Speaker Mary Holland CPP Global Director of Strategy Development and Training Global Payroll Management Institute GPMI Hello China Spain French German Australian Russian Netherlands ID: 755040
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Slide1
Introduction to Global PayrollSlide2
Speaker
Mary Holland, CPP
Global Director of Strategy, Development and Training
Global Payroll Management Institute (GPMI)Slide3
Hello!
ChinaSpain
FrenchGermanAustralian
RussianNetherlands
Switzerland
Nee
Hau
Buenos Dias
Bonjour
Guten
Tag
Good Day
Привет
Gruezi
..
Goedemorgen
PrevetSlide4
Our Agenda
What does “Global” mean for your organization?
Types of EmployeesCultural Considerations
Communication
Variety of Organization ModelsSlide5
Global Payroll(The Perception)
This is what your CEO thinks:
Global Payroll = A single pay engine delivering net pay seamlessly across the globe
System / Provider handles all local currencies, languages, taxes
One multilingual call center able to transact and provide support across geographies
It’s not rocket science!Slide6
Business Focus
US Centric
Current operations are U.S. based but now you’re going global
This is the way corporate has always done it
We don’t need to change how we do things
International/Local
Centric
“This is the way it’s always been”
Our way is better
Mixture of Both
Which processes can’t change due to local/regional laws?
Can the system accommodate a mixture of both processes?Slide7
This is what your Local Teams / Stakeholders think
:
We’re different!
Our processes are too complicated
You
don’t have the expertise to manage local labor laws and tax regulations
Our
employees demand VIP treatment
If
it’s not broken, don’t fix it
!
Global Payroll
(The Perception)Slide8
Global Definition
Expatriates
Local Nationals
International Commuters
International
Multi-national
Etc
…….Slide9
“Employees”
Local
nationals (Locals)
Hired for jobs in their own country
Expatriates
(Expats)
US Citizen or permanent resident working outside of the US on temporary assignment generally greater than a year and less than 5 years
Inpatriates
Foreign national employees transferred to work in the home country of an international organization on a temporary or permanent basis
Third-country
nationals (TCNs)
Employees not from the home country or the host country
TCNs have traditionally been technical or professional employees hired for short-term
employment. Source
: SHRMGlobal Commuter Slide10
Global ConsiderationsSlide11
Global Organizations: Key Areas of Consideration
Corporate
Culture
Language
Time Zones
Cultural Norms
Communication Styles
Time Sensitivity and PerceptionsSlide12
Language
First thing everyone thinks when they hear “global team” or “global project”
The easy answer? English!
As language of business, of our company
Not everyone has same level of comfort in English
What about detailed, technical conversations?
And very heated exchanges?Slide13
Language
May require local language support
However, need to control the extent to which these occurWritten communications
Materials coming from a specific country
And materials being used for a specific countrySlide14
Time Zones
Working across time zones is a challenge in the best of circumstances
Keeping track of what time it is where
And then daylight savings time, various holidays,
etc.
Trying to find common times for calls
9am in NYC = 3pm in Paris, 2pm in London
But 6am in LA! And late in the day in India, middle of the night in Japan or Australia!Slide15
Time Zones
Accommodate all as best you can, but everyone will need to be
flexible:
Share the burden of inconvenience
And make sure you understand the difficultiesSlide16
Time Sensitivity and Perceptions
“Time is money” – an American mantra!
But to other cultures, may indicate our obsession with both
Not all areas react the same
way!Slide17
Time Sensitivity and Perceptions
Time can be fluid or static
Mediterranean cultures often accept arrivals well outside of scheduled times
But other European cultures expect punctuality
Asians generally timely
Indians not so much!
Understand the differences but set your boundaries
Critical to make your expectations known!Slide18
Discovery - People
Where is the payroll function being done today?
Local, Regional, Centralized
Do you have a global payroll owner?Are the business owners working together?
Countries, number of entities and
populations
Company growth plans
Are you in the merger and acquisition mode?
Language
Support
Country requirements for business operations
Employee CommunicationsSlide19
CultureSlide20
Culture
“Culture is, in the words of E.B. Tylor, "that complex whole which includes knowledge, belief, art, morals, law, custom and any other capabilities and habits acquired by man as a member of society.“
Remember you need to look at country and your company culture
Very important for global payroll operationsAvoid stereotyping
Consider providing the team with cultural trainingSlide21
Culture – Dress and Communication
Dress:First impression sets the tone
Dress code – Establish a professional appearance
Focus on the local dress codeCulture &
Communication
:
Communication styles defined by country or region
Some cultures “yes” means “I hear you”
Length of pleasantries varies
Level of tolerance of a foreign languageSlide22
Culture – Trust and Gender
Building trust
May be required before gathering informationCommunication effectiveness
Time and PatienceGender
Predefined roles for men and women
American women are viewed differently than other women
Understanding the differences between men and women
Understanding the complexities of the working relationships
Avoid stereotypingSlide23
Culture – Business Cards
Business cards
Recognized Method of Introduction with Business Associates
Best practice is for one side in each native language
Formal presentation
Remember to plan ahead and bring enough cards
23Slide24
Cultural Norms – Working Hours
Work habits and styles can vary greatly
Lunch is a great example
Working lunch is not acceptable in many cultures
Expected hours of work pose another challenge
Start/end times
Vacations
Holidays
24Slide25
Cultural Norms
Ways of dealing with management, assignment of accountability and responsibility, vary widely
“the sun will still rise tomorrow”
Need
to pay keen attention to ensure that differences are “real”
Viva la difference!
25Slide26
CommunicationSlide27
Be Cautious of Communication StylesSlide28
Communication Styles
It is very true that we all have different styles and protocols about communication
Americans tend to be pretty direct, “get to the point”
For the French, its all about “politesse” and being polite
Spanish are generally rather heated in discussions
Israelis are, too!
Germans are matter of fact about things
Indians are animated, polite and deferential
Asians
preferences are
relationship focusedSlide29
Communication Styles
Topics open for discussion in business and personally differ
Difficulties of people communicating in non-native languages increases potential for misunderstandings too
Accommodate different styles
Differences
Accommodations
DifficultiesSlide30
Service Delivery ModelsSlide31
Current State
Where is the payroll function being done today?
Local Regional, CentralizedDo you have a global payroll owner?
Are the business owners working together?
Countries, number of entities and
populations
Company growth plans
Are you in the merger and acquisition mode?Slide32
Global organizations must strike a balance between global philosophy and regional
implementation
Strength of
HR control
Degree of variability
High
High
Low
Corporate level
Business unit or
Regional level
Locally driven
practices
Low
Degrees of
standardization:
Corporate level
– What needs to be driven centrally and be the same for everyone
Business unit – What can be determined by each business unit
Locally driven practices
– Accommodating special local geography/location needs
Aligning Processes to
the Organizational
ModelSlide33
Impact of Globalization on Payroll
Inconsistent processes and business functions across legal entities, business units, and countries
Complex employment and taxation requirementsData privacy requirements
Resistance to change
How to handle countries with a small number of employees?
Do you have one global HR System of record or many?
Reconciling data differences between global HR systems and local payroll solutions
Moving applications will incur an implementation fee and risk associated with changing systems, visible to the employeeSlide34
Global Design Considerations
Regulatory compliance
i
.e., countries may require specific banking activities are performed within that country when servicing employees of that country. It is common that when serving German employees the relating banking activities are required to be performed within the country.
Data privacy and information management
Language and cultural requirements
Level of self-service utilization
Technology environment
34Slide35
Global Payroll
In
other words…
Where is payroll on the overall HR Transformational journey?
Decisions on payroll need to be taken in the wider context
Payroll transformation journey will be impacted or driven by overall HR, HR IT decision and timelines
Payroll Transformation Journey
Why?
What?
How?
Who?
These questions need to be addressed in the context of overall Business and HR strategy
Common, standardized, repeatable processes
Single HCM platform
Selected processes in Regional/ Global Shared Service Center
Outsourcing of selected processes
Outsourcing of HR IT platforms hosting & ongoing support
HR Transformation JourneySlide36
Global Vision(How do we get there?)
and the cycle
continues…
Take a hard look at where you are today:
Organization design
Process design
Technology infrastructure
Communication strategy and process
Open your mind to be where you want to be:
Business strategy alignment
New role for HR/Payroll
Redesign of processes
Reinforcement of infrastructure
Refocusing of communication strategy
Identify the tools to create your new reality:
Information/education
Data
Interactive tools
TransactionsCollaborationGlobal communitySlide37
Global Payroll Provider OptionsSlide38
Global Payroll Provider OptionsSlide39
Global Payroll Provider OptionsSlide40
Service Delivery Models
Centralized Regional (EMEA, APAC, Americas)
In Country
Combination of the aboveIt is important to define roles, responsibilities and ownership!Slide41
Global Business Models
HQ
S
S
S
S
Global
Strong HQ Control
HQ
S
S
S
S
Transnational
Local control, yet integrated
HQ
S
S
S
S
Multi-Domestic
Strong Local Control
HQ
S
S
International
Limited employee populations in countries (Expats)
Low
High
Low
High
Local Responsiveness
Integration
S = Subsidiaries
HQ = Headquarters or “Corporate Center”Slide42
MNC Business Model Alignment with Payroll Service Delivery Model
International Model:
Initial international expansion phasePossibly only limited sales or operations employees
Expats most likely
HQ still has much control
Low
integration
Low
local responsiveness
HQ
S
S
International
Limited employee populations in countries (Expats)Slide43
MNC Business Model Alignment with Payroll Service Delivery Model
Low
integration
Low
local responsiveness
HQ
S
S
International
Limited employee populations in countries (Expats)
International Model:
Possible Payroll Service Delivery Models:
Outsourced
Local in-county provider
Outsourced to accounting firm
Outsourced to “aggregator” providerSlide44
MNC Business Model Alignment with Payroll Service Delivery Model
Global Model:
Various global subsidiaries with the HQ having a major impact with local practices and policiesGlobal Model could also apply to a
Regional or Shared Service Center
approach
High
Integration
Low
local responsiveness
S
S
S
S
Global
Strong HQ Control
HQSlide45
MNC Business Model Alignment with Payroll Service Delivery Model
Global Model:
Possible Payroll Service Delivery Models:In-house or Outsourced: Centralized,
Regional, Local and Shared ServicesOutsourced
ERP
Payroll Service Providers
Local Vendors
Aggregators
S
S
S
S
Global
Strong HQ Control
HQ
High
Integration
Low
local responsivenessSlide46
MNC Business Model Alignment with Payroll Service Delivery Model
Multi-Domestic Model:
The subsidiaries operates with a high degree of autonomy from the HQ centerControl of payroll administration services is held at the local level
Low
Integration
High
local responsiveness
S
S
S
S
Multi-Domestic
Strong Local Control
HQSlide47
MNC Business Model Alignment with Payroll Service Delivery Model
Multi-Domestic Model:
The HQ or regional leadership role maybe one of high-level governanceOversight with compliance and interface
coordinating actions with HQ HRIS systems and other third party groups.
Low
Integration
High
local responsiveness
S
S
S
S
Multi-Domestic
Strong Local Control
HQSlide48
MNC Business Model Alignment with Payroll Service Delivery Model
Multi-Domestic Model:
Payroll Service Delivery Models:In-house or Outsourced: Centralized, Regional, Local and Share Services.
Outsourced, ERP, Payroll Service Providers, Local Vendors and Aggregators
Low
Integration
High
local responsiveness
S
S
S
S
Multi-Domestic
Strong Local Control
HQSlide49
MNC Business Model Alignment with Payroll Service Delivery Model
Transnational Model:
With the Transnational model, HQ and subsidiaries work in a collaborative approach with both systems, processes and oversight.Shared Service Centers work well and regional scope is defined by the global workforce footprint.
High
Integration
High
local responsiveness
S
S
S
S
Transnational
Local control, yet integrated
HQSlide50
MNC Business Model Alignment with Payroll Service Delivery Model
Transnational Model:
Possible Payroll Service Delivery Models:In-house or Outsourced: Centralized, Regional, Local and Shared Services.
Outsourced
ERP
Payroll Service Providers
Local Vendors
Aggregators
High
Integration
High
local responsiveness
S
S
S
S
Transnational
Local control, yet integrated
HQSlide51
GovernanceSlide52
Governance
Governance: the act of leading the HR and Payroll functions and managing related investments to optimize the performance of the assets, mitigate risk, align priorities with the business and fulfill financial requirementsSlide53
Governance Benefits
It is critical to put the appropriate governance objectives, structure and processes in place to ensure the HR/Payroll priorities are being effectively delivered
The appropriate governance model is also driven by the Organizational Model
Without appropriate governance, HR/Payroll runs the risk of allowing itself to be managed by its initiatives, rather than proactively managing the initiatives themselvesSlide54
Success FactorsSlide55
Critical Success Factors
Active corporate and local user
involvement
Development of global vision and strategy
Understanding critical and geographic requirements
Investigate and plan for geographic technical challenges
Identify and plan solutions for system gapsSlide56
Critical Success Factors
Plan for global functionality but accommodate local business processes
Invest in change management and communications
Create a good business case
Ensure good project planning and management
Implement and maintain a robust governance structureSlide57Slide58
STRENGTHEN YOUR
GLOBAL CONNECTIONS
Education
|
Publications
|
Networking Opportunities
Learn what they know —
join the global community
at GPMInstitute.com
Check out our new website!
http
://gpminstitute.com/Slide59
3rd Annual
Global Payroll
Management Forum
Compliant! Innovative! Resilient!
15-19 May,
2018
Gaylord National Resort on the Potomac
National Harbor, MD,
USA