The Great
Transformation Guide
ADP has authored a series of thought-provoking articles exploring the relationship between organisations and
payroll. From the HR and payroll challenges of global expansion to the rich resources of payroll data; from
the payroll skills shortage to the true cost of inefficient processes; this series helps to identify and solve
obstacles and appreciate and embrace the ever-greater asset payroll can become to companies navigating a
treacherous business landscape.
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The benefits of data-driven payroll for company growth
For organisations to survive the contemporary economic and political climate, they must make smart choices. The insights that payroll data offers can speed up entry into new markets and help companies expand while avoiding poor decisions.
To expand into a new country, ADP says companies must know:
- The costs of staff recruitment in the country you will be setting up operations (compensation benchmarking)
- Payroll staff salaries, overheads and overtime
- Comparable existing locations in your organisation
Once a business is established in a new geography ADP advises that productivity, wage costs, legislative changes, pay equity, investor requirements and currency fluctuations must be monitored. Benchmarking these against similar sites company-wide will contribute to a positive outcome.
Payroll data is the most accurate because it is checked every time there’s a pay run. Yet collecting this valuable data can be time-consuming if it is not efficiently organised. Many HR and payroll teams still waste hours trying to consolidate information from different systems in multiple geographies.
Referencing their latest payroll research, ADP revealed that 45 per cent of global payroll teams spend 21 or more hours reconciling data between HR and payroll systems every week; more than half of the typical person’s working hours.1 It is unsurprising then that in the same research, 73 per cent of payroll leaders in multinational organisations said they didn’t have the payroll data to inform the strategic direction of their company during the pandemic.
In their guide ‘The payroll data points essential for international business expansion’, ADP explains that payroll data can give you a significant advantage in setting up your new workforce abroad and can shift the perception of payroll from a back-office function to a driver of strategic value.
“We are in an ever more data-driven world where we see data analytics fast becoming a must-have dedicated resource in payroll,” Jeff Phipps - SVP GlobalView, ADP - said. “There is enough information in your payroll data to help you determine headcount requirements and model compensation packages, for example, you just need to make it easy to collect the data you need.”
Payroll data has the potential to provide information that’s crucial to an organisation’s decision-making. If you connect pay and HR data, you’ll have a great deal of workforce information that will help you succeed in new markets.
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The payroll data points essential for international business expansion