The Advantages of Outsourcing for Efficient Global Payroll

12 January 2018


In an increasingly globalised world, there is a vast array of opportunities for businesses to explore. For companies looking to expand their international reach, payroll is one of the biggest consideration factors. Operating in multiple countries has its fair share of challenges: each region has its own local legislative requirements, and complying with these is crucial in maintaining both reputation and revenue. Here’s how outsourcing can help:

Striking a ‘Glocal’ Balance
The term ‘global payroll’ is not a one-size-fits all solution as often assumed, but a centralised business department – a misconception that payroll professionals and HR teams need to tackle by making clear that the term ‘global payroll’ incorporates both global and local market capabilities. Without local market knowledge and legislative understanding, a global payroll model simply cannot exist.
Outsourced payroll providers understand that achieving the right balance between the local and global aspects involved in payroll, in terms of ensuring compliance with all local market legislation whilst optimising the efficiency benefits that a global offering can deliver, can be done by building systems with a global outlook and local knowledge in mind: a modern-day, bottom up payroll services approach.

Cost Control
Globalisation can be expensive; thus, organisations look to save money wherever possible. By outsourcing, an organisation can allow for the appropriate level to be paid in a lower cost location. Once you combine that with the savings which come from consolidation and automation, an organisation will be much better placed to move forward with globalisation plans.

Improved Accuracy
Payroll mistakes can be hugely detrimental to a business. When it comes to globalisation, it's likely that you will be dealing with different tax regulations and payroll systems. Unless you have fully trained, an automated system and capable payroll staff, who are more than adept with what can sometimes be the incredibly complex regulations in place in different markets, your payroll department will probably end up making the occasional mistake.
By making payroll mistakes, you risk angering your employees, or even worse, the government of the country you're operating in. With a reputable payroll service provider, you are far less likely to become the victim of an error than handling payroll processes in-house.

Increased Reliability
Operating on a global scale means increasing your workforce across several countries and even continents. Whilst your staff may be highly skilled, there is always the chance that one of them will fall sick or be on holiday. Even the slightest change to routine can cause payroll departments difficulties. With offices all over the world, it's crucial to ensure that organisational output remains unaffected. Outsourcing payroll is a sure-fire way to ensure nothing changes irrespective of illness or holidays. It also saves vast amounts of time and provide piece of mind, simply because you won't have to help new members of staff get to grips with your payroll system.

Better Security
Operating on a global scale usually means having the details of personnel on file all over the world too, thus potentially exposing yourself to all sorts of sophisticated cyber-attacks. With financial details being a core part of payroll department records, it's essential that every element of your business is prepared and able to robustly defend itself against attacks. To do so, your business needs to implement the right infrastructure: some companies simply don't have the resources to ensure details are kept safe. Outsourcing to a payroll service means you'll be benefitting from industry specific technologies which are able to prevent such attacks from occurring.


Businesses need to consider payroll services as a key part of their globalisation journey: international expansion can be daunting and involves several complexities, so outsourcing can be a beneficial option to any organisation that is looking to reduce costs and improve overall processes. By relying on the combined local and global expertise of a reputable payroll services provider, businesses can relax in the knowledge that they are in safe hands when it comes to achieving efficient global payroll.

SD Worx is a global Payroll and HR service provider. During our 70 years history we have acquired an extraordinary amount of expertise in Payroll, HR and Tax & Legal matters across the globe. Today, more than 60,000 large and small organizations around the globe rely on our expertise.
For more information please visit our website, you can also email us or call us on + 44 (0)203 051 3696.

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