What are the top 10 tips for a thriving multi-country payroll project?

Ten tips to make your multi-country payroll project a success

1.  Clearly define project goals: It is essential to define the project goals, both long-term and short-term. Be clear about expectations, deliverables and deadlines. Consider global goals and their impact on local processes to develop a win-win proposition wherever possible.

2.  Communicate effectively: Communication is the key to the successful completion of any project, especially in multi-country payroll outsourcing projects. It is also one of the most difficult things to get right. Working in partnerships and ensuring transparent communication with your payroll services partner and your internal stakeholders to keep track of progress, address issues and provide feedback will help address challenges in this area headfirst.

3.  Keep up with local laws and regulations: Getting payroll right involves a good understanding of the local laws and regulations in each country in scope. Be aware of legal requirements and regulations regarding payroll processing, labor laws and local taxes. Payroll is a highly scrutinized function due to the nature of the data processed and the intense regulatory pressure being applied on this function, in most jurisdictions. Ensure your partner has proven experience in operating in your key jurisdictions so that they can support you with local expertise.

4.  Partner with the right payroll services provider: Partnering with a reliable, experienced and knowledgeable payroll services provider can help you avoid errors and delays in payroll processing. Review potential payroll providers with a checklist of must-haves — such as experience in the regions you're operating in and a proven track record — and set a Service Level Agreement (SLA) to guarantee delivery on your expectations.

5.  Standardize payroll processes: Standardizing payroll procedures globally can help you streamline payroll processing and reduce errors. Ensure that your payroll service provider has a clearly defined process, including available standardized tools, templates and procedures rather than something designed for your specific needs. While every organization is unique, the payroll process is highly standardized, so you should leverage the benefits.

6.  Focus on data privacy and security: Data security is essential in all outsourcing relationships, especially in scenarios where sensitive personal data is being handled. Ask yourself if your vendor is able to provide evidence of robust internal policies and procedures for data security, compliance with data privacy laws and standards, and third-party certifications (adherence to ISO, ISAE, etc.) to provide independent assurance in this key area.

7.  Perform regular audits: Regular audits can help detect and address any issues or potential risks in the payroll process. Ensure that your payroll services provider is conducting regular audits to check for inaccuracies, inconsistencies and compliance with local laws and regulations. Seek your service provider’s support for internal audits as well and ensure this is contracted for.

8.  Handle change management effectively: Ensure that change management strategies are in place to effectively communicate the “what” and the “why” of the project. Be honest about things that may change locally and ensure that the drivers are understood, and the overall objectives (mentioned in the first tip) are appreciated. Keep track of changes and ensure that they are adequately documented and communicated to all stakeholders.

9.  Perform training: Provide adequate training to employees who will be using the payroll systems to ensure they understand the processes, have access to appropriate resources and know what is expected of them to contribute to the project. Consider how ongoing training can be arranged for new team members, and how refreshers can be organized for the broader stakeholder group impacted.

10.  Plan for the unexpected: Be prepared for the unexpected. Despite best efforts to document objectives, communicate and contain the scope, unforeseen circumstances may threaten to derail your project. Map out the main risks, together with your service provider who should not be afraid to share lessons learned and mitigation strategies for commonly encountered scenarios. Plan for contingency measures, including ensuring that your business continuity process is up to date, to ensure that even the unforeseen can be managed well.