Global payroll implementation requires careful consideration, research and completion of a multitude of tasks before setting a viable go-live date, and a major piece of this pre-planning phase is defining your global vision. This vision needs to encompass the types of relationships you wish to create with your partners overseas, the cross-culture employee experience, the types of reporting your team requires access to, secure banking transactions and so much more.

Are you struggling to define your global vision? Below, we offer tips to consider before beginning your global payroll implementation journey.

Assess Payroll Needs and Scope

As your organization begins a global payroll implementation project with organizations overseas, it is essential for you to answer this question: can you leverage a single human capital management (HCM) solution globally, or will you need a hybrid solution? You could begin by identifying the answers to these questions:

• Does your selected HCM solution include payroll capability to cover all countries where employees will need to be paid? 
  • This might mean that the solution has gross-to-net payroll engines or relationships with in-country partners who can complete gross-to-net calculations to cover all countries within the scope of your project.
• If your selected HCM solution does not cover any of the countries, will you need to seek in-country partners?
• Does your selected HCM solution include payroll capability to cover some countries where employees will need to be paid, and you will need to find in-country partners to cover the other countries?
• This would be a hybrid situation where your HCM solution has you covered with payroll engines or existing in-country partners for some countries in scope. For those not covered, you will need to identify in-country partners.
  

Understanding these factors is critical to achieving the configuration to maintain human resources (HR) global demographic data, payroll processing data transactions, integrations and currency conversion capability to populate reports in the way you need them. Get clear on the capabilities your HCM solution or in-country partner can provide.

Consider Business Culture and the Employee Experience

Remember that the American vision for our employee experience as members of a U.S. company may not translate on a global scale. Business cultures differ significantly from country to country, so creating like experiences for all your employees is a goal that will require educating yourself about these differences. 

While it isn’t always possible to guarantee a company culture that ensures 100% of your employees have a similar experience, 80% is a solid and achievable goal to strive for. 

When embarking on a global payroll implementation project, be open to the cultural differences you will notice and experience as you work with your in-country partner(s). Be aware that in other countries, the services payroll encompasses may be defined differently. For example, some in-country partners are accustomed to completing corporate accounting filings on behalf of the company. Strive to gain clarity in advance to avoid responsibility assumptions that could cause tasks to fall through the cracks or be duplicated.

Define Your HCM Reporting Needs 

As HCM experts, you have reporting needs, and your partners have reporting needs. As you build your global HCM solution, it is crucial to carefully define what your cross-functional reporting needs are. During an implementation, you must build your data elements into your solution. One tip: explore your reporting requirements from day one so your cross-functional subject matter experts can set your HCM solution up for success.

Clearly understand how your overseas partners will deliver your data to you.  For example, a spreadsheet completed in Portuguese on a format your office software suite does not support could be an unwelcome surprise challenge.

Know your HCM Security Requirements

Understanding the limitations of specific security requirements is a crucial part of planning for global payroll implementation. When approaching this step of the planning process, you should consider these questions:

• What type of data do you want members of your team to have access to within your HCM system? 
• How do you want your team to access this data? 
• Is there data that you want some employees to view but not others?

The configuration of your HCM solution will be influenced by how you want your team to access data and the level of access you wish to grant.

For example, you may have a payroll administrator who should only have access to hourly employee information, not the salaried employee view. In this scenario, you would want to talk to your specific HCM vendor or in-country partner to consider the initial configuration more carefully.

Learn the Payroll Definitions of Each Country Involved in your Global Implementation

When working with in-country partners, it’s important you become familiar with their standard processes. The payroll processes you’re accustomed to overseeing in the United States may be vastly different from what professionals in other countries are doing. While their standard processes are important from a compliance or regulatory perspective in their country, elements may not align with the U.S.’s standard payroll processes. On the flip side, not all elements you deem necessary will match up with their typical processes. Being surprised by a major gap on either side during the go-live period is nothing short of a fire drill.

Become Informed About Global Security Rules and Regulations

Just as other countries might define payroll differently; separate countries and regions can have different regulations around data protection. For example, the General Data Protection Regulation (EU) 2016/679, or the GDPR, is a European Union regulation on data protection and privacy in the EU and the European Economic Area (EEA). It also addresses the transfer of personal data outside the EU and EEA areas. It is essential to know that your global HCM/payroll solution will comply with all relevant international rules and regulations. 

Build in Extra Time to Overcome Language Barriers 

When gathering with decision makers across an international implementation project, everyone involved in every stage of the process should understand what is happening, specifically in communication. Language barriers arise during these global-scale projects, so it is wise to build in more time than you think you need to accommodate potential language barriers. For important discussions to be effective, everyone has to understand what is communicated accurately.

Understand your Banking Relationships, Setup Requirements and Other Inter-Country Considerations

Banking Relationships

Make sure to leverage your in-country subject matter expert’s knowledge and regulatory expertise. 

This information includes:

• Business licenses
• Banking registration and setup
• Statutory benefit plans
• Tax registrations

While your in-country partner may be able to assist you in this process, they can’t offer you legal advice. You will want banking guidance from a reliable resource, which is why we recommend leaning on your in-country subject matter expert, who will guide you through the complex regulatory challenges to ensure success.

Transactions

Additionally, you will have to gain information on the specific types of transactions this new HCM system handles. These transactions can include the following:

• Transfers
• Expats
• InPats
• Cross-border supervisors

No matter the HCM solution, make sure to fully understand the configuration to ensure these transactions are successful, secure and compliant. Understanding the configuration is another area where seasoned expertise can be particularly valuable.

Local Language Software Capabilities

With any vendor, educate yourself on how the local language software capabilities work in their product. You’ll want to make sure that the software translation of the language path includes employee data, and if each language package is individually priced, you’ll want to make sure you’re getting a full quote.

Global Shared Company Programs

Understand your global shared company program options and how they can be configured to work within your system. For relocation and stock options, for example, you will want to determine early on if an integration can be built for the third-party vendor administrator.

Define Your Global Vision with Wise Consulting by RSM

Understanding these initial considerations before launch is imperative to ensure a successful implementation and long-term relationship between your team and the in-country partners you’re working with on an international scale. 

If you are struggling to define your global vision, get the information you need, or your team is short-handed, our experienced global payroll consultants are here to help. Our results-driven payroll professionals have years of experience working to ensure project success for international clients across industries. To discuss your unique global payroll implementation project with a member of our team, call our office at +1 800 654 4550 or email us at hcmhelp@wiseconsulting.com.

Disclaimer: This document contains general information, may be based on authorities that are subject to change, and is not a substitute for professional advice or services. This document does not constitute audit, tax, consulting, business, financial, investment, legal or other professional advice, and you should consult a qualified professional advisor before taking any action based on the information herein. Wise Consulting Associates, LLC, its affiliates and related entities are not responsible for any loss resulting from or relating to reliance on this document by any person. Internal Revenue Service rules require us to inform you that this communication may be deemed a solicitation to provide tax services. This communication is being sent to individuals who have subscribed to receive it or who we believe would have an interest in the topics discussed.

Wise Consulting Associates, LLC, is a wholly owned independent operating subsidiary of RSM US LLP. Wise provides system and operations expertise in human capital management, workforce management and payroll management technology and compliance.

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