This document discusses challenges that multinational companies face in managing a global workforce and how outsourcing key HR functions can help address them. It identifies four main challenges: 1) international growth and language/compliance issues when expanding to new markets, 2) administration of large amounts of employee data from different locations, 3) lack of a unified HR/payroll system, and 4) difficulties focusing on strategic priorities with complex, decentralized HR operations. The document argues that outsourcing HR functions like workforce administration, global payroll, and an HR service center to a single provider can help companies streamline processes, increase compliance, and allow HR to spend more time on strategic initiatives.

1. How to Streamline Global
Employee Management
SOURCES
1. HR.BLR.com | HR Is Overwhelmed by the Volume of Employee Data, Suggests New Study
2. Wells Fargo | Despite Weak Global Economy, U.S. Companies Still Turning to International Markets for Growth
3. Rosetta Stone | Language Means Business
4. Ernst & Young | Global Payroll: Myth or Reality?
5. Gartner | 2016-2018 Strategic Roadmap for HCM Technology Investments
6. CloudPay | The 7 Hidden Costs of Decentralized Global Payroll
7. Gartner | How and Why to Move to the Cloud
8. Forbes | HR Should Own Organizational Effectiveness
9. Boston Consulting Group and the World Federation of People Management Associations
From Capability to Profitability: Realizing the Value of People Management
10. JobScience.com | 6 Top Reasons for Outsourcing Human Resources Functions
w w w. o n e s o u r c e v i r t u a l . c o m | P | 9 7 2 . 9 1 6 . 9 8 4 7 | i n f o @ o n e s o u r c e v i r t u a l . c o m
M U L T I N A T I O N A L C O M P A N I E S F A C E 4 U N I Q U E C H A L L E N G E S
M U L T I N A T I O N A L C O M P A N I E S A R E L O O K I N G F O R A U N I F I E D S O L U T I O N
H O W D O Y O U G E T A T R U LY C O M P R E H E N S I V E S O L U T I O N ?
R E A S O N S H R O U T S O U R C E S | T O D O W H A T T H E Y D O B E S T
WORKFORCE ADMINISTRATION (WFA) & GLOBAL PAYROLL
Two major challenges for HR to overcome are data quality and accessibility as
HR professionals face down big data in an effort to manage human resources data and
impact company performance.1 For global enterprises, this is especially complex.
INTERNATIONAL GROWTH & EXPANSION
Plan to grow their business in countries
that speak a different language. 3
71% of Companies
Agree that international expansion
is needed for long-term growth. 2
87% of U.S. Companies
W H Y N O T D O I T Y O U R S E L F ?
TOP REASONS FOR IMPLEMENTING
A CLOUD HCM SUITE 5
GLOBALIZED/CONSOLIDATED HCM
PROCESSES/SINGLE SYSTEM OF RECORD
INCREASED WORKFORCE
EFFICIENCY/EFFECTIVENESS
IMPROVED HCM PROCESSES AUTOMATION
STANDARDIZED HCM PROCESSES
TOP REASONS COMPANIES
OUTSOURCE SOLUTIONS 10
TO IMPROVE ACCURACY
TO IMPROVE COMPLIANCE
TO SAVE MONEY
DUE TO A LACK OF
EXPERIENCE IN-HOUSE
TO TAKE ADVANTAGE OF
TECHNOLOGICAL ADVANCES
18%
23%
18%
22%
IMPROVED QUALITY OF REPORT
AND PERSONNEL INFORMATION
REDUCED COST OF HR OPERATIONS
18%
26%
3.5XRevenue Growth
2.1XProf it Margins
COMPANIES THAT ARE HIGHLY SKILLED IN CORE HR PRACTICES EXPERIENCE ⁹
Only 17% of organizations characterize their current
self-service capabilities as advanced. 4
WERE NOT CONSIDERING ADJUSTING
THEIR PAYROLL MODEL
ONLY CONSIDERED OR ENTERED
INITIAL DISCUSSIONS
ORGANIZATIONS MOVING INTO NEW MARKETS 4
64%
LANGUAGE & COMPLIANCE
LOCAL DATA & TAXES
01
02
Don’t know how its workforce potential is
affecting the company’s bottom line.1
77% of HR Professionals
Are satisfied with the way their organization
manages talent data.1
18% of HR Professionals
ADMINISTRATION OF DATA IS PROBLEMATIC 03
04
TO FOCUS ON STRATEGY
HR professionals spend just
15% of their time as a strategic
business partner. ⁸
Improved ability to evolve
HR processes in response
to market conditions.
Improved employee
retention and motivation
(reduces cost.)
Increased efficiency
of HR processes.
Better employee
experiences and improved.
perception of HR and
the company.
B E N E F I T S O F A N I N T E G R A T E D H R C L O U D S Y S T E M 7
B U T W H A T T H E Y A R E S T U C K W I T H I S M E S S Y
10-10020-30% 30% 78%
Large Organizations
report many ad-hoc systems.
5
Organizations
that deploy HCM cloud suites
still source HCM requirements
via point solutions.
5
Global Organizations
report having a global HR
system of record.
5
Global Organizations’
current payroll outsourcing
model varies by geography.
4
Accumulation of disparate overlapping technologies makes
for a highly complex HCM technology landscape.
TECHNOLOGY
LICENSING
CUSTOMIZATION
HARDWARE
IMPLEMENTATION
TRAINING
SUPPORT
COMMUNICATION COSTS TO LOCAL VENDORS
SHADOW LABOR
PAYROLL ERRORS, ESPECIALLY OVERPAYMENTS
LACK OF INSIGHT/POOR PERFORMANCE
MANUAL REPORTING
IT SECURITY COMPLIANCE
PAYROLL FRAUD
HELP DESK & GLOBAL PAYROLL SOLUTIONS ARE COSTLY TO BUILD AND MAINTAIN
International Payroll Solutions
Can Have Hidden Costs .6
Help Desk Cost Considerations
Are Numerous
80%
53%
The Ingredients for a Seamless
whole to provide Support for a global
workforce and international payroll.
The top challenges to implementing global
payroll are cost & compliance. 4
SINGLE POINT OF
CONTACT HR
SERVICE CENTER
WFA SERVICES
ON A GLOBAL
PLATFORM
GLOBAL EMPLOYEE
DATA MANAGEMENT
SUPPORT
INTEGRATION AND
SUPPORT OF HR AND
PAYROLL THROUGH
SHARED SERVICES
Compliance is costly. Along with
the time associated to fix errors,
employee confidence is lost.
Regulatory and local complexity
means that payroll will increasingly
be decoupled from HR systems.
Report frequent day-to-day errors, including incorrect
tax withholding and under-or overpayments. 4
53% of Companies
The exception is an organization with a vast number
of employees headquartered in-country. 5
80% of Companies