When leaders think about the emergence of global payroll in a business, on the one hand, it might seem like a good sign – because it means that the company has grown large enough to become multinational.
On the other hand, it also means that they will now have to face an additional complexity, including the difference in tax and labor laws in each country, as well as the need to keep track of numerous data streams – different spreadsheets and expense invoices in different languages and units of measure. Trying to maintain this manually can turn into a logistical nightmare, and with the limited resources, budget and workforce, is impossible to do.
So, what solutions are out there for ERP users? What can businesses do and whose steady hand can they rely on in the search for the right solution to help them master the global payroll?
A key practice in that journey is discussed by David Holloway, global payroll practice lead at CloudRock, in the webinar “Mastering Global Payroll: Strategic Insights for Choosing the Right Vendor”.
Start early, do your research and don’t forget the demos!
According to Holloway, organizations should first “take a look inside” and determine their exact needs and preferences. Organizations should “plan for success” by developing a clear statement of intent, appointing a skilled team to work on the project and establishing strong governance. Alongside this step, it is important to do thorough research on vendors and potentially “go and speak to the actual people who run the processes.”
Crucially, Holloway emphasized that organizations should not delay the research of system demos: “We want to know that [vendors have] got clients in your industry, that they’re a similar size, similar complexity. […] As you grow, you want your vendor to scale with you,” Holloway said.
Some of the things that users can look out for in demos are how thorough vendors’ customer support is, to what extent they care about data protection and governance, and what’s the disaster recovery procedure – in other words, what is their overall methodology and how their solution will fit into the specific objectives that you’d like to reap from the investment.
Additionally, it is necessary for users to think about requirements when choosing a global payroll vendor. Think about whether the vendor caters to the geographical locations of your organization, whether they provide treasury facilities, what their process around aggregated costs, headcount and reporting is and, finally, how connected they are to your current systems and applications.
During RFP and cost research, have lots and lots of conversations
After assessing your plan, goals, demos and requirements, there comes the stage of Request for Proposal (RFP). According to Holloway, identifying requirements before that stage can help ‘form’ the RFP because it will help you keep an open dialogue with your vendors. Specifically, it will allow you and vendors to highlight challenges you’re facing and assess their capabilities and your requirements against the ‘fit gaps’.
The practice lead said: “[In that process], you might want to choose a specific method, […] and you want to really document the gaps. The key piece is that you need to consider how significant that gap is, and whether that’s going to be a showstopper for you.”
Finally, buckle up for the beauty parade and ROI
Here comes the final stage: you’ve assessed all RFPs, costs, and requirements and had important discussions to determine your exact needs. How do you choose the final round of vendors and make a decision?
Here, Holloway said, being specific is key. First, it is best to limit your choice down to three vendors to work with a “manageable amount of people”. Next, you need to give vendors “plenty of warning” on what exactly you’d like to see in the demonstration. This way, you’ll be able to narrow down your choice toward that one perfect match that will end your search and help you start the actual process of deployment.
Once you’ve chosen your vendor, there comes the exciting stage: you get to discuss how this technology is going to meet the needs of your current and future payroll, set out the implementation plan timelines, how long these things are going to charge up and then provide the total cost of ownership.
From this point on, the world is your oyster.
Of course, that journey is not an easy one, and it is vital to assess your options, needs and goals thoroughly before making a choice in vendor and starting the implementation. This is why it is important to consult with experts like CloudRock who can point you in the right direction and find the solution that is perfect for your unique circumstances. With the right expertise, you can achieve a smooth journey toward the realization of your objectives.
