Your one-click journey from payroll complexity to payroll simplicity.
In association with:
Key findings of the Global Payroll Complexity Index
Europe continues to dominate the Index for payroll complexity
Fastest movers come from the growth economies
Heightened anxiety around data ownership – who should / should not see data
GDPR has spurred rise in local and regional data protection legislations
Wider integration of payroll intelligence into business planning
Increase in complexity (adherence to rules) in growth economies
Rise in reward-led salaries
Increased use of robotics and process automation
Frequency of tax and legislative change is the umbrella challenge globally
Survey scope and volume
“There is nothing simple about managing payroll in Switzerland. We have 26 tax authorities and around 100 governmental social security carriers (AHV) – all of which utilize their own reporting forms and have variations in the data they require from taxpayers also for payroll related information”.
“I have just 330 employees, but they’re in 38 states with 48+ local tax jurisdictions. Registering, account set up and continued maintenance for all the jurisdictions is my biggest headache as a one-person department.”
“If I managed payroll in Quebec, I would rank payroll complexity in Canada 9 out of 10. As I don’t, I give it a four.”
Expanding global economy
Countries in Eastern Europe, South America and Africa have all increased significantly in payroll complexity. Their rise as international business centers has meant a complete overhaul of people and data laws, regulations and legislation. This alignment has created the greatest movement in the history of the Global Payroll Complexity Index
How we work and the way businesses are now structured has had a major impact on how people choose to be rewarded. The process, time and compliance challenge this presents to payroll teams has seen the need (and cost) of processing unique payroll calculations climb faster than in any previous Global Payroll Complexity Index.
To attract the new skills needed to succeed in the global digital economy, payroll teams are now having to manage salary packages that combine cash with benefits, reward programs and bonuses. Organizations in emerging economies have been forced to address minimum wage rates, working time regulations and collective bargaining agreements. The revelation of the gender pay gap in the UK has promoted a wider review of further workforce gaps across the world.
Rise in innovation
Traditional salaried and shift jobs are being automated faster than ever. The high risk, time and cost of managing high volumes of data, and the increased frequency of payroll, has contributed to the rise in robotics and automation in payroll processes. India is leading the way with new technology integration. Payroll automation is on the agenda in Europe, US and Australia in the next two to five years. The investment in cloud payroll processes is now equal, if not higher, than for on-premise solutions.
Recognition for data protection
GDPR is also going global. Its influence is making governments around the world accept that they have an obligation to protect the digital identities and rights of their citizens. Regulatory bodies across the world have tightened command and we have seen a rise in GDPR modelled legislation coming into play.
The value of payroll data has pushed it on to the boardroom agenda. Beyond protecting it, business leaders are asking for real-time reporting, to the micro-level. The investment in analytics tools looks to run in parallel with the integration of HR and payroll processes. This single source of people data is set to change the future paths of many organizations in the next decade, according to the Global Payroll Complexity Index.
“As globalization continues, payroll organizations will see the increase use of robotics, expanded reporting to your organization, artificial intelligence, managing risk exposure, increased government audits, and standardizing processes.”
“Organizations must now attract new skills, and this new, often younger talent is asking for a salary package that combines cash with a range of benefits, reward programs and bonuses. They are also less loyal to their employer, moving to a competitor for literally dollars.”
“ Your payroll process, and the data within, holds the answers to future workforce productivity and to ongoing business success. However, it’s the value of this payroll data that makes it so incredibly high risk for your organization. “
"What has been interesting in the 2019 survey is the shift from the number of countries to the number of cities that raises complexity. ‘Micro legislation’ is becoming typical and creating major headaches for payroll teams. In addition, GDPR is also going global. Its influence is making governments around the world realize that they have an obligation to protect the digital identities and rights of their citizens."
Payroll Insight Kit
NGA HR is uniquely positioned to help HR leaders unlock the true value of their diverse workforce, wherever they are. We focus on customer value, based on almost 50 years of experience in HR consulting, HR outsourcing and HR technology. Innovation is the foundation of our business and why we are recognized as a market leader in HR & Payroll.