Top Three Payroll Practices for Multinational Organizations
Having timely and accurate payroll services in accordance with the law is critical for any company, but for international organizations, accomplishing this is even more complex. Since 2006, business consulting company The Hackett Group has worked with the American Payroll Association to conduct yearly global payroll performance studies. Based on their observations, the most successful global companies utilize the following best practices when it comes to their payroll.
1) Adopt a service delivery model that is globally managed. A successful global company should be innovative. It is highly recommended to adopt a payroll system that is globally uniform, and that new models be investigated every few years to insure you are using the best one for your company’s needs.
2) Establish lines of payroll authority globally. This includes not only using the same or similar payroll providers across the board, but establishing governance for company-wide data standards and vendor oversight which can be tied to your company’s goals and objectives.
3) Use advanced metrics to make informed decisions about payroll operations internationally. It is important that your company stay in the forefront of technology and change, so you should be constantly reviewing your global payroll operations.
In summary, heads of successful organizations will insert themselves into the inner workings of their international payroll processes to maximize their effectiveness and efficiency.