Challenges & Goals
Siemens PLM Software, a computer software company and business unit of the Siemens Digital Factory Division, creates 3D and 2D Product Lifecycle Management (PLM) software. Founded in 1963 as United Computing, the company was re-founded as Siemens PLM Software in 2007 and is headquartered today in Plano, Texas.
Siemens PLM Software works with thousands of companies to optimise their product lifecycle management processes. It operates across 14 countries with over 9,100 employees, has sold over 15 million licenses, and serves over 140,000 customers worldwide.
Managing international employment becomes increasingly difficult due to complex and fast-changing laws and regulations that differ between countries. When it comes to managing employees across different international locations, initial challenges come from the cultural and language differences in managing 14 countries.
However, there were three main challenges that Siemens encountered. The first was handling the governance and the processes within each individual country, and then aligning them across countries. The second was being compliant with each country’s legislation, and the third was working to reduce complexity when this process is implemented. Siemens PLM Software therefore needed to make sure that there was the right expert to manage payroll in each country.
As a result, Siemens PLM Software’s main goals were to have one provider for the entire European territory, rather than multiple local vendors and multiple contracts, and to install financial control on local HR and payroll spend. Siemens PLM Software also needed a system where they could focus on their core business and not need to invest in services that the company wouldn’t otherwise produce as part of its mission and objectives.
Siemens PLM Software also needed a way to manage its international payroll that was cost efficient, and could allow the company to be flexible and adapt its payroll to its business needs. This solution would ensure that Siemens PLM Software is consistently complaint with multiple legislations
SD Worx, a global HR and payroll service provider, worked with Siemens PLM Software to implement a strictly project-driven initiative. This enterprise was delivered through central program management for local implementations. Support (both for time and financial management) was provided to the Siemens PLM Software headquarters, where a counterpart program manager worked in tandem with an SD Worx project manager.
Only a few cases of central governance were employed. These were in the cases of escalation; central invoicing (to be able to control costs); a centralised decision on switches in service level; and a centralised approval of extra services (the quotation was not approved on a local level, but via the Siemens PLM Software HQ).
In June 2014, SD Worx executed a development project with Siemens PLM Software, so that by January 2015, most countries that Siemens PLM Software was operating were using an SD Worx payroll management platform.
Siemens PLM Software now uses one SD Worx IT platform that covers payroll management across EMEA