4 Ways of bridging multi-country payroll gaps

Managing the long tail: perspectives on handling multi-country payroll operations & globalization.Cay Gliebe, NorthgateArinso

Webster Buchanan’s Multi-country Payroll Summit 2010© Webster Buchanan Research 2010 and NorthgateArinso

The Long Tail

4 MCP scenarios

River tree

• “Accidental” solution – typically Excel• Unstable, but good enough for now• Not fit for large volumes or extensive

auditing• Questionable compliance • Unfit for complicated payroll

regulations• Data manually entered and maintained• Not integrated with other systems• Easy to adapt and replicate in other

locations/geographies• No expert knowledge required

Bamboo jetties

• Built-for-purpose maze of non-connected local solutions

• Workable solution, yet unreliable• Difficult to maintain• Fit for low to medium payroll

complexity• Difficult to audit due to non-aligned

processes• Data manually maintained• No internal integration, limited external

integration• Easy to adapt and replicate• Limited expert knowledge required to

maintain – what about monsoon changes?

Railway bridge

• Large, single-country solution• Reliable and fit for high volume traffic• Capable of complicated payroll

regulations• Robust and ready for extensive

auditing• Labor intensive: data manually

maintained, duplicated between multiple systems

• Scope typically more than payroll• Limited or non-existent integration to

other systems• Difficult to rebuild or replicate in other

geographies

Spaghetti junction

• Global HRIS or payroll solution, typically ERP-based

• Capable of any degree of complexity in payroll regulations in many countries

• Extensive auditing by external regulators

• High degree of automation• Wide range of internal and external

integration options• Costly to implement and maintain• Expert knowledge required

The challenge: bridge the gapbetween reliability and flexibility

HR leaders’ challenges

Drive down cost

Improve delivery quality

Create a more agile organization

• Process standardization

• Transactional efficiency

• Self Service adoption

• Strategic outsourcing

• Fast ROI

• Global HR service delivery model

• Deep HR process expertise

• SLAs & reporting

• Preconfiguration

• Proven & integrated technology

• Single global HRIS

• Uniform technology landscape

• Hybrid deployment options

• Multi-device access

Options & complexity

Hosting

IT resources

Geographical growth

HR service center

Investment

HR processesCustomization Standardization

Upfront Recurring

In-house Shared Service Center

Limited Easy expansion

In-house Outsourced

Local Global

ESS/MSS Contact ManagementDocument ManagementKnowledge Management

Compensation & RewardPerformance ManagementTraining & DevelopmentRecruitmentSuccession Planning

PayrollTime managementOrganisational ManagementPersonnel Administration

A unique platform for standardizationTypical HR/IT landscapeTypical HR/IT landscapeUnified HR systems landscapeUnified HR systems landscape

Self-ServiceSelf-Service

HR Document & Knowledge managementHR Document & Knowledge management

Talent Management processesTalent Management processes

Enabling processesEnabling processes

Functional blocksFunctional blocks

America’sAmerica’s EMEAEMEA APACAPAC

Country 1Country 1 Country 2Country 2 Country 3Country 3 Country 4Country 4 Country 5Country 5 Country XCountry X

Aggregator model

Standardization: do you have your ducks in a row?

‘What if’ scenarios

River tree

• What if you need to replicate this times 20?

• What if your excel file gets lost?• What if your system crashes?• What if your resource quits?• What if you get a lot of volume

(M&A)?• What if you fail compliance?

Bamboo jetties

• What if you get massive legislative changes?

• How do you create visibility on the data and uniform reporting?

• What if you need integration to other systems?

• What if you have to scale up rapidly?

Railway bridge

• What if you need to replicate under different circumstances?

• What if your long-term experts leave?• What if your local solution is no longer

supported?• How do you ensure visibility across

your entire employee population?• How do you ensure accuracy of both

HR and payroll data?

Spaghetti junction

So how can this possibly be cheaper, bring more consistent quality, and be more flexible?

Only with a long term perspective

•Predictability around TCO•Viability and longevity•Uniformity and repeatability in new markets/situations•Scale if you grow and contract•No need to rebuild•Consistent quality around the world

10 Critical Success Factors

1. Culture & values

2. Management information

3. Identify key staff

4. Project induction

5. Financial control

10 Critical Success Factors

6. Ownership at exec level

7. Clear functional vision

8. Country level support

9. Project governance

10.Living communication plan

Questions

cay.gliebe@northgatearinso.com www.northgatearinso.com/payroll

4 Ways of bridging multi-country payroll gaps

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