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