Coordinating payroll on a global level can often be a daunting task. This session will focus on key success factors and offer tips and strategies to help ensure that your organization eliminates risk in coordinating global payroll.

1. Global Payroll Implementation:
The Path to Implementing Global Payroll for
International Companies
Chris Bradshaw
VP, GlobalView Implementation (Americas)
Email: Christopher.Bradshaw@adp.com
Phone: +1 (847) 347-5972

2. Agenda
Overview:
Coordinating payroll on a global level can often be a daunting task. This session will focus on
key success factors and offer tips and strategies to help ensure that your organization
eliminates risk in coordinating global payroll.
Global Payroll – What is it?
Defining your Global Payroll Strategy
Implementation Strategy
Summary
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3. Global Payroll: What are we talking about?
The business process, best practices and
applications used to calculate the components of
pay, support the distribution of funds and maintain
regulatory compliance.
It includes the following activities: data capture and
control; calculation of salaries, wages, allowances
and deductions; editing and dispatching; third-party
declarations; and legal maintenance.
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4. The average multinational had 10 different
payroll systems plus 10 additional HR systems
across their business.
ADP Research Institute Study

5. Global Payroll Initiative Challenges:
Global Payroll has historically been a highly decentralized operation with no
consistency from region to region, gaps in controls, and redundancy in resourcing
and payroll platforms.
• Vendor & platform
consolidation.
• Audit, tax, statutory, and
technology controls. • Contract administration –
driving consistent pricing
• Service Performance
structure and value.
metrics (globally & locally)
• Multi-National Corporation
• ISAE 3402 Compliance
(MNC) Partnership – doing
Harmonization business with a global
provider.
Solution
Consistency
• Extension of shared • Configuration vs
services strategies Personalization
(internationally). • Enablement of future global
• Global service consistency / cost initiatives.
World wide coverage. • Mobilization of data for
• Global Product Design. decision making.
• Consistent User Experience.
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6. Typical MNC Global Payroll Situation
Current State - Not Globally Potential Future Strategy
Integrated
Current State Future State
• Multiple vendors/service delivery
• ONE Global Contract
models
• ONE Global Relationship Manager
• Multiple vendor contracts
• Consistent SLA’s
• No consistent SLAs
• Consistent Key Performance Indicators
• Limited economies of scale
• Consolidated management reporting
• No consolidated reporting
• ISAE 3402 Compliance
capabilities
• ONE Integrated & Hosted Global HR/PR
• Inconsistent global data disaster
• Tech. support /interfaces managed by
recovery
ADP
• International compliance risk
• Domain experience to provide speedy,
• No insight into upgrade costs or
low risk implementation
timing
• Single PEPM cost structure by country
• Inability to budget for global HR/PR
• Service & Technology enables Regional
support costs
Shared Service Center Model
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7. You’ve Decided to Go Global…
Now What?
It’s time to
start
planning!
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8. Global Payroll Strategy
Defining a global payroll strategy – PRIORITY 1
Business Case / Executive Sponsorship
Service Model Considerations
International / Cultural dynamics
Employment contracts / Work Councils
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9. What’s are your companies objectives / goals?
Global Governance Support Model
Defining your challenges and
needs globally can often be a
difficult maze to navigate.
Single point of
Improved
service and
expertise
accountability
Focus on narrowing
Lower down to achievable /
operational &
Improved measurable objectives.
technology costs
Compliance
* Depending on situation
outcomes may not lead to
lower operational costs
“My CEO & CFO demand a single system of
record for HR data.”
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10. Defining a global payroll strategy
Define you current state
What is your company mission, timelines, objectives / direction?
Lay out an action plan to support your objectives
Review objectives with stakeholders to ensure alignment
Gain engagement towards completing objectives
Benefits of global payroll strategy
Clear vision of purpose and goals / objectives
Proactive working environment with defined expectations
Ability to measure performance while making the appropriate changes when required
Increased efficiency in operations
Provides a platform to develop consensus among team members, clarify of direction of
work and provide an understanding of one’s self in the process
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11. Business Case / Executive Sponsorship
I. Gather Data
Identify your total cost of ownership (visible & hidden costs)
TCO analysis should look at the combined costs of payroll, time and attendance, HR data
administration, technology, and health & benefits processes.
II. Analysis and Benchmarking
Identify opportunities to improve processes (value add) and cut costs.
Benchmark your data to establish comparison within the industry.
III. Determine future scenarios
Document “As-Is” and “To be” state options
IV. Implement the best option
Present your recommendations to gain Executive sponsorship / support
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12. Importance of Data Collection
Compliance – understand compliance objectives and challenges
Business objectives – align with business direction globally, regionally, and locally
Identify potential risks and areas of weakness and non-compliance
Technology solutions align to meet the business strategy and need
Innovation – agile development & adoption
SaaS and Cloud based solutions
Consumerization of enterprise applications (mobile, analytics, search, social)
Data tells your story and helps you determine what direction to go
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13. What data is important?
Costs – systems, vendors, time and labor, HRIS, Payroll calendar – deadlines and holidays
support resources = translate into cost per payslip
or employee
Required reporting – monthly / quarterly /
annually
Fiscal year
Wage type elements
Currency
Deductions
Pay frequency
Work / Pay rules
Employee counts by location
Taxes – EE / ER
Unions / non-unions and special pay rules for each
Record Management and retention rules
Global Mobility services
Data privacy requirements
Banking and funding processes / requirements
Pension plans (if applicable)
Interface requirements
Expats / Inpats
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14. Important Global Payroll Considerations:
Our Business Reality
• Legal, political and economic framework drive
differentiation and uniqueness
Cultural • Workflow / Approvals
Adaptations • Chain of command
• Data privacy
Legislative
Currency
• Euro zone conversion Nuances
• 5th decimal
• Identity management (ID#,SSN)
• No decimals
• Over time, absences, leave quotas
• Client need for currency
conversions (expats, etc.) • Data privacy
• “Benefits” vs “Entitlements”
Language Compliance
• Product & Service • Data security
• Service Centre support to clients • Tax codes / taxation regulations
• Local Scripts • Social contributions
• Multiple languages per country • Country practices
• “Global” language
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15. Service Model Considerations
Should complement your global strategy
Shared Service
Local Service
Outsourced Service
May not need to be the same everywhere
Start preparing early
Define “as-is” processes / workflow’s
Consider time zones in support models
Consider local expertise vs shared expertise
Language requirements
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16. International Considerations
Lack of International Payroll experience
Standardized business practices and policies
Paying employees accurately and timely
Compliance with local statutes and regulations
Standardized reporting
Culture – awareness of culture is becoming more and more important both in requirements
as well as getting a global solution delivered
– Embrace other cultures
– Schedule calls and meetings at appropriate times (be flexible); know the time of day when
greeting those around the globe
– Acknowledge local customs and be willing to share your own
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17. Employment Contracts and Work Councils
Need to include:
– Compensation
– Local Collective Agreements
– Benefits
– Payroll timing
– Other local requirements
Special circumstances for acquisitions or divestitures
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18. The Change Management Challenge
– Utilize industry best practices to support major change efforts targeted at increasing
adoption and minimizing disruption to the organization
Conceptual
Assessment Development Implementation
Design
Identify Change Understand Define Execute Work plan
Volume and Requirements
Determine Size and Contingency
Complexity Capacity Validate Delivery Planning
Define Success Approach
Define Degree of Readiness Check
Integration Build Team to Build Work plan
Lessons Learned
Required Support the
Decide to Support Change
Change Commit to
Identify Delivery Business
Channels
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19. Training Strategy
Training objectives:
1. Establish the guidelines for effective and relevant training delivery, using a detailed training
needs analysis as the basis for determining the most appropriate mechanisms for delivery.
2. Define responsibilities, agreed training programs, delivery dates, facilities, and resources.
Example Approach:
During phase 1 ‘Project Preparation’ for any country project training is delivered to the project teams.
Key Content: Basic terminology, navigation, personnel administration and global payroll concepts.
Prior to Testing, key subject matter experts are trained to prepare for their role in Testing.
Key Content: UAT test scenarios, interfaces and reporting, year-end, testing process.
Prior to go live training delivered to key subject matter experts (end users via a train the trainer approach – note: in some
cases exceptions can be allowed to train smaller power user populations) on how to use (and do a final validation of) the
solution as it has been configured and tested.
Key Content: Data entry, interfaces, reporting, payroll processing => end to end business processes.
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20. Global Implementation Strategy
Developing a comprehensive global rollout strategy is a sophisticated exercise
Evaluate your implementation options against your global business objectives
Determine the corporation appetite for how long it takes to reach the defined business objectives
Implementation
Advantages Disadvantages
Strategy
The wheel is invented twice (at least); Risk of non-reversible
Less resistance within the company configuration, due to lack of global considerations during first
Individual projects - implementation
countries
Optimal consideration of country specific requirements Business process integration is significantly more difficult due to
(Localization) incompatible solutions.
No central coordination necessary Consolidated reporting very difficult
Template developed globally (Globalization) Consideration of all requirements in one template more difficult
Global Template – Leverage full integration benefits (when complete) Less flexibility to support country specific requests
Local rollouts
Adoption / Engagement higher due to involvement early in the
Political resistance
process
Template developed globally (Globalization) Requires highest degree of sponsorship and adoption
Global Template - Large amount of change for the organization - increased Change
Higher consistency, uniform processes and functions
Simultaneous Launch Management required.
Faster implementation; quicker to achieve efficiencies,
Requires highest amount of resource commitment
compliance and global reporting
There are three potential approaches for implementing GlobalView globally:
1) Implementing individual projects / countries
2) Creating a globally developed implementation ‘template’ with local rollouts (Phased / Staggered timeline)
3) Simultaneous Launch – commonly referred to as “Big Bang”
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21. GlobalView Implementation Approach
ADP GlobalView utilizes a powerful Product and Services Consulting model which leverages industry best
practices, proven market tools and ADP proprietary solutions to deploy high quality solutions with the
understanding of the service model the client will be operating within to sustain a long-term relationship with its
client.
•Established •Local and Global PY
framework for knowledge
performance metrics •Regulatory
•Client centric compliance expertise
relationship focus
Global
Service
Consulting &
Management
Expertise
Global Project Go Live &
Blueprint Realization Final Prep
Prep Prep Support
Industry
Rapid
leading &
Transition
proprietary
Model
tools
•Template based •Accelerated delivery
deployment drives model
standardization & •Industry standard /
consistency flexible framework
helps global teams
during transition
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22. Implementation Methodology
Six Steps to Success
Phase 0 Program Preparation
(Global)
Global readiness
Phase 4 Final Phase 5 Go Live and
Phase 1 Project Preparation Phase 2 Blueprint Phase 3 Realization
Preparation Support
Create readiness in Finalize design and System configuration Parallel Run testing First Payroll run
country specifications based on and developments Cut Over decisions Second Payroll run
Client's requirements requirements Extractions
Planning and workshop Mapping requirements System & User
schedule Acceptance Testing
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23. High-Level Implementation Timeline
Phase 1 Phase 2 Phase 4 Phase 5
Phase 3 Realization
Project Preparation Blueprint Final Preparation Go Live & Support
One Country 2013 2014
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
Global Prep
Blueprint
Realization
Final Prep
Go Live &
Support
Deployments structures
established globally for
program view and
locally for tracking to
timelines
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24. Key Client Roles
Sponsorship
Project Manager (Project Governance)
Manages delivery of project against the project schedule
Delivers reporting on status, risks, issues and changes to Project IT
steering committee and country project status meetings Management ADP
Global Payroll Owner
Develop/communicate/foster global payroll strategy
Establish project priorities and approve rollout schedule Configuration /
Lead Consulting Integration /
Testing
Regional Payroll process owner
Participates in relevant Blueprint sessions
Executes process during test cycles and provides input to
processes' quality/issues
Sponsorship
Payroll SME
Validate requirements for local country Project IT
Participates in execution of all phases of testing Management
Client
IT Programmer (GV Interface to client source system)
Producing data from the client source system (for HR
SOR/GV Interface & legacy data conversion) Regional Business
Global Payroll
Identify and support resolution of interface & data Leadership Process Expertise
conversion issues, formatting, and mapping
IT Infrastructure Specialist
Connectivity, SSO, User Access, System Access,
Architecture
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25. Common Risks / Pitfalls
Resource constraints – lack of understanding of level of commitment required
and full view into other organizational priorities.
Lack of local knowledge and / or adoption
Cultural differences
Opposition from work councils/unions
Integration with 3rd Parties (planning / coordination)
Perception of lost functionality
Choosing the wrong service model
Lack of Global Project Management
Legacy Data Quality / Conversion
Scope Creep
Change Management / Communications
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26. Best Practices – Summary
Understand your current state and objectives
Nail down global vs local requirements with regional buy-in if possible
Functionality
Service Level
Focus on “Must Haves” and global consistency
Business case / ROI and budget calculations have been completed
Recognize that TCO and ROI can vary depending on the country / region
Gauge the change management and communication strategy based on
company culture
Choose a reliable partner
Set realistic / achievable goals, timelines, and budgets
Document roles and responsibilities
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27. Best Practices - Summary
Know your approval process
Value proposition is aligned with leadership and business needs
Implementation process is well understood
Start with “Quick Win” countries
Service model is understood and aligned with organizational needs
Retained organization has been factored into ROI and business case
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28. Questions
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29. Thank you.