Multinational organizations that are embracing global payroll are reaping the benefits that come from greater operational efficiency, fewer administrative headaches and greater access to crucial information. The need for transformation increases the more organizations grow globally.
Gartner’s 2018 Market Guide for Multicountry Payroll Solutions highlights underlying issues multinational enterprises experience while operating a fragmented payroll model. These models result in operational complexity in data management, poor customer experience, high operational costs, and more.
It’s estimated that by 2022, 40 percent of global midmarket and large enterprises will have invested in global payroll solutions geared towards consolidating international payroll. Multinational companies are moving toward a global payroll solution in large numbers and here are three triggers that are driving the move.
1. Mergers and acquisitions
M&A activity is also causing multinational organizations to seriously consider a global payroll solution. With every merger or acquisition comes heightened anxiety across all involved organizations, and the last thing they need is for their impacted employees to have issues with their paychecks because of the multifaceted and complicated integration of disparate payroll systems. An existing global payroll solution can help reduce that risk.
2. Corporate growth and global expansion
As companies grow and expand, becoming truly multinational organizations, they need to be able to scale and support more with the same amount of people. They must be nimble and improve their internal business process. As the organization grows and expands globally, working with multiple in-country service providers can become quite cumbersome, thus making a more efficient global payroll solution more intriguing.
3. Increasing security standards
Around the world, there is a significant push for greater security of personal information, including payroll data. Additionally, there are statutory requirements that are driving organizations to consolidate what they are doing so they can stay on top of those requirements.
Most multinational organizations are still operating their payroll operations in a shared service model. However, whether it’s because of organic corporate growth, mergers and acquisitions or increasing security standards, many of those same organizations are at the very least considering a move to more operational efficiency, fewer administrative headaches and greater access to information that comes from a global payroll solution. Global payroll is transforming business operations of organizations around the world.
iiPay and our centralized process delivers a global and scalable payroll solution. Our centralized process empowers clients to minimize operational impact and streamline costs among other significant benefits. Learn more about this topic in a recent article, 5 Frequently Asked Questions About a Global Payroll Implementation.