Global payroll survey highlights

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As companies emerge globally, they are becoming more ‘borderless.’ But is the management of global payroll keeping up with local regulatory and operational changes while considering the long-term needs of the business?

Why should companies care about their global payroll model?

Organizations are continually looking to expand and improve their global operations and service offerings.

Many businesses often respond to the initial wave of expansions and acquisitions by working with in-country payroll providers as needed but with little or no connection established with the company headquarters. This has led to a challenging environment for many companies due to the lack of vendor governance, compliance, process standardization and reporting.

Further, companies can be hit with million dollar fines and penalties from taxing authorities if they don’t complete tax reporting procedures correctly and in a timely manner

Regional delivery models represented an early attempt to address the issue by consolidating vendors and access to information. However, cost-cutting pressures have led to further centralization and a higher degree of standardization.

Can a single provider, regardless of the service delivery model, support the payroll needs of a global enterprise in 90+ countries?

Our survey addresses the experience of organizations with delivering payroll either in-house, via external vendors, or a hybrid of both. It was designed to understand the operations and processes currently in place in multinational organizations and to explore what might be needed in the future.

The fact remains: organizations, both public and private, need to pay their employees in a timely, accurate and compliant manner. The question then is what are the best practices for multinational organizations, especially those entering new or perhaps emerging markets?

We address these questions and reveal that some global organizations are moving to adopt a standard approach. Other companies, however, show a strong reluctance to transform payroll operations to adopt a single global approach.

Whatever the company’s stance, payroll represents a vital function to the organization and its reputation cannot be understated.

As organizations debate whether to run payroll in-house or with an outsourcing provider, there are a number of questions to consider:

  • Your business strategy
  • If you operate an in-house model
  • If you have a hybrid model
  • If you have a fully outsourced model

Our survey will help you determine the right questions to ask within your organization when assessing the business needs of your payroll model. It also addresses expectations of the payroll outsourcing market.

Contacts


Global

Stuart Steele
Partner, Human Capital
+44 (0) 20 7951 8405
EY UK and Ireland

Jeffrey J. Brown
New York +1 212 773 0780
Boston +1 617 375 3702
Ernst & Young LLP

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