Identifying challenges in your global payroll process can help you determine solutions to make the process easier, enhance compliance, and save resources all over the world. Here are the top challenges many companies face when managing a global workforce:
Technology
Payroll technology should simplify payroll for companies, but often falls short for a global workforce. Many systems are not integrated with US payroll, don’t offer global reporting, and can’t manage compliance in other countries. Utilizing payroll technology that can aggregate your global workforce, provide global reporting across all countries and currencies, and help you maintain compliance is vital to your success overseas. If you are looking for a new global solution for payroll and compliance, make sure it meets all of the criteria for a global workforce.
Using Local Providers in Each Country
When you are expanding into a new country, it is very important to follow the customs, language preferences, and employer requirements in that country. Many companies expanding overseas utilize local providers to manage payroll, but then find their payroll provider can’t deliver reporting or compliance updates, there can be language barriers, and this can cause operations issues. If you are operating in many countries, the lack of real-time visibility and reporting for your global payroll can cause compliance errors, limit your ability to make global decisions, and can impact your bottom line.
Reporting and Compliance
Global payroll reporting is very important for international companies to track and manage their global workforce. Lack of payroll data and visibility can lead to many issues like payroll fraud, compliance mistakes, and violations of local requirements. Using a payroll technology with customized reporting ensures that you maintain compliance in each country, allows your leadership to view trends, spot discrepancies, and make organizational changes based on real-time payroll data. Compliance is another huge part of managing a global workforce, as each country makes changes to employment laws every year.
Expansion into New Countries
When you are expanding into new countries, each one has its own challenges and requirements that must be identified before you begin paying new employees. Many aspects to consider include business entity setup, recruiting and hiring new employees, ensuring compliance with specific in-country regulations, and managing payroll and HR for your global employees. Getting started in a new country requires careful planning and using a global partner with in-country expertise can make the transition a smooth one.
Data Security
Everyone talks about data security, but how do you manage your employee and customer data in a global environment? Countries across the world have made significant changes to data privacy and protection, most notably the GDPR changes in the EU in 2018. Staying ahead of privacy and data security regulations helps keep your organization compliant, while giving your employees and customers confidence that you are invested in the protection of their personal data. Using secure payroll and HR technology for your global workforce gives you access to customized reporting so you can view your global operations in real-time, spot trends, and make adjustments where necessary. Data privacy and protection for your global employees and customers is vital to your success overseas.
If you are considering expanding into new countries, or struggling with your current global payroll and operations, we can help! Get easy-to-use technology with aggregated global reporting with in-country experts in 145+ countries to help you ensure compliance. Click here to learn more