4 Ways of bridging multi-country payroll gaps

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Information about 4 Ways of bridging multi-country payroll gaps

Published on February 27, 2014

Author: NGAHR

Source: slideshare.net

Description

Picking the right payroll solution for your multinational organization can sometimes feel like an impossible decision. It becomes a balancing act to ensure that the needs of the stakeholders are equally considered with the bottom-line benefits for the company. Not an easy task as these goals are rarely fully aligned.

Managing the long tail: perspectives on handling multi-country payroll operations & globalization. Cay Gliebe, NorthgateArinso Webster Buchanan’s Multi-country Payroll Summit 2010 © Webster Buchanan Research 2010 and NorthgateArinso © Webster Buchanan Research 2010 and NorthgateArinso

The Long Tail © Webster Buchanan Research 2010 and NorthgateArinso

© Webster Buchanan Research 2010 and NorthgateArinso

4 MCP scenarios © Webster Buchanan Research 2010 and NorthgateArinso

River tree • “Accidental” solution – typically Excel • Unstable, but good enough for now • Not fit for large volumes or extensive auditing • Questionable compliance • Unfit for complicated payroll regulations • Data manually entered and maintained • Not integrated with other systems • Easy to adapt and replicate in other locations/geographies • No expert knowledge required © Webster Buchanan Research 2010 and NorthgateArinso

Bamboo jetties • Built-for-purpose maze of nonconnected local solutions • Workable solution, yet unreliable • Difficult to maintain • Fit for low to medium payroll complexity • Difficult to audit due to non-aligned processes • Data manually maintained • No internal integration, limited external integration • Easy to adapt and replicate • Limited expert knowledge required to maintain – what about monsoon changes? © Webster Buchanan Research 2010 and NorthgateArinso

Railway bridge • Large, single-country solution • Reliable and fit for high volume traffic • Capable of complicated payroll regulations • Robust and ready for extensive auditing • Labor intensive: data manually maintained, duplicated between multiple systems • Scope typically more than payroll • Limited or non-existent integration to other systems • Difficult to rebuild or replicate in other geographies © Webster Buchanan Research 2010 and NorthgateArinso

Spaghetti junction • Global HRIS or payroll solution, typically ERP-based • Capable of any degree of complexity in payroll regulations in many countries • Extensive auditing by external regulators • High degree of automation • Wide range of internal and external integration options • Costly to implement and maintain • Expert knowledge required © Webster Buchanan Research 2010 and NorthgateArinso

The challenge: bridge the gap between reliability and flexibility © Webster Buchanan Research 2010 and author Copyright NorthgateArinso. All rights reserved.

HR leaders’ challenges Drive down cost • Process standardization • Transactional efficiency • Self Service adoption • Strategic outsourcing • Fast ROI Improve delivery quality Create a more agile organization • Global HR service delivery model • Deep HR process expertise • SLAs & reporting • Preconfiguration • Proven & integrated technology • Single global HRIS • Uniform technology landscape • Hybrid deployment options • Multi-device access Copyright NorthgateArinso. All rights reserved.

Options & complexity Local In-house Limited In-house Upfront Customization Hosting IT resources Global Outsourced Geographical growth Easy expansion HR service center Shared Service Center Investment HR processes Recurring Standardization 11

A unique platform for standardization Unified HR systems landscape Unified HR/IT landscape Typical HR systems landscape Typical HR/IT landscape Functional blocks Functional blocks ESS/MSS ESS/MSS Contact Management Contact Management Document Management Document Management Knowledge Management Knowledge Management America’s America’s Country 11 Country EMEA EMEA Country 22 Country Country 33 Country Country 44 Country APAC APAC Country 55 Country Self-Service Self-Service HR Document & Knowledge management HR Document & Knowledge management Compensation && Reward Compensation Reward Performance Management Performance Management Training && Development Training Development Recruitment Recruitment Succession Planning Succession Planning Talent Management processes Talent Management processes Payroll Payroll Time management Time management Organisational Management Organisational Management Personnel Administration Personnel Administration Enabling processes Enabling processes Country XX Country

Aggregator model © Webster Buchanan Research 2010 and NorthgateArinso

Standardization: do you have your ducks in a row? © Webster Buchanan Research 2010 and NorthgateArinso

‘What if’ scenarios © Webster Buchanan Research 2010 and NorthgateArinso

River tree • What if you need to replicate this times 20? • What if your excel file gets lost? • What if your system crashes? • What if your resource quits? • What if you get a lot of volume (M&A)? • What if you fail compliance? © Webster Buchanan Research 2010 and NorthgateArinso

Bamboo jetties • What if you get massive legislative changes? • How do you create visibility on the data and uniform reporting? • What if you need integration to other systems? • What if you have to scale up rapidly? © Webster Buchanan Research 2010 and NorthgateArinso

Railway bridge • What if you need to replicate under different circumstances? • What if your long-term experts leave? • What if your local solution is no longer supported? • How do you ensure visibility across your entire employee population? • How do you ensure accuracy of both HR and payroll data? © Webster Buchanan Research 2010 and NorthgateArinso

Spaghetti junction So how can this possibly be cheaper, bring more consistent quality, and be more flexible? Only with a long term perspective •Predictability around TCO •Viability and longevity •Uniformity and repeatability in new markets/situations •Scale if you grow and contract •No need to rebuild •Consistent quality around the world © Webster Buchanan Research 2010 and NorthgateArinso

10 Critical Success Factors 1. Culture & values 2. Management information 3. Identify key staff 4. Project induction 5. Financial control © Webster Buchanan Research 2010 and NorthgateArinso

10 Critical Success Factors 6. Ownership at exec level 7. Clear functional vision 8. Country level support 9. Project governance 10.Living communication plan © Webster Buchanan Research 2010 and NorthgateArinso

Questions cay.gliebe@northgatearinso.com www.northgatearinso.com/payroll © Webster Buchanan Research 2010 and NorthgateArinso

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