Deloitte Shared Services, GBS & BPO Conference

Transcription

1 Deloitte Shared Services, GBS & BPO Conference Focus 10: Global Payroll: Making it work in practice Rebecca Mullins, Deloitte November 2017 Vienna, Austria

2 Contents Introduction 3 Global Payroll 6 Why Global Payroll 13 Global Payroll Considerations 15 Global Payroll in Practice 20

3 Introduction

4 Global Payroll Introduction Rebecca Mullins Associate Director 20 years payroll operations and consulting experience CIPP Fellow Payroll World Top & 2016 Leads the Deloitte UK Payroll Advisory Practice Experience: Risk reviews of global and regional payroll operations Vendor selection of global and regional payroll services Implementation of global and regional payroll services

5 Global Payroll Global Payroll Client Examples Global Insurer European and US Retailer Global Bank Global Manufacturer Global Workday Regional HR systems Global Workday Global SuccessFactors Regional shared service centres European shared service centre Mixed model for services Regional shared service centres Regional payroll strategies European payroll service Mixed model for payroll processing Global payroll service

6 Global Payroll

7 Global Payroll What is global payroll? Global initiative to consolidate payroll providers and implement standard processes, tools and data/reporting solutions.

8 Global Payroll What is global payroll? Does it mean payroll is outsourced to one vendor or moved to one payroll system globally? Possibly, but more likely it means A global governance structure Vendors consolidated or managed regionally In-house or outsourced solution Does it actually exist? It depends on Who you ask buyers or service providers The definition being used whether a single global platform and vendor is expected What can it achieve? Enhanced compliance Accuracy of Payroll processing Better control of financial resources Easier to manage operationally Improved access to Payroll data Streamlined global Payroll team and Operations

9 Global Payroll Global vs Regional Single vendor, providing services in all countries where the employer has employees. Vendors selected to provider services in a specific region.

10 Global Payroll Global payroll trends Organisations outsourcing all payroll processing by global region APAC 31% Organisations outsourcing all payroll processing by industry Consumer and Industrial Products 10% 10% Energy and Resources 5% Financial Services EMEA 47% 20% 10% Government and Public Sector LA 60% 5% Life Sciences and Healthcare Manufacturing NA 22% 0% 20% 40% 60% 80% 25% 15% Retail Tech, Media & Telecoms

11 Global Payroll Global payroll vendors Global Payroll Processor Locally Processed Payroll Payroll Aggregator One single in-house or outsourced solution under a single contract Own payroll technology Consolidated reporting Examples: ADP GlobalView, NGA Human Resources Small local providers specific to a country Customer manages performance and compliance Examples: Paychex (U.S.), Liberata (U.K.), Tilimatic (Finland), Symphony House (Malaysia, India, Japan) Network of providers managed under single contract (Gross-to-Net performed at local level) Data aggregation Consolidated reporting Examples: Safeguard World International, CloudPay, Celergo, ADP Streamline It is important that clients do not settle for a vendor that they know, but explore all of the options to find a best fit vendor for their needs.

12 Global Payroll Payroll service delivery models System Hardware System Software Payroll Process Payroll Process Flexibility Vendor Management In-House In-House In-House In-House High Low Few solution options Outsourcing or decentralized model may still be required Hosted Single Vendor Single Vendor In-House / Vendor Medium Medium Few solution options Outsourcing may still be required for certain countries In-house talent still required Outsourced Single Vendor Single Vendor Single Vendor Low High Minimal in-house payroll talent required Vendor management is critical Aggregator Multiple Providers Multiple Providers Multiple Providers Low High Vendor aggregates the data and provides summary information Levels of service depends on the client requirements Cloud-based global payroll models are limited at this time; however, it is expected that greater capabilities will emerge as the market continues to grow.

13 Why Global Payroll

14 Why Global Payroll Key Benefits Compliance Automation Payroll System Flexibility Automation Payroll processes, servicing and technology that is integrated between business units, suppliers and countries Compliance Effective control and processing which enable compliance at the local and business unit level Payroll System Sustainable, scalable, repeatable, request based services & processes which spans the Global Enterprise Flexibility Ability to effectively realign payroll processing as the business expands and changes Global Payroll Global Payroll is the management of financial and employee data across regions.

15 Global Payroll Considerations

16 Global Payroll Considerations Considerations: Shared Service Centres Does your organisation have a payroll shared service centre? Location of shared service centres by company size <1k 77% 23% 1k-4.9k 50% 50% 40% 5k-9.9k 60% 40% 10k-19.9k 25% 50% 17% 8% 60% 20k-49.9k 11% 67% 22% 50k-99.9k 20% 40% 20% 20% >100k 75% 25% Yes No 0% 20% 40% 60% 80% 100% No payroll shared service centres Payroll shared services centres only in NA Payroll shared servcie centres only outside NA Payroll shared servcies in both NA and other global regions

17 Global Payroll Considerations Considerations: Shared Service Centres Accountability Operating model Processes Governance Technology Strategy Shared Service Centre Rationalised / single vendor

18 Global Payroll Considerations Considerations: Governance Structure Example of a global payroll structure where a payroll aggregator is used: Global Governance Strategy, Policy, Standards & Rules and Costs Global Vendor Management Head of Global Payroll Regional Governance Implement Policy, Standards & Rules Regional Vendor Management Regional Payroll Managers Submit Payroll Changes to vendor Complete Initial Reconciliation Implement consistent Processes Global Payroll Processing Hub Day to Day Payroll Operations & Payroll Approval Control & Compliance Local Vendor Management Payroll Approval Local Payroll Owners

19 Global Payroll Considerations Considerations: Retained Tasks What tasks will be retained internally? Payroll responsibility / statutory compliance Data gathering / management Payroll accounting International assignee management Employee queries Compensation planning and management Pension administration

20 Global Payroll in Practice

21 Global Payroll In Practice Global Payroll Journey Strategy Organisational design Vendor selection and implementation Benefits realisation Develop payroll strategy Develop payroll roadmap for 5+ years Business case Designing shared service structure Designing governance structure RFP and vendor selection Programme planning Implementation Assessing actual benefits against business case Lessons learnt

22 Deloitte Shared Services, GBS & BPO Conference November 2017 Vienna, Austria November 2017 Vienna, Austria