Results Overview from Deloitte Payroll Operations Survey
Professionals directly involved with payroll functions from 58 companies in several industries participated in a payroll operations survey. The companies represented were global and domestic, ranging in size from under 200 to over 300,000 active employees.
The survey’s goal was to gain insight into the payroll systems and service delivery models around the world. One of the many observations was that some global companies lack full transparency in their global payroll operations. This muddied view is why payroll outsourcing remains a thorn in many organizations’ sides.
Whereas outsourcing once appealed mainly to companies with 20,000 or fewer employees, today, larger organizations are apt to outsource all or a portion of payroll operations.
Why the change?
Global payroll is complex. It’s difficult to find a global payroll service, like GS3. After all, many U.S.-based providers handle domestic functions, but even they outsource the global components, which can create logistical messes for customers. Year-end processing, defining withholding responsibilities, and reporting income locally were big challenges for organizations with a mobile global workforce.
Those satisfied with their current payroll vendor still seek ways to improve services received. No wonder since a vendors’ compliance with processes and regulations and better integration in established internal systems is so critical.
What else matters to respondents?
Time and attendance systems.GS3 includes an integrated time and attendance tool or allows for complete integration of your system.
Fully documented pay policies. GS3’s transition planning system completely documents processes in every countries in which you operate to ensure compliance. GS3 has complete global workforce management tools, including an ROI tool for expatriate management assignments.
Track and manage mobility for U.S. state and global taxation reporting. GS3 integrates with any system, so it’s easy to capture relevant business travel requirements.
Tools and techniques to monitor internal and outsource vendor service quality. GS3 is customizable to match the way you do business, rather than adjusting your global processes to fit the solution.
Twenty percent of respondents report no plans to develop a global payroll strategy, but they have payroll operations in more than one global region. While payroll ranks as one of the top SaaS modules respondents are considering, global functionality is a very limited offering from most vendors. To more efficiently and compliantly manage global payroll, respondents indicate they need a completely integrated global payroll service like GS3.