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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Why is payroll so vital during
international growth?

XX Month 2024 0 Comments

As companies plan for overseas expansion there are a number of approaches they can take which will impact their payroll strategy. Whether the approach is through mergers and acquisitions, establishing regional or in-country offices or employing temporary staff in overseas markets, payroll needs a strategy that is built to scale and delivers a standarised and streamlined service across all geographies.

The C-suite expects the payroll function to be ready to support business growth. ADP, The Potential and Payroll in 2024: Global payroll survey shows that 24 per cent of businesses say international expansion is a key driver to transforming their payroll operations over the next 2-3 years.

Key strategic components will need to be assessed. The technology requirements, peoples' roles and responsibilities, payroll governance and standardisation will all need careful consideration to address the needs of the business:

  • Optimisation of processes
  • Accessibility of data
  • Flexibility to adapt quickly
  • Local compliance
  • Employee experience

Expectations of payroll are considerable, especially when moving into new markets, yet payroll is often not consulted in the expansion decision.

Employee Expectations

When it comes to what employees expect from payroll, being paid accurately and on time should be a given. Yet according to ADP Research Institute's most recent People at Work global research, 22 per cent of employees report always or often being underpaid and 16 per cent always or often incorrectly paid.

There are so many competing attractions and compelling options tempting workers away from traditional roles that you can't afford payroll errors or inconveniencies. The Potential Of Payroll study shows many companies are focusing on improving employee experiences, by way of increasing accuracy rates as well as introducing different pay methods and frequencies. When expanding into new geographies it's vital that an employer brand is steadfast, and payroll plays a critical role in building and maintaining their employer reputation.

HR/payroll team expectations

HR, finance and payroll leaders have a clear view of the benefits that any payroll transformation could help them deliver, such as:

  • Access to greater reporting and analytics capabilities
  • Integrations of payroll data with HR systems
  • Simplified data collection methods
  • Streamlined payroll processes
  • Tighter data security protocols

Payroll staff also want to relieve themselves of the manual burden and inefficient ways of working, so developing a suitable payroll strategy which will meet all expectations is crucial. Where do you start?
Download ADP's vital role of payroll guide to learn about the most common expansion approaches and the different payroll strategies, as well as the risks and best practices associated with each.

Download ADP's Guide to the vital role of payroll in international business expansion

Sources: ADP

  1. Grand View Research. Business Process Outsourcing Market Size, Share & Trends Analysis Report by Service Type (Customer Services, Finances & Accounting), by End-Use (IT & Telecommunication, BFSI), by Region, And Segment Forecasts, 2022 - 2030