Why Global Payroll Systems Almost Always Work
Payroll is one of the most important functions of any business. After all, if you don’t pay your workers then you cannot expect to manufacture, process, ship, sell, store, or provide services to anyone. This is why the payroll and HR department, as well as the system being used to process payroll, needs to be one of the highest strategic points in any global corporate. The problem is that, often times, global companies will have a different payroll system or provider for each of its divisions, locations, or countries. This creates a wide array of duplication of efforts and added costs. A global payroll service is the way to go for any business.
Global Payroll Allows for a Single Payroll Department
For any C-suite executive in charge of HR or Payroll, this is music to their ears. So much time and energy is wasted each year coordinating among different systems and individuals in different locations when there are several payroll departments. By having one global system, the payroll department is able to be in one place in the organization. There can be one single department to work with the HR managers in the different plants or locations. There is no longer a duplication of efforts, which is expensive in terms of labor but also in terms of the space that these large HR departments take up. A single department for payroll reduces these added costs.
Global Payroll Allows for a Single Point of Contact
When working with any outside vendor, it is very nice to be able to call one person for all of your needs, whether you are in the distribution center in the U.S., the headquarters in Germany, or the plant in China. Having one point of contact is only possible if you have a single global payroll system for your company. If using payroll services, this will most likely be your account representative that can take care of your every need, no matter which location is calling.
Global Payroll Allows for Less Compliance Issues
Compliance with the laws and regulations of a particular country can be tough. When you are dealing with several different payroll departments and vendors, it can be even harder to know if laws are being complied with. Having a single global service for your payroll can reduce the stress being caused by this issue. These large payroll companies know the laws and regulations, and they will often have compliance experts on staff to help you with the nuances of taxation, regulations, and any other compliance issues that may come about.
Global Payroll Allows for Lower IT Costs
Along with creating only one Payroll Department, having a global system also allows you to only need a few IT personnel with knowledge of the one system on staff. Whenever changes have to be made to a system, the individuals working on that system will need advanced knowledge of the program. By only having one particular system for payroll at a global level, these few individuals can take care of the problem instead of having several individuals hired at each of your global locations. If you are having issues at your center in Mexico, the IT personnel trained on that system can handle the issue remotely from the U.S. This allows for large cost savings.
Global Payroll Allows for Better Reporting
Global companies have a lot to worry about when it comes to their year-end, and getting their financial statements out the door is one of the biggest concerns to their investors and owners. When it comes to a global payroll system, the payroll and salaries numbers are extremely easy to obtain. Not only that, but a single system will allow the users to report payroll within the system under one currency, getting rid of the need to go through several currency translation procedures. The accountants will be extremely thankful that your payroll system is a global one.
Global payroll services are extremely useful in a global company. Having a single, integrated system creates efficiency and reduces the costs of doing business. While reducing these costs, these global systems are also making reporting on the financial statements easier to do. In fact, it could be fiscally irresponsible for your company to not have these systems.