As a global payroll project enters its deployment phase, organizations typically seek a swift, streamlined implementation to minimize time to value. Yet failure to prepare for the rigors of rollout often leads to painful project delays, with issues showing up late in the implementation process.
Not only do these delays heighten the possibility of missing your go-live date, they mean a greater chance of increasing project costs — including those involved with retaining existing payroll systems for an extended period while problems are overcome. However, with a more thoughtful approach to planning and project management, organizations can avoid delays and save that time and money.
Here are three ways to avoid the most common pitfalls of global payroll implementation and keep your transformation project on the right track.
A data-ready human resources system containing up-to-date current and historical payroll information can make all the difference to an implementation project. Historical payroll data in particular is of crucial importance when setting up a new system, yet many companies find it challenging to obtain. Traditional payroll providers typically use an aggregator system, in which a company’s global payroll data can be spread across multiple local providers, rather than stored centrally. The result is a complicated, time-consuming process of requesting and collecting the necessary information — a challenge often exacerbated when organizations elect to implement new global payroll and HR systems simultaneously.
Alternatively, some companies may not store their global payroll data in their HR systems at all, instead doing payroll processing through multiple in-country teams, emailing data or completing spreadsheets on an ad-hoc basis. In these scenarios, your first step is to identify where your payroll teams are getting their data. The process is most likely not standardized, which can mean discrepancies between the data you hold at a global level and the data being passed between local offices and your existing payroll provider.
Rolling out a new payroll solution will always be a complex process. However, some countries represent greater implementation challenges than others. An organization setting up payroll in Brazil, for instance, typically must provide five years’ worth of historical payroll data, whereas entities in the United Arab Emirates may not need any year-to-date figures.
When it comes to establishing a deployment schedule, pairing a complex country with an easier one, regardless of geographical or cultural proximity, can be beneficial for the overall transformation project. Your implementation team gets to focus resources on the more challenging setup, while the overall project still rolls out two countries. This can help demonstrate progress and maintain a sense of momentum.
Acknowledging the local requirements in each of your territories also forms an important part of your ‘gap analysis.’ In other words, understanding the complexity involved helps determine the role your global payroll solution can and can’t play in each country.
Any significant business technology switch brings some resistance to change. When it comes to global payroll, that resistance manifests most often at the local level. Payroll team members in various countries may push back against the implementation of a new solution out of fear that their jobs will be impacted or because they feel discouraged by the prospect of re-learning established processes. Some local payroll teams may already be performing to a high standard and feel especially reluctant to change their winning formula, despite the needs of the broader organization.
A global payroll implementation brings with it many challenges, but proactive preparation of both your data and your people can ensure a smooth, seamless transition, delivered on time and on budget. If your project team has successfully navigated the initial stages of global payroll implementation — including solid business case development and thorough vendor evaluation — you’ll have the information needed to make deployment a success.