New research released today by global payroll and HR solutions provider, SD Worx, shows that almost two-thirds (65%) of global organisations are using multiple payroll systems across different geographic markets, leading to inconsistency, inaccuracy, and lack of global visibility. More surprising still, is the finding that more than 5% of respondents admit to having no automated payroll system in place whatsoever, and rely solely on manual processes.
SD Worx’s research, which was conducted last month, polled 500 payroll and HR leaders working within global organisations, and looked to identify how modern multinationals are managing their payroll needs as the business world becomes ever more disparate and global.
Remarkably, despite more than 90% of respondents indicated that one global payroll system delivers optimum business benefit, less than a third (29%) of global organisations have one single system of record in place that can offer all-encompassing payroll services on a global scale.
When respondents were asked about the key issues they face as a payroll professional working in a multinational organisation, well over half (56%) of respondents admitted to having problems with payroll accuracy across different geographic markets. Inconsistencies with the provision of high service levels was also cited as a top concern by 42% of those surveyed, and just over a third (34%) indicated payroll was too cost heavy. Other key issues included time-consuming partner management (29%) and lack of international reporting capabilities (20%).
Thierry Vanbever, Director Global Services and Solutions at SD Worx, commented:
“This research shows that, staggeringly, most global organisations have not yet woken up to the fact that ineffective payroll systems are eating into business profit by increasing both cost and complexity.
“This issue needs to be elevated to further marry the HR department with the C-suite agenda – only then will the gains of having one single source of payroll record be fully understood and appreciated by those who have the greatest ability to change business strategy and achieve better long-term outcomes.”