Getting International Payroll Off The “Starting Blocks” The NGA Way
NGA Human Resources has invested $multi-millions over recent years to establish a global payroll service delivery model :
- Regional Service Centres networked across all continents with integrated telephony, payroll integration software, service centre tools, predictive software and online support software
- Six sigma process design down to detailed work instructions for every payroll process, plus comprehensive staff development and training
- Legislative compliance standardisation and capabilities to deliver payroll in 150 countries around the world in 25 different languages
- Processing payrolls for 1 in 5 of the Fortune top 500 companies
Has this investment been worthwhile when we see the traditional business model for the Fortune 500 companies decimated by up-start companies like Uber, who have no assets nor employees, but yet valued at $40bn? This has gone to another level with Lyft, local people using their cars to provide lifts to other people in the community all done via an App, again a “start up” but one to rival Uber and already valued at $2bn. Another company, AirBnB, has achieved a portfolio of 1milion beds within 5-7 years, with little in terms of assets and employees; while the traditional hotel chain has taken over 50 years to create some 100,000 beds and many thousands of employees around the world.
Will the established Fortune top 500 be the same in the next 10 years or perhaps 5 years? How will people be employed in the future? Today all that’s required is a laptop, smart phone, and an internet connection. Are we to be working virtually within different companies around the world offering our services simultaneously to numerous organizations? For example, there are businesses today that display work opportunities on a Phone App and you simply select the company, type of work, and how many days you want to work, and if accepted, then you turn up to start work.
Trust is becoming the currency within a social network where we have “peer to peer” feedback; LinkedIn is a good example of how this has developed over the years. Maybe an employee record will accompany us throughout our working life, employers writing reviews, colleagues endorsing our skills and, as many people have already commented about the millenniums and their “tour of duty”, this could be a reality for all of us as we hop from company to company.
In terms of HR technology, we have seen HR in the Cloud with Oracle, SAP, and Workday re-designing how HR is delivered through mobiles and a “plug and play” model. This scalability quickly provides a global platform allowing for collaborative working, real time data, social networking and predictive analytics. SAP’s acquisition of Fieldglass is strategic in order to tap into the increasingly temporary networked nature of employment (30% growth over the next 3 years – Ardent Partners). There is a belief that companies are rapidly moving to more variable operating models with a rapid “ramp up and down” of infrastructure, talent, and expertise to accommodate changes in market dynamics, business needs, and special projects.
Another complete game changer for HR is staff engagement, for example, a global finance organization is abandoning all their staff surveys and replacing this with a real-time predictive engagement tool by Questback. We now have the “The Matrix” re-loaded along with Morpheus being the keeper of employee/customers engagement data. This is an example of a top Fortune company aiming to be “fleet of foot” and responding to variable market demands to sustain its competitive advantage via world class staff and customer engagement.
All these dynamics in the market provide exciting times for HR, however payroll is conveniently over-looked. In-line with the market, NGA has remodelled its business to focus on payroll and basic HR transactional activity, supported by its SAP payroll engine (euHReka) plus a global integration tool (Payroll Exchange) to capture Cloud HR data and create real time transactions across its global network of payroll service centres.
NGA has seen a significant increase in its Cloud Transformation Consultancy Services and experiencing a separation of HR cloud technology from payroll systems with a requirement for real time information and compliance in every country. Total cost of ownership falls, as more employees are able to complete transactions themselves through workflow authorization and on-line data. Furthermore, there are cost pressures on the Service Centres with Robotic Software Automation challenging the traditional wage arbitrage of low cost offshore locations.
Technology is playing a part in payroll administration and while Governments seek the convenience of collecting taxation through wages, there will always be a need for expertise in payroll processing and payroll software development around the world. Technology is facilitating payroll integration, process automation and service predictability. Once the “boring” gross to net process is complete payroll data is required in the HR cloud for analytics and on-line viewing of payment data. Keep the exciting HR software developments in-house, but ask the specialist payroll provider like NGA to provide HR/Payroll integration technology and to continue to deliver payroll in 151 countries (added 1 more while writing this article) along with the provision of a first class employee experience through its comprehensive global service delivery model, compliance and standards infrastructure.
Payroll provides stability in a chaotic world and NGA continues to invest in this marathon runner and while all around it, HR providers sprint in short bursts, payroll continues to stride on growing stronger and stronger as it evolves from country specific to regional and now global. It has definitely left the starting blocks, but as long ago as NGA has been providing payroll services (45 years) and its fundamental engine has the stamina for the long haul proving to be a good sure bet for the future ahead.