Getting it Right: Small and Mighty Payroll
There’s a common misconception that payroll offerings are only necessary when your organisation reaches a certain size. However, small companies should not overlook partnering with a payroll provider that fits their needs, especially when they’re looking to expand into new regions.
Many of the challenges that large organisations face are often felt by smaller companies too. For example, ensuring that the organisation is compliant with HR and payroll laws and legislations in each country or region is a problem for any organisations operating in multiple countries.
Small companies require an efficient offering that can be implemented quickly and provides the organisation with clarity around its HR and payroll data and processes. Whether it’s ensuring that the payroll procedures in place can be located and actioned simply or providing clarity about tax legislation or social security, having the right solution in place can transform the organisation’s HR and payroll.
Without the established legal teams that many large businesses have, some small companies often feel overwhelmed or are unclear about local employment and payroll legislations, which can slow their growth and could even lead to legislative mistakes within the HR and payroll department. Not only will this result in large fines, but can also cause major brand damage and will lead to unhappy employees (and consequently unhappy customers).
When expanding into a new country or region, organisations also need language and cultural expertise in each country they work in, alongside ensuring that team members are able to liaise with each region in their local timezone. Without this local expertise, organisations are at risk of limited payroll that does not function at its optimum efficiency. Recent research revealed that 25% of Belgium SMEs have a lack of clarity about local legislation regarding employment and social security obligations when it comes to expanding internationally. This is likely felt across Europe.
No matter whether the company is two or 250 people, all need to be paid correctly and on-time. Completely accurate multi-country and multi-currency payroll is critical, and the employee(s) looking after payroll should be able to control processes and take corrective action if something goes wrong.
So, what do small companies need to address these challenges?
Organisations that want to ensure their HR and payroll is managed efficiently should choose a payroll partner that can manage all compliance, legal and regional payroll processes. When it comes to payroll, there shouldn’t be any risk involved, and investing in a partner that can cater to your organisation’s specific needs can give that vital peace of mind.
Alongside complying to local laws and legislations, managing and processing HR and payroll data correctly is also of paramount importance. Whether it’s employee data or finance data, the organisation needs to be able to collate, process, and document all data efficiently. This also ensures seamless reporting capabilities for the organisation.
Managing employees and processes in different countries or regions can be challenging, but having a payroll provider can give the organisation a single partner to rely on, while the payroll provider manages each country directly. The payroll provider will also implement a uniform approach, which will simplify the process and will take the pressure off the organisation, letting them rest easy that payroll is accurate and well managed.
If you’re a small business - even if you have just one employee and operate in two countries - and are looking for comprehensive payroll, tax & legal support, and/or training related to international employment, get in touch with the SD Worx team today to see how we can help you.