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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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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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