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3 challenges experienced by multi country payroll teams | Ascender

3 challenges experienced by multi country payroll teams

Multi Country Payroll can be a challenge

In-house payroll teams looking after multi country payroll have to deal with numerous contracts, currencies, customs, legislation and time zones. All of these factors make this process a tough task to tackle. The Global Payroll Management Institute released a video with a short explainer of what the three biggest challenges for global payroll teams are. In this blog we’ll learn about these challenges as well as what HR leadership can do to combat them.

Here is a partial transcript of the video: "The first one is inefficiency, second one is transparency and the third one is cost. The first one, inefficiency, they typically have a lot of disparate solutions….Sometimes there is no automation and this creates a lot of manual error and creates a lot of risks of compliance…."

Watch the video to hear more about the first challenge.

The second issue is transparency. Because of these disparate systems they have no visibility in their local workforce and the cost of their local workforce.

They know they have employees from China, Singapore…but they don’t know how much they pay them. Eventually they’ll get that (information) from financial but they don’t know who gets what and this creates a lot of issues.

The third one is cost, because of all these systems there are a lot of different contracts so…they have to pay and follow, they don’t control the cost of that global payroll solution.”

To watch the full video click here.

The Global Payroll Management Institute makes some good points. Inefficiency is a massive resource drain. Time is money, especially when dealing with multiple systems that aren’t connected. In order to maintain transparency, you would need to have these separate systems connected so you could access one version of truth instead of flipping back and forth to make sense of the current payroll situation.

Another big challenge that the video didn’t cover, but one we think is worth mentioning, is compliance. Trying to keep on top of compliance when managing multi country payroll (let alone just one country) is a difficult task for any payroll team. We’ve found that, often businesses won’t realise they are non-compliant until an employee brings it to their attention with a complaint. By that point an investigation could expose a potential multitude of errors occurring in the payroll process – some of which could lead to infringements and other problems. Of course, this is something any business should avoid. Staying compliant means knowing your payroll processes are correct all of the time.

Payroll is the quiet but crucial business contributor that is paid little attention by other business units – until something goes wrong. With the expectation being that all payroll processing is accurate, compliant and consistent, it’s essential that HR Directors are leveraging industry experts to overcome these challenges for their global teams. As long as efficiency, transparency, cost and compliance are top of mind for all global payroll units, HR Leaders can drive the way towards a seamless payroll experience.

Are you in a MNC located within the Asia Pacific region and experiencing the same challenges as mentioned above? Would you like to learn more about MCPO? You can download a free copy of the comprehensive white paper ‘Multi-Country Payroll Outsourcing (MCPO): A Must-check Buffet for MNCs in Asia Pacific’ by clicking on the button below. It will provide valuable insight into:

  • Why MCPO is at a tipping point in Asia Pacific and what it means for enterprises there
  • The differences between single and multi-country payroll strategy
  • Challenges enterprises in Asia Pacific face in implementing MCPO and;
  • Specific and detailed steps organisations in Asia Pacific can take to create successful MCPO outcomes

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