International finance

If you are an international business and need to pay your employees on time and in local currencies, there are several things to consider. Global payroll is complicated due to country-specific regulations, a variety of formats and processes. However, prior to executing global payrolls, you should consider a few essentials. It is critical to take stock of how you manage your payrolls today, establish goals, and choose a structure. These all seem simple. However, if not answered correctly up front, you could be headed for a disaster.

1. Know Thyself

  • What are your current processes, systems, structure, capabilities, and deficiencies? Gain a clear understanding about what is and is not working. Are the systems you have in place, the ones you want to use going forward? Will they support your expansion? What is missing in your current process that will hinder your ability to manage payroll globally?
  • Are you looking for one system of truth? Ideally, do you want a single system, which will provide you with visibility, compliance and reporting?
  • Do you have expatriates? Mobile employees? How are you handling expatriates today? There are different types of expatriates, short-term, long-term, rotators, and host based. The most common compensation package is for long-term expatriates, who are abroad typically for more than a year and less than five years.

2. Know Your Goals

  • Who are your stakeholders?
  • Should your international partners be involved? Do not forget IT, HR, Finance,

    and Operations.

  • What is driving them? What are their business goals and how do they tie into

    global expansion?

  • What is most important? Compliance, visibility, integration with an HCM (for one

    system of truth) consolidation, reporting, human capital management.

    Standardized and consistent processes across countries to reduce risk.

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