Mary Brumm CPP Global Payroll Consultant and Educator Member of the National Speakers Bureau marybrummyahoocom Agenda Critical Success Factors Strategy amp Governance Importance of Data Collection ID: 725820
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Slide1
Going Global
0 Slide2
Presenter
Mary Brumm, CPP Global Payroll Consultant and Educator
Member of the National Speakers Bureau
mary_brumm@yahoo.comSlide3
Agenda
Critical Success Factors:
Strategy & Governance
Importance of Data Collection
What Role Does Culture Play?
Payroll Delivery Model
Global Compliance & Data Security
QuestionsSlide4
Global Payroll Strategy
What is your direction?
What is your current situation?
What is your vision, mission, timeline, and scope?Slide5
Factors That May
Affect Your S
trategy
Number
of
counties
Number of employees at each location
Expatriates
New acquisition or hybrid activity
Where is the payroll done
?
Local, regional, or centralized
Speed
of development
Company growthSlide6
Global Payroll Overview
Strategic Plan
Increased visibility
Virtual employees
Time zones
Language barriers
Communications
Compliance and taxation requirements
Infrastructure
Interfaces
Daily ChallengesStrategy / PlanVision
RoadmapOperating ModelOutsourcing / payroll deliveryDecision makersSponsorsSlide7
Operating Model
Sourcing
What activities will we do ourselves/ have others do?
Governance
How will we lead the function and manage related investments?
Infrastructure
What capabilities are needed to fulfill our strategy?
Process
Technology
Talent
Organization
How will work and information flow? Are there effective quality controls in place? Is decision-making distributed appropriately?
Which technologies are appropriate for delivering needed services? How can we optimize technology?
Have we organized the work to enable strategic services and superior administration?
Do we have the right skill sets, competencies, resource levels and deployment of staff?
Sourcing embodies the concept of process or activity ownership within an organization, externally by a third party or a combination thereof.All four components of the infrastructure must be fully integrated to ensure services are provided in the most seamless, efficient and cost effective manner.Governance is the act of leading the function and managing risk to the organization.The Organizational Model Impacts
Operating ComponentsSlide8
What do you need to consider when implementing a global capability?What level of transformation is desired?
Is the driver for change coming from HR or Payroll, or is it a business mandate?How important is cost reduction?What is the organizational culture, and does it align with an outsourcing approach?And how do you bring these considerations together?
When You’re Thinking
About DeploymentSlide9
Global Strategy Considerations
9
Do you have one global system of record for master data?
What talent resources and local experts do you have?
Do you have a clear roadmap?
Who is pushing for a global model?Slide10
Establish a Steering Committee
10
Identify key decision makers
HR, Finance, Legal, IT, Corporate Tax
Meeting frequency and communications to the teamsSlide11
Global Compliance Relationships
11Slide12
Payroll SetupSlide13
Clear vision and goals
Proactive working environment with clear expectations
Measure performance while making the appropriate changes when required
Increased operational efficiencies
Benefits of a Global Payroll StrategySlide14
Benefits (continued)
Effective in one-person payroll department or with multiple team members to set direction and goals/objectives
Platform to develop consensus among team members, clarity of direction, and understanding of one’s self in the processSlide15
Governance
Project Team
Steering Committee
Stakeholder Analysis
Vision, Mission, Timeline
Decision Makers
Who are your supporters? Slide16
Governance Model
16
Clear global process owner
Importance of senior support
Risk mitigation
Problem resolution and
escalation path
Clear communication
Change management
Executive support
Need
Complexity
Requirements
ComplianceEntity Registrations Slide17
What? Why? From Whom? Where?
Data Collection
17
Process Documentation Maps
Determine Current Processes,
Services, & CostsSlide18
Importance of
Data
Compliance
Baseline
Structure
Data tells your story and helps you determine what direction to take
Build a template as a guide for sharing informationSlide19
Costs — systems, vendors, time system, HRIS, resources, ID cost per pay slip and per employee
Fiscal year
Currency
Pay frequency
Employee counts per location
Work councils
Collective bargaining agreements
Language requirements
What Data Should You Collect?
Payroll Service Data
Service providers
Expats/
Inpats
Global mobility servicesBanking & funding informationPayroll calendar — identify deadlines & holidaysRequired reporting, monthly, quarterly, and annual forms
Wage type elements — taxable/non-taxablePayroll deductionsWork/pay rulesTime-off requirements Taxes — EE/ERRecord management and retention rulesData privacyPension plansReview and talk though processes
Customized formsBanking and funding informationInterface requirementsSlide20
Global Comparison
20
AUS
UK
UAE
SKR
KSA
JPN
Tax Year
1 July
6
AprilCYCY
CYCYLanguageEnglish
EnglishArabicKoreanArabicJapaneseCurrencyAUDGBPDirhamWonRiyalYenPay FrequencyMthlyFNMthlyMthlyMthlyMthlyMthly
DailyAgenciesATOHMRCn/aNTSDZITGOSINTALeave (Vacation – 1st year)4 wks5.6 wks (28 days)2 days per mth15 days (80% attendance)21 days10 days (after 6 mths)Slide21
Important to understand company and country culture
Awareness of culture is becoming more and more important
Acknowledge cultural differences, appreciate them and work to accommodate in a fair manner
Culture & Communication
21Slide22
Culture & Communication
22
Language
English
Requirement for Local Language Support
Cultural Traditions
Holidays — Chinese New Year, etc.
Dress EtiquetteSlide23
Culture & Communication
23
Building Trust
Gender
Business Cards
Research the Culture Before Traveling
Site VisitsSlide24
Payroll Service Model
How are you going to deliver payroll?
Regionally, centralized, or local?
In-house vs. outsource?
Who is responsible for what?
Service level agreementsSlide25
Local Payroll ProcessingSlide26
Global Payroll Slide27
Global Compliance:
3 Major Concerns
27
1
Data Privacy
2
Discrimination
3
Affirmative ActionSlide28
Data Privacy Around the World
Level of Regulation
80+ countries have adopted comprehensive laws regarding information privacy
The most restricted area is Europe
Some countries inside EU even more restrictive
European Union (EU) European Economic Area (EEA)
Other countries (USA…)
Countries with some regulation (Australia, Korea, Canada…)Slide29
Data Privacy Around the World
29
Common data protection rules:
Right to ACCESS
Right to CORRECTION
Right to OBJECT or CONSENT
Certain data can’t be recorded or stored in certain countries
Best practices for a multinational organization with employees in EuropeSlide30
30
Age discrimination is a growing challenge with forced retirement in some countries
Gender in many countries in Europe and Canada
Discrimination
Never export EEO strategy outside U.S. (except for expats)
Define a global discrimination policySlide31
Limited actions in countries like India, Brazil, Germany
Could be based on other criteria, such as gender
Need a local consideration because of the differences
Affirmative Action
Affirmative Action is only applicable in some countries, and varies in each country
Examples:
Brazil
Costa Rica
Guatemala
GermanySlide32
APA GPMI
APA ResourcesSlide33
Currency
convertor www.oanda.com/currency/converter/Public Holidays www.bank-holidays.com/
HM Revenue and Customs
www.hmrc.gov.uk/employers/index.shtml
Immigration Services
www.fragomen.com/
Ernst & Young Global Limited
www.ey.com/
Global Mobility Tax, LLP
www.glomotax.com/
ResourcesSlide34
QuestionsSlide35
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Thank you for your attention