Payroll is not a one-size-fits all solution. Every country operates under distinct and complex payroll laws and regulations. Likewise, every organization is structured uniquely, with its own business models, expansion strategies, and workforce composition. Given these realities, how can traditional payroll providers expect companies, like your own, to conform to outdated, rigid systems?
The Complexities of Global Operations
Despite the name, global payroll isn't global at all. Instead, it consists of a network of local payroll systems stitched together to form your unique payroll framework. No two countries operate under the same payroll rules. Local labor laws, tax regulations, and reporting requirements all create a complex landscape that your organization must navigate.
If your business is operating in multiple countries, you are likely faced with unique challenges. You may have legal entities in multiple countries, grow through acquisitions and bring on employees from entirely different payroll systems, or you may be expanding organically into new regions. Each scenario demands customized payroll solutions that align with local regulations.
Different Approaches to Payroll
Since every country has different policies and every company has unique needs, payroll can be structured in various ways. You may choose to manage payroll in-house through a payroll engine or through manual calculation. You could outsource payroll to a managed provider for multiple countries or an in-country payroll provider for one. You may even have employees in countries without a legal entity and work with an Employer of Record (EOR) to handle payroll, compliance, and payments.
Businesses who operate across multiple countries will often utilize a combination of these payroll methods and the method you choose in each country or region should be driven by your unique needs in that jurisdiction. More organizations are seeking to bring payroll together globally, and if your organization is also on this path, you must determine what payroll approach works best for your organization, whether it’s integrating global payroll platforms, outsourcing specific regions, or leveraging a hybrid model.
The Shift
While flexibility is key for today’s multinationals, few payroll providers have evolved their models to better support complex global payroll structures. Your business may have been forced to conform to legacy systems and the traditional approach to managing payroll across multiple countries. Many legacy systems fail to accommodate diverse global requirements, leaving businesses juggling multiple providers with no unified view of your payroll.
With disparate payroll systems come disparate employee experiences. This is challenging for the employees, but also for the payroll teams that support them.
Employees-First Approach
At the heart of your organization is your employees and payroll teams are central to one of the reasons why employees are at work: to receive a paycheck. How employees are paid, the flexibility of their payroll options, and the transparency they receive all impact morale and retention. Payroll is a tool to empower employees.
A modern payroll strategy ensures not only that employees are paid accurately and on time but also takes into account employee preferences for how they receive their pay. In recent years, new options have emerged, including earned wage access, payroll cards, or flexible payment structures. When employees feel confident that you care about their pay, trust is built, engagement grows, and turnover decreases.
The Future of Payroll
Global organizations have numerous options for payroll solutions. However, selecting the right one requires a clear understanding of your unique needs and finding a provider that aligns with your goals. The right payroll partner can help businesses achieve compliance, empower scalability, and enhance an excellent employee experience, all without compromise. Utilizing a payroll system that supports multiple ways of working can ensure that your business can evolve and scale without unnecessarily complex operational burdens. By investing in a payroll system that adapts to your workforce, you can establish a solid foundation for future growth and long-term success.
Payroll is a vital component of business success and employee satisfaction. With UKG One View, businesses can build resilience, reinforce employee trust, and create a seamless payroll experience tailored to your unique workforce needs.
Are you looking for a global payroll solution that's built uniquely to power your team? Talk to us today.