections – about how much your payroll costs requires a clear appreciation of various business components.10 October 2017
It’s a well-known fact that businesses need to continually adapt in line with macro-environmental changes in order to maintain and grow their competitive advantage, but in the fast-moving retail sector, this is especially true. The advent of technology has clearly had a huge impact on retailers across the globe in recent years, with online retail purchases catapulting tenfold and the industry as a whole riding high.10 October 2017
With Britain voting to leave the EU last June, 2016 was a big year for pan-European news. And, while the full implications of Brexit remain to be seen, it is clearly creating much discussion amongst business leaders who are already starting to plan ahead for the legislative changes that will no doubt impact both their operations and compliance.
One of the business areas most likely to be affected is international HR and payroll, so with that in mind, ‘Brexit and Business’ will be one of the key themes at our upcoming 2017 SD Worx European Conference. This year’s event will be bigger and better than ever before, taking place on the 8th February at London’s Hilton on Park Lane.