Building a Strategic Global Payroll Function for Greater Efficiency and Innovation

Transcription

1 Opening Doors Around the World Building a Strategic Global Payroll Function for Greater Efficiency and Innovation Page 1 CloudPay Webinar July 16, 2014 Solutions for Global and Local Success!

2 Jeitosa Global Strategic Advisor Founder and CEO of Jeitosa, a global HR business and systems consultancy. Led the team that built the global strategy for Workday s new Human Capital Management offering. Previously responsible for ADP s professional services across the Americas, Europe, and Asia/Pacific. Co-founder and Editor-in-Chief of the IHRIM Journal and Program Chair for IHRIM s Global Technology Forum. Published extensively in fields of Linguistics, Humanities, Human Resources, and Information Technology Karen Beaman Jeitosa Group International Strategic Global Advisor Home Base: San Francisco [email protected] (global cell) Recipient of IHRIM's Summit Award in 2002, honoring her lifetime achievements in the field of HR and HRIT. B.A. from Old Dominion and an M.S. from Georgetown University; Ph.D. candidate in Sociolinguistics. Fluent in English, German, and French; conversational Spanish and Portuguese. Page 2

3 Jeitosa s Name and Values Our Name jeitosa [zhay-taw-za] (Brazilian Portuguese) adj. 1. agile, skillful, adroit; 2.innovative, creative, solution-oriented. Our Values Integrity fostering openness and fairness in all our business relationships. Motivation going the extra mile to ensure our clients and partners success. Partnership engaging with all our associates for long-term relationships. Knowledge sharing best-in-class global business and technology solutions. Excellence delivering superior value to our clients, partners, and shareholders. Balance building symbiosis among work, life, diversity, profitability, and fun. Page 3

4 Jeitosa s Vision and Mission Our Vision To provide world-class, global human resources consulting services, with a focus on strategy, research and systems deployment, serving as a vital business partner to clients. Our Mission To bridge people, process, and technology through agile, modern solutions for global and local success. Page 4

5 Jeitosa s Global Business Domains Strategy Strategic Planning Readiness Assessment Business Case IT Roadmap Process Optimization Strategic Talent Global Payroll International Compliance HR Transformation Change Management Shared Services Data Privacy Vendor Evaluation Communities Research Groups Training Programs Custom Workshops Best Practice Sharing Knowledge Transfer Seminars/Conferences Surveys/Trend Analyses Discussion Groups Professional Networking Webinars Publications: Books, White Papers, Newsletters, etc. Deployment Program Management Project Management Rapid Deployment Best Practice Design System Configuration Data Conversion System Integration Testing Strategies Workforce Planning Metrics/Analytics Reporting/Warehousing Post-Production Support System Enhancements Page 5

6 About Sheri Sullivan Joined CloudPay in 2011 Global payroll industry leader for the past 14 years travelled to over 42 countries! A graduate of State University of New York at Buffalo University of Illinois at Urbana- Champaign Previous experience: CEO of Intercomp Global Services Director at Paychex Sheri Sullivan VP Business Development CloudPay [email protected] Page 6

7 About CloudPay - Who We Are Payroll management for multinationals Our vision Our mission We are the only SaaS based multinational payroll provider in the $20B global payroll market - and we set the standard for multinational payroll management. We are the pioneer and foremost provider of multi-national payroll technologies and services. Our approach We use our world leading SaaS technology and our global expertise to provide multi-national payroll coordination, processing and analysis Page 7

8 CloudPay Differences Global analytics, dashboarding and adhoc reporting One proprietary global payroll platform delivered on a SaaS technology Global consolidated reporting offering over 125 standard reports Consistent processes one global vendor, consistent user experience One user experience globally CloudPay system, ESS and MSS Proven payroll compliance and delivery in over 110 countries Workday Certified Partner Certified integrations Supporting clients in over 26 languages and in over 30 currencies CloudPay CONFIDENTIAL Page 8

9 Topics for Today s Session Today s Business Drivers Global Payroll Landscape Efficiency-Innovation Model Nine Practices of Top-Performers Page 9

10 Today s Business Drivers Age-old paradox: how to do more with less Organizations are simultaneously trying to: Seek efficiencies through lower costs and increased productivity Pursue innovations and opportunities that promise better ways to get work done Any intelligent fool can make things bigger, more complex. It takes a touch of genius and a lot of courage to move in the opposite direction. Albert Einstein Page 10

11 Balance Efficiency to Drive Greater Innovation Drive for Efficiency Pursuit of Innovation Page 11

12 Balance, not Compromise Page 12

13 Global Payroll Vendor Models Typology BPO Provider Outsourcer Aggregator Adapter Accountancy Provide full outsourced services using clientowned/ licensed software Providefull outsourced services using vendorowned proprietary software Provide full outsourced services with one database to aggregate data across providers Provide a single payroll software application adapted for various countries Provide full outsourced services using some variation of proprietary software Broad footprint Single service Strategic focus Strict standards Loss of control Service options Common software Processing focus Strict standards Limited footprint Broad footprint Flexible standards Reporting focus Varying software Multiple vendors Common software High level of control Software focus No service Limited footprint Broad footprint Flexible service Tactical focus No consolidation No software Page 13

14 Global Payroll Vendor Landscape BPO Provider Outsourcer Aggregator Adapter Accountancy Client-Licensed Software with Service Proprietary Software with Service Proprietary Software & Consolidation with Service Proprietary Software only with no Service No Payroll Software Service only Page 14

15 Global Payroll Research Background Page 15 Initiated 18 months ago with the goal to be the premier global payroll benchmarking database in the industry. Currently 80 Fortune 1000 global organizations participating with sizes ranging from 5,000 to over 200,000 employees. Benchmarks for both strategic issues, such as global organizational design and service delivery models, as well as detailed operational statistics, country-by-country, such as cost of staff and services, as well as specific operational metrics relating to quality and efficiency. Deliverables include a customized global report and detailed country payroll report for each participating country The fundamental principle is: payroll costs are only understandable within a given organizational context.

16 Research Study Demographics (1 of 2) Employee Population Size Headquarters Country Location Industry Sectors Represented n = 75 Page 16

17 Research Study Demographics (2 of 2) Primary Global HR Vendor Primary Global Payroll Vendor Number of Countries Global Organizational Model n = 75 Page 17

18 Types of Global Organizational Models Four models are typical among global companies, each with different strengths and weaknesses. Page 18 ; adapted from Bartlett & Ghoshal, 1998

19 Key Characteristics of Global Models Internationals Strategy: Learning and sharing Organization: Decentralized and sharing People: Geocentric Mindset Processes: Hybrid localized and standardized Technology: Multi-local, optimized solutions Multinationals Strategy: Localization and adaptation Organization: Decentralized and independent People: Polycentric Mindset Processes: Highly localized Technology: Multi-local solutions Transnationals Strategy: Networked and innovative Organization: Centralized and leveraged People: Global Mindset Processes: Hybrid standardized and localized Technology: Uniform and optimized solutions Globals Strategy: Efficiency and standardization Organization: Centralized and standardized People: Ethnocentric Mindset Processes: Highly standardized Technology: Uniform solutions Page 19

20 Efficiency and Innovation Measures Efficiency Measures Centralization/Decentralization Factors 1. Delivery Model (from local to regional to global) 2. Governance Model (from local to regional to HR to Finance) 3. Global Vendors (from multiple to several to clusters to one) 4. Standardization (from minimal to regional to emerging to full) 5. Integration (from manual to FTPs to hybrid to single system) Innovation Measures Leading Practice Adoption Factors 1. Key Accountabilities (from country to regional to global to process) 2. Metrics (from none to lagging to root cause to leading/predictive) 3. Tools and Methods (from none to control to process to external) 4. Automation (from manual to basic to workflow-enabled to portal access) 5. Mindset (from clerical to country to regional to process to strategic) Page 20

21 Efficiency-Innovation Model n = 75 Page 21

22 Efficiency-Innovation Model n = 75 Page 22

23 Efficiency-Innovation Model n = 75 Page 23

24 Efficiency-Innovation Model Performance n = 75 Page 24

25 Efficiency-Innovation Model Industry n = 75 Page 25

26 Summary of Major Research Findings Page 26

27 Nine Practices of Top Performers EFFICIENCY EFFECTIVENESS 1. Global Service Delivery Model 4. Consolidated Global Systems 2. Recent Transformation 3. Global Lines of Authority #1 #2 5. Hybrid Sourcing Strategy 6. Payroll Self-Service thru HCM Global Service Delivery Systems Rationalization #3 Global Strategic Mindset Page Minor Staff Realignment 8. Advanced Metrics 9. Strategic Global Mindset INNOVATION

28 Nine Practices of Top Performers EFFICIENCY 1. Global Service Delivery Model 2. Recent Transformation 3. Global Lines of Authority #1 Global Service Delivery #2 Systems Rationalization #3 Global Strategic Mindset Page 28

29 Top Performing Organizations. #1 21% more likely to utilize a global service delivery model for global payroll 29% Low-Performing Organizations High-Performing Organizations Page 29

30 Global Service Delivery Model Answers the who, what, when, where, how, and so what Global Service Delivery Model (GSDM) Function Model WHAT HR Operations Benefits Payroll Time & Attendance Mobility Impact Model SO WHAT Compliance Mission-Critical Important Table Stakes Neutral Global Model WHERE Local Site Provincial National Regional Global Organization Model HOW Self-Service Business Group Service Center Center of Expertise Outsourcer Service Model WHEN T0-Self-Service T1-Call Center T2-Case Mgmt T3-Expert Support T4-Consulting Role Model WHO Call Center Rep HR Generalist Analyst Manager Director Page 30

31 Global Compliance Model Goal: 90% global Talent, Position and Headcount Management, Workforce Planning Compliance Impact Goal: 75% global Staffing Transactions, Absence Management, Compensation Goal: 60% global Payroll, Time and Attendance, Health and Safety, and Benefits Page 31

32 Top Performing Organizations. #2 46% more likely to be transforming their global payroll service delivery model 38% Low-Performing Organizations High-Performing Organizations Page 32

33 Top Performing Organizations. #3 12% more likely to have payroll leaders with global accountability 65% Low-Performing Organizations High-Performing Organizations Page 33

34 Global Governance Model Page 34

35 Nine Practices of Top Performers EFFECTIVENESS #1 Global Service Delivery #2 Systems Rationalization 4. Consolidated Global Systems 5. Hybrid Sourcing Strategy 6. Payroll Self-Service thru HCM #3 Global Strategic Mindset Page 35

36 Top Performing Organizations. #4 32% more likely to be consolidating their payroll vendors globally 59% Low-Performing Organizations High-Performing Organizations Page 36

37 Top Performing Organizations. #5 13% more likely to adopt a hybrid sourcing strategy for global payroll 28% Low-Performing Organizations High-Performing Organizations Page 37

38 Top Performing Organizations. #6 8% less likely to provide self-service through their payroll system 33% Low-Performing Organizations High-Performing Organizations Page 38

39 Nine Practices of Top Performers #1 Global Service Delivery #2 Systems Rationalization #3 Global Strategic Mindset Page Minor Staff Realignment 8. Advanced Metrics 9. Strategic Global Mindset INNOVATION

40 Top Performing Organizations. #7 48% more likely to experience minimal payroll staff realignment when outsourcing 44% Low-Performing Organizations High-Performing Organizations Page 40

41 Top Performing Organizations. #8 20% more likely to use advanced metrics to manage quality and make decisions 59% Low-Performing Organizations High-Performing Organizations Page 41

42 Top Performing Organizations. #9 27% more likely to foster a global, strategic mindset across their payroll staff 39% Low-Performing Organizations High-Performing Organizations Page 42

43 Top Performing Organizations are defying the global strategic payroll paradox and pursing BOTH efficiency and innovation Efficiency Global Service Delivery (#1) and Accountability (#3) Recent Service Delivery Transformation (#2) Consolidated Global Systems (#4) Hybrid Sourcing Strategy (#5) Innovation Payroll Self-Service Driven by HCM (#6) Minor Staff Realignment (#7) Advanced Metrics Framework (#8) Strategic Global Mindset (#9) Page 43

44 Building a Global Strategic Roadmap Business Impact SaaS/Hosted Platform Global Service Delivery Model Horizon 4 Global Effectiveness Advanced Metrics Framework Global Service Centers Horizon 3 Global Innovation Formal Quality Methods Global Reporting Structure Cultural Intelligence Global Mindset Global Governance Model Global Strategic Plan Horizon 2 Global Efficiency Global Process Standardization Vendor Consolidation Horizon 1 Global Foundation Single Global System of Record Global Process Accountability Global Teams Global Assignments Legend: Technology Process People Organization Strategy Time Page 44

45 Payroll Services Country-by-Country Page 45 Denotes levels below 20% adoption.

46 Payroll Costs Country-by-Country Page 46

47 Next Steps for Global Benchmarking Study Page 47 Continued emphasis on both: strategic context for Global Payroll tactical execution of payroll at the country level Increased focus on operational metrics, including: detailed operational, performance/quality, and compliance metrics software, services, and labor costs Expanded number of countries, covering: Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Netherlands, Poland, Russia, Saudi Arabia, Singapore, Spain, United Kingdom, and United States Deliverables provided to each participant: Global Benchmark Report, Individual Country Benchmark Reports, Personalized Debrief and Discussion Session Please contact Jeitosa if you re interested in participating in this landmark study:

48 Thank You! gracias, merci, efcharisto, hvala, kiitos, durdaladawhy, asante sana, bedankt, danke, rekhmet, go raibh maith agat, salamot, doh je, spasibo, Ευχαριστω, arigato, tack, shukriya, tesekkür ederim, bayarlalaa, terimah, mahalo, takk, kasih, mamnoon, dhannvaad, ध यव द, dziêkujê, tapadh leat, grazie, dakujem, khawp khun, ngiyabonga 谢 谢 Page 48

49 Questions and Answers & Page 49

50 Thank You Page 50