HRO Today, Dublin Julie Fernandez, ISG (formerly TPI)
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1 Bringing Order to Global Payroll Chaos Panel Discussion HRO Today, Dublin Julie Fernandez, ISG (formerly TPI) 15 November No part of this document may be reproduced in any form or by any electronic or mechanical means, including information storage and retrieval devices or systems, without prior written permission from Information Services Gr oup, Inc.
2 Today s Panel Discussion 2 1. Global Payroll Market Overview (15 minutes) 2. Panel Discussion (45 minutes) Trends in Payroll Outsourcing Client Objectives and Making a Business Case Top Cautions Success Stories 3. Additional Audience Q&A (15 minutes) 2
3 Growing Interest in Multi-Country Payroll Outsourcing ISG has seen a noticeable increase in interest for multi-country payroll outsourcing in recent 2-3 years, but are we as an industry able to convert that interest into successful deals? Considerations in Pursuit of a Multi-Country Payroll Strategy Benefits Reduce # of payroll providers for better procurement pricing and contract terms Consolidate interfaces to HR / GL Improve visibility and reporting of employee headcount and cost Reduce compliance and financial risk Harmonize payroll processes and improve governance Challenges Securing country-level buy in, participation, and funding Right-size outsourced scope Requires transition where payroll may currently be stable Establish an ongoing governance model Cost allocations and charge backs to individual countries vs. central budgets 3
4 Many Dimensions of a Global Payroll Strategy Pursuit of a global payroll strategy does NOT imply all countries must fit one model and one provider Payroll frequently serves as the most updated employee record in countries without an HRIS system or without integration to a global HRIS Regions direct efforts to develop shared services support and an integrated user experience for HR and other G&A activities Balance local language and regulatory knowledge with leveraged sourcing A primary objective for many companies exploring multi-country payroll solutions is to articulate guiding principles for the region or globe, based on Client s own current state, footprint, key payroll systems and providers Right-sized payroll scope Payroll provider capabilities and footprint Planned and articulated business case driving what is actionable Iterative strategy design is used to engage regional and local teams to build buy-in, secure funding and establish governance 4
5 Payroll Outsourcing Solutions Right sized payroll means there is no broad one size fits all when it comes to broad payroll outsourcing HR Outsourcing Workforce Administration Benefits End-To-End Payroll Tier I Contact Center Support Talent Management Compensation Recruiting & Staffing Payroll Outsourcing Solution Evolved Fully Managed Payroll Services Data Management (Build-to-Gross) Employee/Manager Self-Service Payroll system hosting & maintenance Traditional Processing (Gross-to-Net) System Admin & Maintenance Back-End PR System Hosting Gross-to-Net Calculations Payroll Processing Services Payroll Software or Hosted System Tax Reporting & Remittance interfaces and uploads Payroll accruals and accounting Managing compliance Special Payments / Off-Cycles Bonus Payment Calculations Check and Advice Processing Year End Tax Filings Garnishments & Liens Social Insurance Regulations Tier II Payroll Inquiries Employee Reimbursements WOTC Credits (U.S.) Timekeeping & General Ledger 5
6 Payroll Provider Capabilities and Footprint Truly understanding who does what for whom is a difficult picture to construct, as truly it depends Global heritage payroll providers are expanding services and geographic footprint Experience, platforms, and integration across countries and regions is maturing All have embedded aggregator models within their product mix for small countries Regional payroll providers are frequently identified as part of existing vendor landscape Generally serve a handful of co-located countries Cooperation and alliances among regional providers seen for responding to broader RFPs Niche payroll aggregator model specializes in services to small employee populations spread across many countries, targeting value to a client s tail countries Generally manage payroll processing with in-country partners that comply with their model to ensure aggregate payroll data and reporting Payroll services are right-sized to suit small country needs 6
7 Business Case Challenges Defining cost to your current payroll administration and the possible future outsourced scenarios, has been an elusive and exhaustive effort for many clients Clients and providers alike continue to resort to RFIs as a very flawed means of fishing for a world of global pricing Payroll scope and delivery requirements are not adequately defined in an RFI Providers offer a range of capabilities, which are described RFI fee estimates for a global laundry list of countries are of little value without more definition Market pricing for payroll services in bundled deals has been seen to fluctuate widely as clients show interest in bundled services, but explore pricing without actionable scope Go-to-market knowing what you want, for whom, and from what providers instead of broad requests for capabilities and geographic footprint Some insight both current payroll cost and estimated outsourcing cost is needed to identify sourcing opportunities that are actionable ISG clients use Mark-to-Market data to estimate provider fee ranges in a given region and for various degrees of payroll outsourcing 7
8 Multi-Country Payroll Experts Moderator: Panel of Experts: Julie Fernandez Director ISG (formerly TPI) Master Class Invitation Please join us this afternoon for a deeper dive during the Master Class on Global Payroll 14:00 16:30 Sige Marien Director, Multi-Country Business Unit SD Worx David Woodward Chief Product and Information Officer Ceridian Andrew Pearson CEO CloudPay (formerly Patersons) 8
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