Global payroll implementation is the process of centralizing a company’s payroll systems
around the world with one provider to standardize data, streamline processes and ensure
global compliance.
The implementation process typically spans over several months, depending on
the scope of the project, which may include HRIS integration or HCM integration, and
requires close collaboration between the company and global payroll provider.
How to achieve global payroll implementation success
Although most of the technical aspects of implementation are handled by your
payroll outsourcing partner, your internal project team will need to understand the
importance of communication and collaboration to get ahead of change management.
Continuous, centralized communication and collaboration
Centralizing global payroll typically includes a lot of people. With projects
and subprojects divided by country or region, it is easy to get overwhelmed
and lose track of the deliverables from your payroll provider.
This may sound trite, but when it comes to global payroll implementation,
communication is key. Your process should include regular project meetings to
bring every team member together to review progress against goals and
milestones—for each and every country that will be included in the
implementation. This keeps everyone aligned and on track, while also allowing
you to head off any challenges as they arise.
Top-notch change management
Overhauling your payroll system to meet global needs will impact most of your
workforce. From top-level human resources and accounting personnel right down
to hourly workers using your timekeeping system—everyone will feel the ripples
of change.
Many companies underestimate the impact of these changes on productivity and
engagement. Stay ahead of the curve by keeping everyone in the loop. Roll out
training and support programs alongside your payroll program to ensure that
all features are understood from the get-go.
How you approach change management will say a lot about the success or failure of
your project. With something this big, you need everyone on board to see the intended
effects of the change all the way through the organization. What will your employees
need from you during this transition?
- Clear and regular communication (we’ll say it again!)
- Training and support
- Standardized procedures and consistency
The role of HCM integration when implementing payroll
Properly integrating global payroll with your HCM
or other
global HR technology can help your company:
- Ensure compliance with a single source of employee data
- Increase ROI through better user adoption of your HR systems
- Reduce inefficiency by streamlining global processes
- Save time by minimizing repetitive data entry
But proper payroll and HCM integration requires clean and accurate data
transfers—a difficult achievement for some multinationals. Why? Some companies
customize their HCM data fields by country or region based on local employee
data requirements. And these customizations can interfere with data
standardization at the global level, creating a more complex integration
process.
You can simplify global payroll integration by avoiding HCM data
configurations whenever possible and working with an international payroll
provider that
offers pre-built or country-specific integrations with your HCM.
Best practices for payroll implementation
You need an experienced provider for your global payroll implementation. But
how can you judge a multinational payroll provider’s experience? Start by
asking about their implementation success rate.
Additionally, ensure they follow these best practices for payroll
implementation.
Prioritize countries with largest employee population
The larger your employee population in a certain country, the more complex the
payroll transition will be. Prioritizing your biggest countries (population-
wise) will help you knock out some early wins. It will also help you to
quickly establish a global standard that can be rolled out across the rest of
your locations.
Take a phased approach
If your payroll vendor pushes for a “big bang” approach to implementation, that’s a
red flag. When too many regions undergo implementation at the same time, you
increase complexity and your risk of non-compliance. By focusing on a few countries
at a time, you and your provider can reduce the risk of critical mistakes when navigating
in-country nuances like currency conversions and data and reporting requirements.
Time things wisely
When it comes to large-scale payroll projects, timing is key. Ensure your new
payroll provider avoids mid-quarter deployments to avoid unnecessary
complications and errors when reporting to local tax authorities. You’ll also
want to align tax quarter and year-ends whenever possible.
Cleanse and standardize data before conversion
At many multinationals, HR and finance teams share ownership of payroll data
leading to issues with version control and reliability. To reconcile data discrepancies
and initiate a plan for global standardization, your payroll provider will need to work
closely with your treasury, finance and HR teams. Ensure your provider comes to the
table with a collaborative and transparent process for aligning and signing off on
global payroll standards.
With the right partnership, global payroll transformation is achievable. Collaboration
with an experienced team of global payroll experts and comprehensive change
management help ensure a smooth implementation process and achieve desired
outcomes.
Ready to learn more about how your company can ensure a successful global
payroll implementation? Get in touch to speak with one of our global payroll experts
who can walk you through best practices for implementation success.