NGA Payroll Complexity Research 2014

Payroll Complexity

Growing regulatory and reporting requirements increase payroll complexity globally

08 Dec 2014

December 8 2014, London, United Kingdom – NGA Human Resources, a leading provider of global HR solutions and services, today announced the results of its Global Payroll Complexity Index 2014. This research - based on the in-country expertise of more than 800 payroll experts across the world - provides insight on how complex it is to reward an international workforce. The results of the 2014 survey confirm that organizations need to have a deep understanding of the characteristics of local payroll management in order to be able to successfully expand their businesses internationally.

According to the Global Payroll Complexity Index 2014, the Top 5 of most complex countries to run payroll are the following: 

  1. Italy
  2. Germany
  3. France
  4. Belgium
  5. Australia

The research confirms that in general Western European countries have a more complex payroll process when compared to the rest of the world. NGA believes that this relates to the nature and history of the various legal traditions in Europe: despite the European Union’s ongoing efforts to further unify the regulatory framework, the ways in which member states manage payroll are still not aligned.

As a return of the economic downturn, NGA observes a growth in regulation and reporting requirements across the countries surveyed, increasing local payroll complexity.

At the other end of the spectrum, Asian payrolls are the easiest to manage across the globe, combining streamlined payroll processes and straightforward reporting procedures. This is not surprising, as these countries are making huge efforts to attract foreign businesses, to streamline payroll processes and to ease the administrative burden for organizations that want to grow in these areas.

The objective of NGA’s global payroll research is to help enable internationally operating organizations to be better prepared when venturing into new geographies and to better understand the complexity of payroll when developing plans for overseas expansion.

The complete 2014 Payroll Complexity Index research results can be downloaded here: http://resources.ngahr.com/payroll-complexity-index-2014-full-report.  NGA’s 2014 Payroll Complexity Index compiles the payroll complexity of 35 countries into a global ranking and looks into the complexity associated with workforce administration, compliance requirements and payroll regulation.

The report offers an overview of which geographies are more complex than others when it comes to compensating an international workforce. It includes a global overview and ranking of each country based on its payroll complexity, as well as a more detailed description of the impact of categories influencing payroll complexity: managing employee data, managing payroll data, the payroll calculation process, government reporting and declarations, and geographical influences on payroll.

Through each of these categories, more than 20 parameters have been analyzed, including employee populations, payroll runs, gross-to-net calculation, legal/HR changes, and reporting frequency. The combination of all above aspects resulted in the Global Payroll Complexity Index 2014.

Michael Custers, SVP Strategy and Marketing at NGA Human Resources, comments: “Although most organizations don’t see payroll as strategic, understanding the various degrees of local payroll complexity provides a company with substantial economic, process and cultural insight and can help organizations in their globalization efforts.”

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About NGA Human Resources
NGA Human Resources is a global leader in helping organizations transform their business-critical HR operations to deliver more effective and efficient people-critical services.

We help our clients become better employers through smarter, more streamlined business processes — to save money, manage employee life cycles and support globally connected, agile organizations. This is how NGA makes HR work.

What sets us apart is The NGA Advantage. It’s a combination of deep HR experience and insight, advanced technology platforms and applications and a global portfolio of flexible service delivery options.

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Media Contacts:
Manish Grover
Tel: +44 (0) 7983-453962 (BST)
Email: manish.grover@ngahr.com

Michael Custers
Tel: +32 (0) 496 277 221 (CET)
Email: michael.custers@ngahr.com