FEATURE INSIGHT
likely to be diverse, as well as enabling employees to work how they want to in the 21st century. Other critical aspects for a global system is to be housed on a fully compliant and secure platform, provide a single truth on all global payroll or HR data while incorporating intuitive search and reporting functionality. All sensitive data fields must be fully encrypted, as well as complying with GDPR (General Data Protection Regulation) legislation or the equivalent globally. Chris Deeson: From a system perspective, an overarching cloud-based system is critical to enable consistent processes: local components can then be fully integrated and used to plug the gaps if required. While consistent systems enable consistent processes and outcomes, a hotchpotch of desktop systems cobbled together, swapping data, is a recipe for reducing visibility, consistency and compliance. Far cleaner to have a single cloud solution acting as a hub and, if necessary, integrating local software solutions to plug any local gaps. No manual intervention and global management of data and processes. When developing a global strategy, what are the most important considerations for payment delivery, HR and compliance? JD: A strategy underpins what the business wants to achieve, so whatever that goal is, the systems in place and the collection of data from each area should be sufficient to deliver on the strategy. How is the data to be used, what is it enabling? For example, in HR is it the learning and development and skills of the workforce that you want to be able to see and manage across broader territories to support the global mobility of the workforce, to support movement across business areas? Within payments, is it to be able to deliver low-cost financial visibility of international exchanges? And in compliance, is it reporting of all quality and control measures and ensuring each is effective in its own territory with as few hand-offs as possible? DM: From an HR point of view the key measure for everything should be employee engagement and trust, something which has a huge impact on transactions quickly and, wherever possible, electronically and to have
another key business area: employee productivity. Paying your employees accurately and on time is the foundation of trust in the employee/employer relationship, which is why ensuring your business develops strong global payroll systems is key to both payment delivery and HR. In addition to this, employers should consider how they are meeting changing employee expectations and demand in regard to payroll. Regarding compliance, businesses face larger and continually growing responsibilities. Just in 2018, more than 600 new labour regulations were enacted worldwide. This is only set to continue in response to the changing world of work, and we’re also likely to see the introduction of real-time reporting where governments will ask companies to share data more regularly. Ensuring that companies have adequate systems in place to address requirements is key to business efficiency and success in the long-term. ...be very clear on what that global strategy is trying to achieve, before considering the local requirements ST: Baseline transactional services must be delivered without errors therefore system integration is critical. Poorly defined processes and policies coupled with lack of integration results in staff being pulled away from strategic priorities and dragged back into the delivery of administrative services. Payroll and HR providers need to take heed of the growing demands of zero defects and first-time pass rates. HR must deliver services that comply with local labour laws and workforce regulations – a challenge that is magnified as a business expands its global footprint and employees become more fluid both in physical location as well as how they do work today and how they want to work tomorrow. HR must therefore comply with broader business regulations which are trying to catch up with how we work, such as those which would have been initially targeted towards to the ‘gig economy’ as well as ensure data privacy and security.
These regulations often have a greater impact than was perhaps intended and they often have significant HR implications due to the highly sensitive nature of HR’s work. HR also plays a valuable role in helping a company manage the change associated with developing a risk- intelligent, compliant culture – a culture where employees understand the full impact of their actions and take smart risks that are consistent with the organisation’s policies and objectives. CD: The key here is to think globally and plan locally. First, be very clear on what that global strategy is trying to achieve, before considering the local requirements. Is it appropriate to have broadly equal packages in each country, or is the aim to match the median or top 10% packages locally? Then plan locally to implement that strategy (utilising local expertise/ advice where required) to ensure full compliance with labour and market requirements in each, ideally using global software solutions for consistency. Finally, there needs to be consideration of how global mobile employees (GMEs) will be treated. If they fall under local rules while on assignment then compliance with these need to be accounted for, but at the same time the GME will require a package that takes account of their long-term residency plans. For example, are ten small pension pots accrued in ten different jurisdictions a good outcome for any party? Is it possible to implement a truly global strategy from an HR and reward point of view? JD: Yes, in terms of roles and how you would want a total reward package to be equivalent and appropriate to each country. However, in each country there may be individual allowances, or other factors of benefit that are expected, so they need to be factored in. For example, I previously held a role in charge of the global payroll processes, and an exercise was conducted for the managers in each region across the globe, Americas, Europe and Asia, to ensure the overall package was commensurate with the seniority expected of the individual. This gave balance, but did not mean everything was the same value, due to other factors such as cost of living etc. DM: It is absolutely possible to implement global objectives from an HR and reward
| Professional in Payroll, Pensions and Reward | October 2019 | Issue 54 44
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