How global payroll can boost global business
In an age where business is increasingly international and employees work in more places and locations outside of the office, can global payroll really exist? More specifically, organizations need a single global payroll platform with configuration, scalability and compliance across all sizes and locations to enable flexible global payroll management. Is this possible?
Business may go global, but salaries tend to remain very local. No matter which country you operate in, local regulations and requirements will determine salaries in that region. According to the 2021 Make the World Pay survey (https://apo-opa.co/4ixXH3T), compliance is the biggest payroll challenge globally.
“The large number of variables makes it very difficult to manage payroll in different regions under the same framework,” said Heinrich Swanepoel, head of growth at PaySpace by Deel. “Each region has different requirements. Meeting those local requirements is tricky. “
Wages inhibit global business
According to Forrest (https://apo-opa.co/3DgZY2Z), nearly half of payroll administrators experience significant hidden costs when managing global payroll. Compliance, language barriers, tax calculations, industrial relations and currency fluctuations are all to blame. However, the fundamental problem is that different payroll administrations are often fragmented by need, relying on local representatives to manage payroll in that region on behalf of the company.
While this solves some problems, traditional payroll systems are impossible to integrate and centrally manage on a global scale. Companies that achieve this have very fragmented systems, creating significant costs and other risks.
“I’ve come across many companies who wanted to expand into new geographies but then reduced or abandoned their plans due to payroll management, transparency or cost issues. This is a shame because they wouldn’t have experienced this if they were using an integrated payroll platform These questions.” Swanepoel said.
Global expansion is risky, and most companies cannot profit from cross-border expansion (https://apo-opa.co/3VK4GN7). Any advantage helps, and integrated global payroll management can turn overseas folly into victory. But what does a global integration salary look like?
Win with an integrated payroll platform
An integrated payroll system has a variety of attributes, some of which provide the foundation for more advanced functionality. Centralization can help companies reduce risk by integrating payroll data and processes. Swanepoel said that integrations allow companies to connect payroll with financial and HR systems, further reducing administrative overhead, especially as they begin to automate processes:
“Automation eliminates many of the manual checks that take time and create opportunities for payroll fraud. Integrated, centralized payroll systems exchange information with other business systems. When you start automating processes based on these exchanges, you can run continuous payroll throughout Run efficiently every month (not just the end of the month).”
Centralization through integration and automation also brings other benefits, such as standard data sets, centralized management and reporting, simplified registration, and the addition of advanced features such as employee self-service portals. Every business should pursue an integrated payroll environment, not just those looking to go global.
Fix global payroll
However, a centralized and integrated payroll system sounds a lot like a regional payroll system. These cannot meet global payroll needs. However, there is a new type of payroll system that meets global needs while enabling centralization, integration, and automation while still being flexible and affordable—the Global Payroll Platform.
“The best global payroll platforms have ways to overcome typical problems that in-house and traditional software cannot solve. For example, they monitor legislative changes in different regions and apply them to their platform, which is immediately reflected to all clients. You just This can be done using a cloud-native multi-tenant platform, where each client company accesses a secure instance designed specifically for them, so each client does not have to do anything to get updates.”
These platforms naturally combine features such as automation, a single data standard, and controlled access so that different departments can access payroll information and reports. They effortlessly cross borders and adapt to different cultures, languages and sovereign laws.
Deel is the first payroll platform to achieve these goals and allocate resources to create global payroll coverage. But there are exceptions. For example, Deel recently acquired payroll platform PaySpace to provide global payroll and record employee services on a software-as-a-service platform serving multiple geographies. This revolutionary bundling and delivery will transform the way organizations manage local and global payroll.
“A cloud-native payroll platform radically reduces the costs and risks associated with managing global payroll,” said Swanepoel. “You get a payroll system that’s tailored to the region you operate in. But there’s no disconnect because it’s all interconnected on the same platform, and it’s less expensive because you can save costs by automating processes, reducing administration, And there’s no need to chase legislative changes. If you’re paying people in different jurisdictions, there’s really no better option than using a cloud-native integrated payroll platform.”
Distributed by APO Group on behalf of PaySpace.
For media inquiries please contact Victoria Lindsay: victoria@innocomm.co.za.
About payment space:
PaySpace’s proprietary payroll technology is cloud-architected and is scalable, configurable, highly secure and easy to use, allowing anytime, anywhere access to support payroll and HR teams. It is highly secure, improves operational efficiency, and offers self-service payroll or outsourced to an in-house team of PaySpace payroll experts.
PaySpace is specifically designed to provide multi-country payroll and HR capabilities with built-in compliance to organizations of all sizes and industry sectors. It provides a single truth for payroll and HR data, as well as tools for making strategic decisions at every level. PaySpace has expanded to over 40 African countries as well as the UK and the Middle East, and is about to launch in Brazil.
PaySpace is Deel’s largest acquisition to date in 2024 and will be integrated into Deel’s exclusive payroll engine. This represents a big step towards their goal of becoming a one-stop shop for global payroll and HR.
