Challenges of running multiple payrolls

Payroll by its very nature is not the job that gets much appreciation. People remember the payroll executive only when they don’t get their salary or their gratuity is overdue. However, payroll executives across the world perform incredibly challenging jobs. If an organization has its roots in New Delhi but has its branches in Tokyo, Beijing, and Colombo, then payroll department has to jump many hurdles befor a solid pay policy can be made.

In this blog, we list out the key challenges that payroll departments face across the globe.

Multi country systems: It is possible that the payroll systems at head office have the latest automated systems however the regional offices could be working with an outdated excel software. If the software products are not upgraded, then it is possible for companies to lose track of how much they are spending on their work force. Hence, it is important for companies to upgrade their systems at the local levels as much as the head office.

Too much oversight: While it is entirely possible for a local office to use excel while the head office uses the most sophisticated automatic system, turning it around completely can also be a problem. Head office might want to take full control so that they can have access to all the information from their offices across the globe. However, they can be indifferent or unaware of local cultures. This can also lead to large scale attrition.

Different compliance laws: Compliance, insurance, taxation laws differ in every country sometimes across states. Add to it, these laws keep changing time and again to suit company needs. Many a times the payroll department is not update with the compliance processes in a different region. Add to it these rules keep changing all the time depending on the needs of the government and their approach to labour laws and businesses. Hence, a payroll department must be constantly vigilant on changing processes across the globe. This is a huge challenge because of the constantly evolving laws around business and labour.

Manual processing: One of the biggest problems in the world when it comes to multiple payrolls is that many of them are processed manually. This leads to many errors. Many companies land up spending huge amount of money simply because the calculations were wrong. An automated payroll system can help companies in immense ways. It can reduce time, errors, and company resources. IT can also be a great way to get reports at the click of a button. Do you want a report on all employee costs in Tokyo? You can get it at the click of a button. Do you want to know how much taxes you pay in Sri lanka? You can get it at the click of a button. How do you plan on introducing a bonus in Cambodia? Well, get the report at the click of a button.

Hence, in conclusion, it is important for companies to take care of several aspects when it comes to payroll processing across geographies. Investing in some solid processes can help the company reduce attrition, improve employer branding, and develop strategies for long term hiring.

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