The document discusses the challenges of implementing global payroll operations in Latin America and how Spencer Thomas Group addresses these challenges. Some key regional challenges include language and cultural differences, additional payroll runs due to different calendars and pay schedules, and more complicated personal administration processes. STG employs a team of experienced and local consultants in Latin America to navigate these challenges, ensure successful implementation and ongoing payroll operations, and minimize costly errors through their understanding of the local languages and cultures.

1. SPENCER THOMAS GROUP
Aligning intelligence with business™
By Joseph Ramos, Partner, HCM Practice LATAM, Spencer Thomas Group
Successfully Navigating Global Payroll
in Latin America
spencer-thomas.com sales@spencer-thomas.com
Now more than ever, CIOs and IT decision makers
are asked to “do more with less,” resulting in the
outsourcing of critical resources. There are many
competent payroll providers that offer leading
technology and ongoing service and support to help
meet outsourced Human Capital Management needs.
But when a company requires payroll services across
borders – whether in one geographical jurisdiction
or several – there are numerous unique regional
challenges that an experienced third-party global pay-
roll partner specializes in addressing.
This is particularly evident in Latin America where
business is rapidly growing. With traditional
outsourcing regions becoming more expensive than
ever, LATAM’s value proposition of an evolving,
affordable workforce and developing infrastructure
is increasingly appealing. Many North American and
European companies are successfully outsourcing to
resources in the region. However, the U.S. and Europe
perceive the world very differently from Latin America.
Still emerging, LATAM requires patient, culturally
sensitive solutions that are often overlooked when
expanding business operations into the region.
Objectively understanding and managing these
differences at the local level can enable companies
to capitalize on the rising level of maturity in LATAM
and effectively implement payroll operations through
Go-Live and beyond.
As a leading third-party global payroll partner, Spencer
Thomas Group (STG) successfully navigates regional
challenges to define and implement strategies that
help ensure the successful launch and ongoing
operational efficiencies of global payroll in LATAM.
Our approach begins with multi-lingual program
leadership that has lived in the U.S., Europe and
LATAM and thoroughly comprehends the culture.
We then source the RightFIT™ from our network of
hundreds of expert global payroll advisors across
LATAM to create teams with knowledge in not only
local compliance and regulations, but in the distinctive
cultural nuances that can make or break effective
global payroll operations.
“STG’s team of payroll
experts has an average
of fifteen years’
experience in the
global payroll market.”

2. Language barriers: The most obvious requirement to
effectively manage payroll pre-implementation strategy, Go-Live
and management is fluency in both Spanish and Portuguese.
But it’s not enough to simply speak the language. Having skilled,
local people on the ground that clearly understand the nuances
ofeacharea’slanguageandculturemeansthattrustandeffective
communication can be built and maintained, while friction and
misunderstandings are minimized. The day-to-day, face-to-face
nature of the working relationship between a culturally savvy
third-party partner and local resources is absolutely critical to
successful global payroll activation.
Cultural differences: Cultural events and factors have
a significant impact on the LATAM region’s productivity. It’s well
known that holidays and football matches can affect work force
availability. Less understood are socio-economic considerations,
suchasunstablepoliticalenvironments,publicdistrustoffinancial
practices, and widespread poverty that can have a costly affect
on worker performance. Daily life can be risky and challenging
for local workers. STG’s role is to anticipate these hardships,
build trust with empathetic business relationships, and propose
an optimal working environment to help ensure that local teams
feel understood and safe to maximize productivity.
Additional payroll runs: There is typically much more
payroll activity in LATAM than in North America and Europe,
where payroll can be run up to every two days vs. a bi-weekly
or monthly basis.Additionally, the monthly calendar is unique in
LATAM. This challenge requires the coordination of experienced
on-site payroll teams that can effectively manage the
increasedworkloadandstandardizekeydataelementstoprovide
operational efficiencies and accurate, actionable reporting.
Personal administration processes are more
complicated: Although the process for terminations
and maternity leave are similar in LATAM, North America and
Europe, there are significantly more steps and additional manual
paperwork to manage in LATAM. A termination that may
require four steps in the U.S. or Europe can require as many
as 20 steps in Brazil. Timeframes are also frequently shortened
and terminations must be presented to and negotiated with
local unions. A clear understanding of the regional termination
process coupled with the deft handling of a myriad a
locally-unique social variables is required to process them in a
way that helps ensure cost savings, accuracy and efficiency. The
cost of non-compliance with local rules and regulations is high.
STG applies our thorough understanding of local compliance
and cultural processes to mitigate risk.
spencer-thomas.com sales@spencer-thomas.com
For over a decade, STG has expertly guided clients with
setting a strategic course, implementing over 30 global
payroll projects in every country in LATAM.
Our LATAM payroll operations are led by a global industry
leader with 20 years experience working in the region.
We’ve assembled an unparalleled network of experienced
regional consultants selected for their ability to understand
and work in partnership with local LATAM resources.
Our teams are bilingual and report back to your team to
streamline enterprise-wide reporting for decision makers.
We understand the nuances of implementing a global project,
utilizing the optimal tools and reporting mechanisms that
enhance efficiency and promote the sharing of resources.
Our proven process integrates and automates key processes
and protects your company from unnecessary audit and
non-compliance fees.
Joseph Ramos
Partner, HCM Practice LATAM, Spencer Thomas Group
Phone: +1.407.985.8080
Joseph.Ramos@Spencer-Thomas.com
Spencer Thomas Group Delivers the Third-Party Advantage
STGemploysourexperiencedteamoftalentedSTG-Sourced LATAM consultants and streamlined operating methodology
to provide our clients with successful projects and exceptional customer service. STG’s team of payroll experts has an
average of fifteen years’ experience in the global payroll market. Our strategic partnership approach helps minimize
costly cultural errors and drives the delivery of truly effective LATAM global payroll services.
LATAM Regional Challenges Addressed by STG
To learn how Spencer Thomas Group can help improve your
organization’s LATAM operations with our superior third-
party global payroll advisory services, please contact: