TECHNOLOGY
Global payroll transformation
Lara Smart Chartered FCIPPdip, director, LM Smart Consulting Ltd, provides some of her top tips for kickstarting a global payroll transformation project today
A gainst the backdrop of a changing world, with flexible working driving opportunities to work anywhere in the world, emerging markets and business growth, global payroll is becoming more of a focal discussion at board level. There’s also a drive to ensure compliance to keep risk profile low. So, where do you start with global payroll assessment and transformation?
● enhance their skillset ● contribute to a project ● grow, learn and develop.
This could be by: ● reviewing your target operating model ● re-engineering business processes ● clearly identifying control points ● reviewing key performance indicators (KPIs) or service level arrangements (SLAs) ● case management ● analysing data quality ● most importantly, being aware of what your technology and / or service provider is doing for you. Technology is an enabler – not a magic trick. Have the right people around the table when decisions are being made. Even a small tweak to technology can mean a change to business process and can require training for people to ensure compliance and service. It’s straightforward to implement a technological solution. However, it’s not so straightforward to fix it when it’s live, or to rectify an implementation that was rushed, and had the wrong decision makers around the table that didn’t understand operational process. This can increase cost and generates frustration. Perform solid due diligence on vendors. Sales teams will sell you the world and tell you their technology can sing, dance, juggle and automate everything. The reality is that it can’t, unless huge sums of money are invested. Technology must work with business process, people, service, controls and data. Technology is a true partnership of evolution. Start with reviewing any contract of service, and ensure you’re clear on: ● termination rights
Payroll is a transferable skill that can be utilised in every country in the world (people will always need paying), but there’s a difference in skillset between operationally running a payroll and implementing one. This is where the Where do you start with global payroll assessment and transformation? opportunity for skill enhancement lies. Ensure you take the time to understand business strategy and how payroll’s objectives align to this. Consider the future of service offering to employees in terms of payments. This could be a strategy looking at on demand pay and cryptocurrency. 3. Gap analysis Develop your key insights, challenges / questions and the strategic approach to gaps. Prioritise gaps based on risk profile for business benefits. Financial benefits through cost savings will always gain buy-in from a cost- conscious business, but payroll cost saving is usually intangible. A global payroll transformation isn’t usually driven for cost saving, it’s progressed for compliance, visibility, reporting and risk. Highlight areas of opportunity with facts.
1. Discovery Start with understanding your ‘as-is’
landscape by performing due diligence on your key strategic pillars and build your situational analysis for presentation to your key stakeholders for buy-in. See Figure 1. Understand your markets. Global payroll is a standard framework in all countries but will have different local rules. Seek to understand these first, as it may shape your vision and direction around global standards. For example, money movement can’t be automated in all countries – it may be that you need a local company bank account for certain payments. Meet, collaborate and build relationships with key stakeholders who’ll support you on your journey and provide the right input – you’ll need their buy-in and support. 2. Vision and mission Vision and mission will define your ‘to-be’ at a strategic high level. This is how you’ll take people on your transformation journey. What you’ll do and offer. Make it shine! Transformations don’t just offer great business benefits, they offer people the opportunity to:
● SLAs ● KPIs
| Professional in Payroll, Pensions and Reward | June 2022 | Issue 81 34
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