Texas Payroll Conference Doing Payroll Abroad, A Primer

Transcription

1 TPC 2013

2 Texas Payroll Conference Doing Payroll Abroad, A Primer Felicia Cheek Global Payroll and WFM Advisory Practice Leader

3 Today s Agenda Insight From Global Payroll Study

4 Global Payroll Insight From the 2012 Global Payroll Performance Study Consistent Corporate Alignment is Important Global Payroll Ownership is Essential 50/50 Alignment of payroll is unique for each company. It is truly a reflection of how the company views its labor. What really matters is that corporate alignment is consistent across the enterprise. Our data shows alignment alone does not influence payrolls ability to be a Top Performer 34% Top performing payroll organizations have a global payroll process owner with accountability for the payroll process across the enterprise. Skills and talent for this role center around business acumen and strategy enablement Shared Services enables Performance Payroll is local even when it s global 57% More Top Performing payroll organizations process payroll in a shared services environment. Our data shows a trend toward multifunctional shared services organizations that allows them to focus on the entire hire-to-retire process 61% Global Standardization is challenging and is achievable when companies focus on glocalization. Standardization across business processes is easier to achieve than work rule standardization, which is why payroll is local even when it s globalized

5 There is a large local influence on payroll, as a result even when it's global, it's local and local complexities must be taken into consideration Consideration Americas EMEA Asia/Pacific Legislative Requirements High High Medium Languages Low High Medium Currencies (includes currency blocs) Medium High Medium Geopolitical Climate Low Medium Medium Payroll Processing Solution Options Medium High Low Talent Acquisition Medium High Low Work Council/Union Influence Low High Medium Data Privacy/Data Protection Low High Medium Primary Payment Cycle High Medium Medium Regional Complexity Medium High Medium We understand that all regions are not created equal and as such have different levels of complexity. As a result, in order to analyze the data in a manner that takes regional differences into consideration, we have assigned each region a complexity factor. The regional complexity factor takes into consideration country specific legislative requirements that impact a company s overall performance ability. Our process automatically normalizes the data so company's are not penalized based on their geographical footprint. The considerations listed above is intended to be a representation of considerations, it is not an all inclusive list.

6 Although challenging, effectiveness will be faster to achieve than efficiency when globalizing the payroll process Total Process Cost Global Expansion Country-Based Optimization Global Optimization Domestic Excellence Time

7 Global Payroll Organizations Must Manage Around 5 Characteristics of Top Performing Payroll Organizations Alignment Process Ownership Service Delivery Technology Oversight

8 Five Characteristics of Top Performing Payroll Organizations Consistent Alignment 1 Enterprisewide Payroll Process Owner 2 Service Delivery 3 Technology Optimization 4 5 Global Oversight

9 In order to be effective, payroll must have consistent alignment across the enterprise and a global payroll process owner Consistent Alignment Enterprisewide Payroll Process Owner 1 2 It doesn t matter where payroll is aligned; however it is important that it is consistently aligned under the same function across the enterprise Once the payroll process is consistently aligned across the enterprise, an enterprise-wide payroll process owner can be selected Less than 50% of companies have an enterprisewide payroll process owner

10 Best Practice: Global payroll should have consistent alignment across the enterprise 1 alignment It is challenging to achieve top performance in payroll with inconsistent functional alignment across the enterprise There has been an increase in the management of the payroll process in a multi-functional shared services organization, which is usually aligned under the CFO Payroll alignment is less about the payroll process and more about the goals and objectives of the company Top Performer Payroll Alignment HR Finance Shared Services

11 Best Practice: There is an enterprise-wide payroll process owner with global accountability 2 ownership < 1/2 of companies have an enterprise-wide payroll process owner, staffing for this position is also challenged when there is inconsistent payroll alignment across the enterprise! The EPO for payroll is a strategic person with business knowledge and excellent relationship management skills!

12 Global payroll organizations must decide how best to deliver services in a shared services environment Service Delivery 3 Payroll administration is always a good candidate for shared services because of the highly transactional nature >50% of payroll Top Performers operate in a shared environment (2012) >80% of payroll leaders in a shared services environment indicates it adds value to the payroll administration process

13 Best Practice: Payroll services should be delivered in a regional or global shared services environment 3 shared services Top Performers operate in either a shared services or corporate environment >50% of Top Performers operate in a shared services environment >80% of payroll leaders operating in a shared services environment indicate it adds value to the process Shared Services Structure Centralized Decentralized Shared Services

14 Global payroll organizations must optimize current technology capabilities Technology Optimization 4 25% of payroll organizations are highly satisfied with their technology Only 20% have processes that do not require manual intervention 60% are looking to enhance their current technology solution

15 Best Practice: Payroll technology should provide comprehensive global insight, integration and automation throughout the process 4 optimization Priority Ranking of Changes Rank-Order Score (1 = Most Important, 5 = Least Important) Important Easier integration with other key solutions More self-service capability Better analytics of enterprise data Any-time, any-where access to data Increased enterprise-wide language and currency support

16 Global payroll organizations need a strong governance in place to execute the payroll vision and strategy as well as ensure proper controls are in place Global Oversight 5 Almost 80% of Top Performers have a formal governance model in place to prioritize initiatives, align payroll goals and objectives with the broader organization; set enterprise-wide standards and maintain compliance <1/2 have processes that do not require manual intervention Most are looking to enhance their current technology solution

17 Best Practice: In order to be effective the governance model needs to be well defined with clear roles & responsibilities 5 global oversight Focus Governance Structure Governance Board Operational Strategic Operational Strategic A Typical Governance Model Customer Council Process Client Council SSC Strategic Leadership Process Client Council Payroll HR Payrol l Team HR Team Process Owners 1 Customer Service Other Teams T&A WFM 1 May be members of SSC Strategic Leadership group

18 Questions/Comments/Concerns

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