In this blog, we discuss the major drivers and trends that are driving the global payroll industry in 2022:
So, you know what to expect in 2022 and you’re preparing for the challenges ahead? Good! In this blog, we look at taking the next step and establishing a Strategy for Success to ensure you and your organization are ready for the rest of 2022 and beyond.
A Global Payroll Strategy: What Do I Need to Consider?
Your Global Strategy will be shaped by a combination of your goals and the current state of your Global Business Landscape. Goals will vary from industry to industry, and business to business, and hopefully you and your organization have given significant thought to what those goals are or should be. For this blog, we’re going to focus on the state of your global landscape, and the areas that are going to have the greatest impact on forming your global payroll strategy. We see these four key areas as the bedrock of consideration for starting your strategy:
Payroll is a
business-wide subject, and entire global population impacts and is impacted by
it. At its most fundamental level, payroll is about getting your employees paid
accurately and in a timely manner. However, when you start to consider that
your population is spread over multiple countries, each with its own unique
laws and legislation, the environment becomes more complicated. Your Global
Strategy has to allow for all the varied differences in country legislation in
every location in which your population is based.
To address this in
your Strategy you must start with the basics:
visible and understood or hidden in the background and managed by specialist
teams, your systems – hopefully a smooth combination of technology and process
– underpin your entire payroll approach. It’s also one of the easiest areas for
mistakes and burdensome payrolls to begin. Whether it’s old and manual
processes or technology that requires manual intervention to remain compliant,
or a thousand and one variations, getting a smooth flow between your systems
should form a core part of any long-term payroll strategy. This doesn’t mean
starting fresh every time though – your existing systems represent a major
investment of time, cost, and resources and are a great springboard to greater
things for your organization. Consider how this investment might fit into your
future goals as part of your systems considerations.
To incorporate your
systems into your Strategy, you need to consider how you want to manage your
payrolls (more on that below), and ensure they are aligned. It’s crucial to ask
if they are fulfilling the purpose for which they were implemented. If your
Strategy evolves over time, as it should, your systems need to be considered
and flexible for scalability; preventing the increase of overly manual
processes, the need for large dedicated Global Payroll teams, and the
significant increase in risk for human error, all of which lead to employee
future Strategy on a shaky old strategy foundation is a recipe for disaster,
but just because your strategy is built on an old foundation, it doesn’t always
mean you need to start again. Strategy is an evolving process; chances are your
existing strategy has gotten you to this point and may well be fundamentally
sound, resulting in an adaptation exercise rather than a total restart.
strategy is just that; how you are approaching and managing payroll today from
a high-level global perspective to ensure consistency across your Global
Landscape. That strategy encompasses some of the most important aspects that
can drastically affect your future strategy. Your existing strategy will have
been established to achieve a certain set of objectives, based on conditions at
a certain period in time, and it is important to challenge whether those goals
are still current, and if the overall strategy is a) reflective of your current
intent, and b) is going to deliver against your goals in line with your
existing systems. Your Strategy will govern how flexible the business can be,
how responsive your teams can be, and their readiness and ability to support
Global Change, making it a great foundation to spring forward from – or a
terrible pitfall if it is in poorly planned.
The simplest way to
evaluate your existing strategy is to ask two key questions:
A nebulous term,
business architecture refers to organizational forces inherent to your company.
For example, resource limitations for in-country payroll support, multi-system structure,
or decentralized offices requiring manual processes, etc.
a Strategy to deliver on your payroll vision, it is equally important to
consider the areas in which you have restrictions, as well as those where you
have strengths. This will allow you to construct a truly Global Strategy that
sets out reasonable objectives that won’t leave the business disadvantaged
against resources or gains it never had.
One of the easiest ways
to secure an appreciation of realistic business limitations is to engage with a
broad demographic of employees from all levels of the business in the planning
of your Strategy. The views and perceptions of a Head Office Executive compared
to an In-Country Payroll expert are vastly different but both important in
planning your Strategy.
By considering these four initial areas, you have hopefully gained some clarity around the areas you may wish to consider. This will help give you and your organization the best opportunity to construct a robust, compliant, and resilient Global Strategy to take you through 2022 in line with your organization’s short, medium, and long-term goals.
If you’d like to learn more about establishing a
Global Payroll Strategy, feel free to contact us at iiPay.
What sets us apart? Here are four key areas of focus that have enabled us to become the world’s leading cloud-based payroll services company.
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