4 Ways of bridging multi-country payroll gaps

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Picking the right payroll solution for your multinational organization can sometimes feel like an impossible decision. It becomes a balancing act to ensure that the needs of the stakeholders are equally considered with the bottom-line benefits for the company. Not an easy task as these goals are rarely fully aligned.

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  • Employee population
    Payroll frequency
    Number of countries
    Compliance requirements – auditing pressure – risk
    Multiple systems
    Size of country
    Functionality: more than payroll
  • There may well be many gaps in your initial analysis, and these should be identified and put on the table – after all they are part of the Elephant! It may be that those gaps are note covered or understood as part of your fact finding, but are resolved as part of the programme to deliver MCP.
  • Drive down cost
    User experience & transactional efficiency
    Intuitive, contextual and uniform web-enabled user interface, with minimal process steps for faster transactions
    Improve HR Delivery Quality
    HR process expertise
    Process design and onboarding based on HR best practices through NorthgateArinso Business Consultants
    Comprehensive process scope – integrated technology
    Full HR suite: HR Admin & Talent Management, covering both enabling and employee life cycle processes, end-to-end
    Globally preconfigured
    HR Admin & Payroll, preconfigured for 50+ countries, plus best practice-based Talent Management in 24 languages
    Integrated
    Based on a single data model and solution design, reducing solution landscape and naturally integrating HR processes
    Longevity
    Built on standard SAP HCM technology, global # 1 in HCM software
    Create more agility
    Flexible deployment
    Delivered OnDemand, OnPremise or through BPO, allowing you to determine the perfect mix of process and technology outsourcing
    Fast transition
    Proven fit-gap onboarding methodology covering Organizational, Process and Technology workstreams
  • Flexibility is a key differentiator in the partnership with our customers.
    Example of Hybrid deployment: Workforce admin in-sourced & performance management outsourced
  • A typical customer ‘disaster scenario’ is when a customer has multiple technologies installed for multiple HR processes, across multiple countries.
    As a result:
    Reporting is impossible, or very hard to do
    Analysis of HR data is virtually impossible
    Quality can not be insured
    Standardisation & compliance are impossible
    Maintenance of applications is costly
    User management is a serious issue
    etc.
    Instead, euHReka offers:
    A single technology backbone
    One Service Partner
    Integrated Data Model, across countries, processes, and deployment options
    Allowing for:
    Uniform reporting
    easier application management & updating
    fast onboarding
    cheaper operations
    etc.
  • What does standardization mean for payroll
    Deduction, wage types
    Difficult payroll frequencies
    Legal entities
    Result
    Compliance
    Education
    Repeatable process
    Control
    Less audit worries
    Good handle on reporting
    Eliminate
    At the end of the day: accurate payroll
  • Predictability around TCO
    Viability and longevity
    Uniformity and repeatability in new markets/situations
    Scale if you grow and contract
    (geographies/HR processes/depth of service)
    No need to rebuild
    Consistent quality around the world
  • Starter for 10, on 10 critical success factors
    Ownership at Board level, and business sponsorship to the project
    A vision that states clearly the functional expectations rather than aspirational blue sky thinking – i.e. agree what success looks like right at the start. This should include a drive to standardisation and utilising best practice rather than current practice where applicable
    Agreement with and support to each country as to what they will receive and how it will operate
    Build a project governance steering group that is made up of independent thinkers within your organisation that will review progress and risks to the project in a objective manner
    A communication plan that is agreed, owned, worked to and challenged
    An agreed culture/value system for the project team and its ownership within the business
    A repository for storing key management information and history as the project rolls out
    Maintain key personnel in both the supplier and your own organisations who will be fundamental to the success of the project, and do not change these at the first sign of conflict.
    With multi country stakeholders and potentially a varied team of suppliers – build project induction material so that all parties can continually challenge how they are operating and if it is in the best interest of your organisation.
    Maintain tight financial control with results determining when milestone payments should be made.
  • A phased approach rather than a big bang approach is usually the preferred route to such programmes to de-risk communities and to ensure project resources can be cost controlled for effective deployment and not spread too far or too thin.
  • 4 Ways of bridging multi-country payroll gaps

    1. 1. © Webster Buchanan Research 2010 and NorthgateArinso Managing the long tail: perspectives on handling multi-country payroll operations & globalization. NGA Human Resources www.ngahr.com/payroll Webster Buchanan’s Multi-country Payroll Summit 2010 © Webster Buchanan Research 2010 and NorthgateArinso
    2. 2. The Long Tail © Webster Buchanan Research 2010 and NorthgateArinso
    3. 3. © Webster Buchanan Research 2010 and NorthgateArinso
    4. 4. 4 MCP scenarios © Webster Buchanan Research 2010 and NorthgateArinso
    5. 5. River tree © Webster Buchanan Research 2010 and NorthgateArinso • “Accidental” solution – typically Excel • Unstable, but good enough for now • Not fit for large volumes or extensive auditing • Questionable compliance • Unfit for complicated payroll regulations • Data manually entered and maintained • Not integrated with other systems • Easy to adapt and replicate in other locations/geographies • No expert knowledge required
    6. 6. Bamboo jetties © Webster Buchanan Research 2010 and NorthgateArinso • Built-for-purpose maze of non- connected local solutions • Workable solution, yet unreliable • Difficult to maintain • Fit for low to medium payroll complexity • Difficult to audit due to non-aligned processes • Data manually maintained • No internal integration, limited external integration • Easy to adapt and replicate • Limited expert knowledge required to maintain – what about monsoon changes?
    7. 7. Railway bridge © Webster Buchanan Research 2010 and NorthgateArinso • Large, single-country solution • Reliable and fit for high volume traffic • Capable of complicated payroll regulations • Robust and ready for extensive auditing • Labor intensive: data manually maintained, duplicated between multiple systems • Scope typically more than payroll • Limited or non-existent integration to other systems • Difficult to rebuild or replicate in other geographies
    8. 8. Spaghetti junction © Webster Buchanan Research 2010 and NorthgateArinso • Global HRIS or payroll solution, typically ERP-based • Capable of any degree of complexity in payroll regulations in many countries • Extensive auditing by external regulators • High degree of automation • Wide range of internal and external integration options • Costly to implement and maintain • Expert knowledge required
    9. 9. © Webster Buchanan Research 2010 and authorCopyright NorthgateArinso. All rights reserved. The challenge: bridge the gap between reliability and flexibility
    10. 10. HR leaders’ challenges Copyright NorthgateArinso. All rights reserved. Drive down cost Improve delivery quality Create a more agile organization • Process standardization • Transactional efficiency • Self Service adoption • Strategic outsourcing • Fast ROI • Global HR service delivery model • Deep HR process expertise • SLAs & reporting • Preconfiguration • Proven & integrated technology • Single global HRIS • Uniform technology landscape • Hybrid deployment options • Multi-device access
    11. 11. Options & complexity 11 Hosting IT resources Geographical growth HR service center Investment HR processesCustomization Standardization Upfront Recurring In-house Shared Service Center Limited Easy expansion In-house Outsourced Local Global
    12. 12. ESS/MSS Contact Management Document Management Knowledge Management ESS/MSS Contact Management Document Management Knowledge Management Compensation & Reward Performance Management Training & Development Recruitment Succession Planning Compensation & Reward Performance Management Training & Development Recruitment Succession Planning Payroll Time management Organisational Management Personnel Administration Payroll Time management Organisational Management Personnel Administration A unique platform for standardization Typical HR/IT landscapeTypical HR/IT landscapeUnified HR systems landscapeUnified HR systems landscape Self-ServiceSelf-Service HR Document & Knowledge managementHR Document & Knowledge management Talent Management processesTalent Management processes Enabling processesEnabling processes Functional blocksFunctional blocks America’sAmerica’s EMEAEMEA APACAPAC Country 1Country 1 Country 2Country 2 Country 3Country 3 Country 4Country 4 Country 5Country 5 Country XCountry X
    13. 13. Aggregator model © Webster Buchanan Research 2010 and NorthgateArinso Source: The Hackett Group
    14. 14. Standardization: do you have your ducks in a row? © Webster Buchanan Research 2010 and NorthgateArinso
    15. 15. ‘What if’ scenarios © Webster Buchanan Research 2010 and NorthgateArinso
    16. 16. River tree © Webster Buchanan Research 2010 and NorthgateArinso • What if you need to replicate this times 20? • What if your excel file gets lost? • What if your system crashes? • What if your resource quits? • What if you get a lot of volume (M&A)? • What if you fail compliance?
    17. 17. Bamboo jetties © Webster Buchanan Research 2010 and NorthgateArinso • What if you get massive legislative changes? • How do you create visibility on the data and uniform reporting? • What if you need integration to other systems? • What if you have to scale up rapidly?
    18. 18. Railway bridge © Webster Buchanan Research 2010 and NorthgateArinso • What if you need to replicate under different circumstances? • What if your long-term experts leave? • What if your local solution is no longer supported? • How do you ensure visibility across your entire employee population? • How do you ensure accuracy of both HR and payroll data?
    19. 19. Spaghetti junction © Webster Buchanan Research 2010 and NorthgateArinso So how can this possibly be cheaper, bring more consistent quality, and be more flexible? Only with a long term perspective •Predictability around TCO •Viability and longevity •Uniformity and repeatability in new markets/situations •Scale if you grow and contract •No need to rebuild •Consistent quality around the world
    20. 20. © Webster Buchanan Research 2010 and NorthgateArinso 10 Critical Success Factors 1. Culture & values 2. Management information 3. Identify key staff 4. Project induction 5. Financial control
    21. 21. © Webster Buchanan Research 2010 and NorthgateArinso 10 Critical Success Factors 6. Ownership at exec level 7. Clear functional vision 8. Country level support 9. Project governance 10.Living communication plan
    22. 22. © Webster Buchanan Research 2010 and NorthgateArinso Questions cay.gliebe@northgatearinso.com www.northgatearinso.com/payroll

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