actions to optimise payment processes.
unnecessary conversion fees and rate fluctuations. If a business has staff in Europe that are paid in euros, in the UK that are paid in pounds and in India that are paid in rupees, having accounts with funds in those currencies means staff can be paid from each of those pots rather than using pounds to cover all of those salary payments each month.
For payroll providers, this approach can be strengthened through a strategic hedging plan. By securing the necessary currencies in advance at a fixed rate, businesses can mitigate the risk of exchange rate volatility that could otherwise lead to fluctuating payroll costs. This stability benefits payroll providers in several ways. Firstly, it ensures accurate cost forecasting,
This proactive approach ensures the use of the most cost-effective routes and the ability to quickly adapt to changes in the financial landscape. Having funds for salary payments in the required currency reduces the need for exchanges to happen with each individual payment, helping businesses avoid
ISSUE 10 GLOBAL PAYROLL MAGAZINE By securing the necessary currencies in advance at a fixed rate, businesses can mitigate the risk of exchange rate volatility that could otherwise lead to fluctuating payroll costs. “ 04:05 I 17
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