Payroll mistakes might haunt HR and payroll professionals at night, but there are simple ways for multinational organizations avoid payroll problems. Embracing automation, joining up local systems and focusing on compliance: these are the three keys that will leave you sleep better at night.
3 scary payroll mistakes for multinational organizations-Reading time: 4 Minutes
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.
So, what can multinational organizations do to minimize the risk of payroll mistakes? Here are three top tips:
1/ Menacing Manual Processes
Many see AI and automation itself something to be afraid of. With the hype in the media around the future of work, many are worried about what the future holds. However, it’s avoiding automation that we should fear: if organizations don’t embrace automation, mundane manual back office processes will take up the precious time of HR professionals.
HR tech has the power to eliminate these time-consuming admin tasks that merely distract HR professionals from more value adding tasks, giving them the power to unlock the power of payroll within the organization. AI won’t take over, but rather make the human workforce even more powerful. Utilizing technologies such as SD Worx’s Digital Assistant, reduces the time and effort it requires to set up meetings and book holidays, for example, so there’s more time to be spent on ensuring the efficiency of the department.
Without having to worry about the manual processes of HR and payroll, the department can run far more efficiently, with AI also reducing human error. This allows the HR and payroll professional to focus on the important tasks, such as running the payroll at the end of the month and completing human-facing tasks, while letting technology do what it does best.
2/ Deadly Disparate Payroll
Disparate payroll systems can be terrifying for the payroll professional. Focusing too much on local payroll results in a disparate payroll system with a confusing set of data from several providers. Working with a global payroll service provider can introduce a global approach, which consequently introduces cohesion into an organization’s payroll. By doing this, organizations can join up local processes with a global overview.
This approach only increases the value of the payroll data to make informed business decisions. SD Worx research indicates that 87% of business leaders around Europe are asking HR and payroll teams for payroll data for this purpose, and with a collated data set from one global provider rather than a collection of regional payroll systems, the data can be analyzed easier and provide much clearer insight. Additionally, 40% of HR and payroll professionals found it ‘difficult’ or ‘very difficult’ to provide data to business leaders, so turning to a global provider enables a collated data set that can be powerful in the boardroom.
3/ Nightmarish Non-Compliance
It’s every payroll professional’s worst nightmare: a non-compliance fine. Risks of non-compliance are significant with potential fines for GDPR can reach up to €20m or 4% of an organization’s annual turnover. Beyond the financial fines, non-compliance can also prove damaging for brand image and have a long-lasting impact on the organization and its business. It’s a risk too great to take but, with new legislations introduced constantly, it can be a headache to get your head around every local law that affects your payroll.
Working with a global provider can minimize this stress as HR and payroll teams can rest assured that their payroll is compliant on a local and regional level without having to work to understand each specific local legislation.