Professional May 2017

Feature insight - Global payroll

Global payroll challenges

Lisa Gillespie, Moorepay’s human resources services director, comments on changes ahead that will affect management of global payroll

C ompanies are poised for a new level of complexity in managing global payrolls as two major changes come into play in the next 24 months. Firstly, the UK will commence the formal process to leave the European Union (EU) and this is going to happen just when everyone is preparing for new General Data Protection Regulations (‘the GDPR’) – which is also a requirement part- way through the Brexit journey. With so many other things to think about the government’s stance has been to confirm that Brexit will not disrupt the requirement to comply with the new regulatory framework. One of my more risk-taking clients asked me the other day whether he should bother about GDPR given any breaches are unlikely to hit the courts before we leave the EU. Having mislaid my crystal ball I advised on a cautionary approach. “Your company operates across the EU and in non-EU territories so if I were you I would see the GDPR as setting the bar for compliance” was my advice. Why? Well, as the activities of many businesses that rely on personal data operate across borders, my view is that the highest level of security and consistency with data protection laws and rights will be necessary to businesses, organisations and individuals. The GDPR updates existing requirements and, as we will still trade with the EU, it makes good business sense to adopt measures which align with those countries with which we will continue to trade. Of course, it is not just the EU that will

reform their requirements; globally we are in unchartered waters where data is concerned. Having safeguards in place and understanding data obligations is more important than ever given the growing digital world. ...personal data held in payroll systems could, in the wrong hands, be exploited for Any organisation operating across international and EU borders should have a formal payroll strategy which addresses key business requirements: ● Regulatory compliance, as obligations at country level ought to be interpreted against the highest global standards to ensure a consistent approach globally to meeting compliance requirements. ● Governance and internal structures need to ensure clear data ownership and accountability are integrated with business activities and regularly audited. Breaches should be managed and also considered as opportunities to stress-test scenarios across the organisation. ● A service delivery model which is flexible and suitable in-country, particularly where local or regional challenges can affect employers’ ability to manage their reporting and registration obligations. purposes we haven’t even thought up yet

● Global-level strategies for reporting and analytics are key to ensuring country-based requirements are not restricting or dictating the quality of data. ● Data strategies should identify any technology interfaces which may be required to achieve all of these elements above. I should also remind you at this point that data, and the use of it, is becoming an increased source of paranoia, not just for ‘the man in the street’, but also all the way up to the most recent incumbent in the White House. We are living in an age in which it has been suggested (by some) that the outcome of the presidential election in the United States of America was manipulated by Russian intervention. The type of personal data held in payroll systems could, in the wrong hands, be exploited for purposes we haven’t even thought up yet. So, notwithstanding regulatory compliance, organisations need to consider their wider obligations to be much more far-reaching. Nonetheless, setting aside the scary world of misuse of data, most businesses just want to be able to pay their workers accurately, analyse pay data and provide information to local or regional authorities in compliance with their obligations. Brexit is definitely going to be interesting. I mentioned earlier that I couldn’t find my crystal ball, but what I will say is be prepared for some administrative challenges if you work in payroll or human resources. This is because 29 March 2017 marked the dawn of a new era. I can say for sure, nothing in our professional world will ever be the same again. n

43

Issue 30 | May 2017

| Professional in Payroll, Pensions and Reward |

Made with FlippingBook - Online catalogs