From local compliance to reporting needs, global payroll comes with its own set of challenges.  

With new businesses emerging every week, it’s no surprise that online searches on Google for payroll support over the last 3 months have surged; with a 200% increase for ‘global payroll support’ and a 24% increase for ‘global payroll’. 

It’s no surprise to see online searches reach an all-time high for global payroll support, as it can quickly become complex, especially if you’re scaling up fast. If you’re expanding your business, your payroll must be set up correctly. After all, an accurate payroll is what keeps your employees paid on-time.  

Global payroll implementation mistakes are very common – fortunately, there are steps to take so your global payroll implementation is a success. Here Global Payroll Consultant – and CEO – Simon Bradbury from Global HRIS – reveals the biggest payroll mistakes to avoid in 2022. 

Six global payroll implementation mistakes to avoid 

Lack of planning:
Although you’re keen to leave your old payroll behind, you can’t rush change. No matter the size of your company, start by mapping out your existing processes. 

Planning your project is key to any successful transition. You should consider any stakeholders who will be impacted by the switch. Also, check the availability of staff working through the transition. Finally, you will need all data available from your current provider. All these steps will help you create a complete timeline for the switch. 

You should speak to others who have gone through a similar project. From our experience, it is easy to underestimate the work involved in this process. For instance, some teams do not allocate enough time for the project to be completed. A successful change relies on several resources, technology, and a detailed plan. If you’re unsure, ask your new provider for their advice. 

Not maintaining data integrity:
Before you switch your payroll, take the time to cleanse your data. Checking for any errors will help you in the long-term. If your data has any errors – and it’s carried into your new system – it will make any errors harder to resolve. Your global payroll implementation project is the best time to check your data. 

Data cleansing plays a key role at every step of your project. Firstly, find any missing payroll fields and remove any data you no longer need. Finally, request any useful documents from your current provider. This will ensure you have all copies of payslips for all employees. 

Cleaning your data provides key benefits: it protects your business’s reputation and reduces compliance risks. Data that is relevant, clean, and up to date will lower your risk of mistakes. 

Integrating with internal processes:
Switching software can be a challenge. Although you think the software is right for you, it must meet all business needs. For instance, you will need to check that it will work with your IT and Legal team’s current processes. 

Any new system must also fit in with your business. All too often, everyone will focus on whether the new system correctly works. Only the wise will consider how the system will affect the whole business and any relevant processes. 

Remember: old processes should be slowly phased out to avoid any errors. All team members working with payroll must be trained up on the new system, too.  

Skipping payroll testing:
One way to know if your new system will work is via a testing process. Carrying out parallel runs during the testing phase should find any issues with your data. Failure to spot these errors could cost your business more in the long term. 

Payroll testing can be complex, but it’s a key step in any successful change. Here you can compare your results and easily spot any errors. It doesn’t matter who your payroll provider is, we can test your payroll. Training is also available for your business, so get in touch today. 

Poor leadership:
Managing a global payroll project requires a lot of effort. Changing requirements during the project and managing those involved can get tough. 

As a project leader, you must share the benefits of your new software across the business. Establish reports for key stakeholders that show the progress of the project. Secondly, note down any new processes involved in your new system. 

Not prioritising change management:
Change management is important for any payroll project. However, it’s a crucial part for all global implementations. Switching to a new system isn’t easy for global businesses – especially when it comes to payroll. 

Choosing to embrace transformation is half the battle. Once you’ve decided to update your processes, it’s time to ensure that the switch is as smooth as possible. That’s where a smart ‘change management’ strategy comes in. 

Firstly, it’s easy to misjudge the impact of a change in global payroll. Be mindful of all the various teams and processes that will be impacted. Make sure that you listen to any concerns and be as open as possible. 

Secondly, spend time defining what processes you’ll have in place. For instance, finalise how many vendors, systems, and touch points you have. This will make it clearer for those involved.