BDO GLOBAL PAYROLL SERVICES GLOBAL PAYROLL INSIGHTS 2018

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1 BDO GLOBAL PAYROLL SERVICES GLOBAL PAYROLL INSIGHTS 2018

2 1 BDO LLP GLOBAL PAYROLL INSIGHTS 2018 A GROWING INDUSTRY WITH MAJOR CHALLENGES Today, both consumers and providers of multi-country payroll services face serious challenges. For an industry which is due to reach $5bn in value by 2020, comprehensive global payroll management solutions are surprisingly rare. THE NUMBERS 1 THE ISSUES THE TRENDS 90% of companies believe cost savings can be achieved by outsourcing payroll operations 65% of global businesses have disparate payroll providers and systems 48% of employees in the EMEA region have been paid late or incorrectly Payroll technology is generally unsuitable for complex multi-country operations Most payroll providers do not have a genuinely global footprint Organisations face increasing complexity around local compliance Global payroll management is growing four times faster than any other payroll sector (20% CAGR) HR software suppliers are increasingly providing payroll platforms through cloud technology 1 Figures from Nelson Hall

3 GLOBAL PAYROLL INSIGHTS 2018 BDO LLP 2 GLOBAL PAYROLL PROVIDERS CHOOSING A MODEL There is no single right answer when it comes to choosing a global payroll management model. The crucial factor is to identify what you need from your solution, and find a provider which is best able to meet your needs. When considering outsourcing their global payroll operations, organisations should consider some basic factors: WHERE ARE YOUR EMPLOYEES LOCATED? If you operate in challenging locations, such as the Middle East, sub-saharan Africa or South America, choose a provider who has solid expertise in operating payroll in these areas, preferably with people on the ground to help when issues arise. HOW MANY EMPLOYEES DO YOU HAVE? Realistically, large headcounts are likely to restrict your choice of providers in a given country. However, a large number of countries with smaller headcounts presents its own challenges too. Be sure that your chosen provider has really does have capabilities and experience across all your territories, instead of being concentrated in just a few. WHO ARE YOUR INTERNAL STAKEHOLDERS? Different global payroll models work better for different audiences as well as service needs. Do you have in-country teams who will need local support with audit and compliance matters, or are you more focused on increasing overall visibility of your payroll operations, including reporting up to board level? It s often a matter of balancing these and other factors, so your chosen provider should be able to offer a comprehensive solution which can accommodate both local and global needs.

4 3 BDO LLP GLOBAL PAYROLL INSIGHTS 2018 GLOBAL PAYROLL PROVIDERS THE INDUSTRY TODAY Type Features Strengths Weaknesses Providers GLOBAL PROCESSORS Single solution governed by a single contract Proprietary payroll technology Consolidated global reporting Single provider and single agreement means ease of contracting and robust governance Sophisticated technology (reporting, employee self-service) Very few providers have truly global capability (e.g. around 20 countries) Often don t serve smaller payrolls, focus on large clients NgA Human Resources ADP GlobalView Ceridian LOCAL PROCESSORS Small to medium providers in one specific country Customer manages the supplier s performance & compliance Local expertise Presence in-country Multiple providers needed for global payroll Internal coordination resource needed from customer Paychex (USA) Liberata (UK) Symphony House (Asia-Pacific) AGGREGATORS Delivered by local processors in different locations, managed by the aggregator Heavy use of technology for reporting and data aggregation Strong global reporting capabilities Some flexibility in local providers Proposition is based heavily on technology Governance, quality and risk issues through exclusive use of local subcontractors Safeguard World International CloudPay Celergo ADP Streamline

5 GLOBAL PAYROLL INSIGHTS 2018 BDO LLP WHERE BDO FITS IN LOCAL EXPERTISE, CENTRAL COORDINATION, ONE BDO BDO Global Payroll Services takes the best elements of the local processor, global processor and aggregator models. We provide our clients with an unrivalled solution in terms of scale, quality and expertise. Our model delivers services in-country through our local BDO firms, coordinated globally by a specialist service management team. THIS PROVIDES OUR CLIENTS WITH: The crucial local knowledge and in-country support of a local processor The strong governance and simple operations of a global provider The depth of data reporting provided by an aggregator BDO has won the International Payroll Provider of the Year award for the last three years, most recently in November 2017.

6 5 BDO LLP GLOBAL PAYROLL INSIGHTS 2018 WHERE BDO FITS IN LOCAL EXPERTISE, CENTRAL COORDINATION, ONE BDO WORLD S LARGEST PAYROLL PROVIDER We have over 3,000 local payroll specialists in 162 countries, meaning wherever in the world you need to operate, BDO are likely to be there PHYSICAL PRESENCE IN-COUNTRY BDO firms in every country will provide local-to-local support during implementation and BAU, and any other assistance needed in-country all in the local language (plus English) TRULY GLOBAL CAPABILITY We operate payrolls for clients in the Middle East (including Iraq and Saudi Arabia), South America and sub-saharan Africa LEADING TECHNOLOGY Our technology combines the in-depth reporting and analytics of an aggregation platform with uniquely advanced workflow capabilities, ensuring you have total visibility over your payroll operations TOTAL GLOBAL COMPLIANCE We will help you achieve and maintain 100% compliance with local regulations in all your countries, with input from local BDO tax and employment specialists where necessary FULLY MANAGED SOLUTION Proactive global service management team monitors and manages your services globally, providing you with a single point of contact and reducing the administrative burden of coordinating multiple suppliers SIMPLE CONTRACTING We offer a single global master services agreement, covering all services in all countries and including robust service level agreements to ensure you receive a consistently excellent service

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8 FOR MORE INFORMATION: SIMON WATSON HEAD OF BDO GLOBAL OUTSOURCING +44 (0) This publication has been carefully prepared, but it has been written in general terms and should be seen as containing broad statements only. This publication should not be used or relied upon to cover specific situations and you should not act, or refrain from acting, upon the information contained in this publication without obtaining specific professional advice. Please contact BDO LLP to discuss these matters in the context of your particular circumstances. BDO LLP, its partners, employees and agents do not accept or assume any responsibility or duty of care in respect of any use of or reliance on this publication, and will deny any liability for any loss arising from any action taken or not taken or decision made by anyone in reliance on this publication or any part of it. Any use of this publication or reliance on it for any purpose or in any context is therefore at your own risk, without any right of recourse against BDO LLP or any of its partners, employees or agents. BDO LLP, a Limited Liability Partnership, is a member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. BDO is the brand name for the BDO network and for each of the BDO Member Firms. Copyright 2018 BDO LLP. All rights reserved. Published in the United Kingdom. HB010771