Analyses & Studies

All-in-One Payroll: Why 300+ HR and Finance Leaders Say it’s the New Standard

On average, companies use six different tools to manage payroll, with 74% handling it regionally or locally. This fragmented approach—combined with the fact that half of organizations use a hybrid internal/external management model—has left much room for improvement.

In search of a solution, 97% of HR leaders point toward an all-in-one system, citing positive impacts ranging from compliance to employee experience and beyond. This is according to a commissioned study conducted by Forrester Consulting on behalf of Deel (January 2024) that surveyed over 300 HR and finance leaders from around the globe.

Stronger compliance

For 34% of HR and finance leaders, ensuring adherence to regional compliance requirements is one of the most challenging aspects of global payroll.

When a company operates in multiple jurisdictions, each with its own set of tax laws, reporting requirements, and statutory regulations, staying compliant becomes significantly more complicated. One-quarter of HR leaders say they’re facing compliance challenges with new employee onboarding, while 43% cite difficulties managing payroll and statutory reporting archives for internal and external auditing.

By using one global payroll solution, updates to tax laws and compliance regulations can be centrally managed and applied, making it easier to stay current on a global scale.

8 out of 10 HR and finance leaders agree that consolidating global payroll into one solution would positively impact adherence to regional compliance requirements. Digging deeper, one-quarter of respondents say it would help them mitigate compliance risks, and almost a third believe they would benefit from reduced complexity.

More accurate global payroll data management

Managing payroll data across different regions comes with its challenges. Key issues include syncing HR and payroll data between platforms, which 43% of respondent organizations struggle with, while 32% need more visibility of employee and payroll data.

As a result, over half of HR and finance leaders want to prioritize improving payroll reporting accuracy and standardization/reconciliation in the next 12 months.

By outsourcing to an all-in-one global payroll solution, 88% of HR leaders believe they can greatly enhance global payroll data management by outsourcing to an all-in-one global payroll solution. Taking this step can support easier decision-making, improve data accuracy, and ensure real-time data is easily accessible and compliant with global standards.

Smoother processes and workflows

Over the next year, 63% of HR and finance leaders aim to improve their global payroll efficiency and workflows. This goal stems from a common challenge faced by 44% of multinational respondent organizations: the inefficiency of multiple payroll systems.

Using fragmented payroll processes across different systems often complicates payroll operations and increases the risk of errors, impacting overall productivity and compliance. An all-in-one system can help address these challenges, with 88% of payroll leaders stating that consolidating global payroll into a single solution positively impacts process improvement and automation.

An all-in-one global payroll solution streamlines processes and workflows by integrating automation across all payroll functions, such as calculating pay, deductions, and taxes for different regions according to their specific regulations. As a result, it reduces manual entry errors, speeds up the payroll process, and ensures consistency and accuracy across all locations.

A more positive employee experience

An all-in-one payroll system provides better support, processes, and opportunities for global teams, building a more positive employee experience throughout the organization.

For 46% of HR and finance leaders, one of the most significant challenges of global payroll is maintaining a consistent employee experience across all geographies. An all-in-one system tackles this by standardizing payroll processes, reducing errors and inaccuracies, and providing faster vendor support for all workers.

8 out of 10 leaders also say that consolidating global payroll into one solution would help them answer country-specific HR questions from employees. Since a unified system stores all regional information in one place with a high degree of accuracy, HR and payroll teams can offer clear and precise responses to employee queries, boosting workers’ trust and satisfaction.

HR leaders also say that an all-in-one system enables better employee mobility (37%) and onboarding (85%). Employers can move workers around the world without the usual administrative hurdles, keeping their organization agile and competitive. Meanwhile, the centralized onboarding process enables managers to integrate new employees from any region quickly and efficiently.

More money and time saved

According to the Forrester report, 85% of HR and finance leaders believe that consolidating payroll into one solution would have a positive impact on administrative costs. This aligns with the goal of 40% of organizations to lower software expenses in the coming year.

Many teams—global or not—spend an unnecessary amount of time and money rectifying payroll mistakes. In fact, 36% of HR and finance leaders say payroll errors and inaccuracies are one of their biggest challenges. An all-in-one system helps address this by minimizing the risk of errors that can arise from handling payroll manually, such as underpayment, overpayment, and improper taxation.

Another benefit of moving to a single global payroll solution is time savings in payroll administration, highlighted by 37% of leaders. An all-in-one system eliminates the need to maintain several regional payroll systems, uses automation to speed up the payroll process, and frees up your team to focus on other initiatives.

Easier route to hiring abroad

Global hiring is top of mind for many organizations, with 48% aiming to increase their global employee footprint in the next year. And for 88% of HR leaders, consolidating global payroll into one solution would have a positive impact on the process.

A global payroll solution makes it easier for growing teams to manage various tax and labor requirements when hiring abroad, as they are typically backed by local tax experts and legal specialists. As a result, companies can more confidently expand and hire in new regions they may have previously considered too complex or risky.

30% of HR and finance leaders also say that consolidating global payroll can enable more competitive hiring strategies.

In a world where companies everywhere compete for the best talent, being able to run payroll smoothly and transparently can make a company more attractive to candidates. Organizations can also easily localize their job offers to match the specific pay and benefits mandated by the candidate’s local government, ensuring compliance in every market.

SOURCE: deel.


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