{"id":3065,"date":"2017-07-13T21:28:53","date_gmt":"2017-07-13T21:28:53","guid":{"rendered":"https:\/\/www.peeriosity.com\/shared-services\/articles\/?p=3065"},"modified":"2022-09-06T22:01:27","modified_gmt":"2022-09-06T22:01:27","slug":"making-the-transition-to-a-global-payroll-operation","status":"publish","type":"post","link":"https:\/\/www.peeriosity.com\/shared-services\/articles\/2017\/07\/making-the-transition-to-a-global-payroll-operation\/","title":{"rendered":"Making the Transition to a Global Payroll Operation"},"content":{"rendered":"

Introduction<\/strong><\/span><\/p>\n

Globalization<\/a> of the Payroll function<\/a> is a high priority for approximately 40% of the companies with global operations that participated in recent Peeriosity research on this topic.\u00a0 While the benefits of a global design can be significant, being able to overcome the obstacles to transitioning to this type of structure can be very challenging, especially in a number of countries in Europe and Asia with complex regulatory environments and limited technology alternatives.<\/span><\/p>\n

Company Experience<\/strong><\/span><\/p>\n

A recent Peeriosity PeercastTM<\/sup> featured a large global company, with over 100,000 employees and operations in more than 50 countries across the globe, and they shared their experience in making the transition to a global payroll operation.\u00a0 Prior to its global transition, it had 14 independent payroll teams and over 30 suppliers of payroll services.\u00a0 Some issues they faced included a lack of standards and best practices, limited scalability, a higher cost of ownership, and slower decision-making for global initiatives.<\/span><\/p>\n

Utilizing an independent transfer team and a predefined project methodology, the effort began with the overall business drivers of cost and user experience being of the highest importance.\u00a0 Their strategy included having zero-to-gross offshored and gross-to-net being performed in a global end-to-end center of excellence that is outsourced, while US Payroll remained in-house.\u00a0 Utilizing two strategic vendors, the \u201clift and shift\u201d implementation approach was used and the operational foundation was based on Business Process Management (BPM) principles.<\/span><\/p>\n

There were numerous challenges faced during this global transition, including users and stakeholders adjusting to remote versus onsite payroll support (local language and face-to-face interaction), retaining and developing talent, maintaining an engaged and committed workforce, retaining tribal knowledge, performing remote reporting, and building the right culture and leadership in the receiving location.\u00a0 As always seems to be the case, the silo versus global mentality was difficult to overcome, as well as the almost universal challenge with a project like this of systems integration.<\/span><\/p>\n

The following are some of the results of the global payroll transition:<\/span><\/p>\n