Global Payroll: Can One Size Fit All Countries?
What if your company wants to expand into a new country, but only with a handful of employees? Global payroll becomes a challenge because of localized regulations. Is there a true one-size-fits-all payroll configuration for all countries? No, but it is possible to extend localized payroll to countries with only a few employees without hiring a payroll specialist and setting up a unique system.
The Challenge of Global Payroll in Countries with Small Headcounts
Payroll systems can have localizations for many countries, but there are still going to be fixed costs associated with each country. In countries in the Asia Pacific region, this means that it often takes 100-200 employees in a single country, depending on the region, for the fixed costs to make sense on a per-employee basis. In the United States or Europe, that might be more like 500 employees.
With some payroll systems that aren’t localized everywhere, you might have to add a niche payroll solution, but that will leave you with fewer features and an inability to do reporting across countries. This also might require you to hire a payroll professional specifically for that country with the niche payroll system, someone who knows all the complexities around time zones and local compliance requirements. If you only have a few employees in that country, to begin with, that’s not ideal because the fixed costs associated with that niche payroll setup are hard to justify with small headcounts.
To recap: Without localization from your main payroll system, you are looking at the inability to run reports across all of your employee bases without physically transferring information, the inability to offer all the payroll capabilities such as employee self-service in every country, and looking at paying a much higher cost per employee to run payroll in countries with smaller headcounts.
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The Expedient Global Payroll Option
However, with a payroll offering like Synchrony Payroll, there is a more expedient solution to the challenge of payroll in countries with limited employees. Synchrony Payroll utilizes localization services such as Blue Marble Global Payroll, enabling you to extend many of your existing payroll system capabilities to those smaller headcounts through cloud-based aggregate reporting and managed payroll services.
Synchrony Payroll offers payroll information from all countries in which your company has headcount in a single dashboard— Rizing’s Global Payroll Dashboard. This helps you wrap everything under a single banner, in a single interface, and tied to a core HR system of record, regardless of where employees are located.
The Global Payroll Dashboard solves many of the issues you’d have with a niche payroll system. It allows you to run reports across countries, looking at your employee base as a whole to review important spend items such as overtime costs. You can also take that data to analytics products such as Rizing’s Lyra solution to take a deeper look into your payroll information. The localization capabilities in Synchrony Payroll also extend employee self-service to any employee in any country—meaning employees in countries with small headcounts will have the same level of payroll transparency & user experience.
Additionally, Synchrony Payroll managed services with the Global Payroll Dashboard eliminate the need for a country-specific payroll professional in every country. The securely integrated nature of the dashboard and data will allow your current payroll specialists to access the payroll data from any country without any extra effort or localized expertise. Finally, your IT group—or a single person—will be happy, as there won’t be multiple payroll systems to manage.
Curious about Synchrony Payroll? Learn more to see if it’s a good fit for your company
A Better Payroll Experience at Lower Cost
Rizing worked with one banking customer who had four large countries running their own payroll but could not extend those payroll capabilities to 20 smaller countries in a cost-effective way. By bringing in the international localization services in Synchrony Payroll, the bank saw a calculated blended rate of cost per employee to manage payroll trimmed by as much as 50 percent.
With localization services in Synchrony Payroll, there is the potential to cut payroll cost per employee by half while also offering better user experiences for all employees and maintaining compliance with local regulations and requirements.
To discuss how your company can cut costs and more efficiently manage its global payroll in a single solution, contact our experts here.