Payroll complexity remains impediment for globalization

Payroll Complexity Index

NGA Research provides country ranking based on payroll complexity

22 Oct 2013

London, UK, Brussels, Belgium – NGA Human Resources, a leading provider of global HR solutions, today announced the results of its 2013 Payroll Complexity research providing insight on how complex it is to run and manage payroll across a range of geographies.  The research confirms that the complexity associated with workforce administration, compliance requirements and payroll regulation remains an impediment to the globalization plans of organizations.

NGA’s Payroll Complexity research ranks countries based on the various factors elements contributing to the complexity of payroll calculation. The research identifies 10 parameters related to payroll calculation, including union involvement, gross-to-net calculation, frequency of legal changes and updates, government declarations, and employee benefits, among others. The resulting composite index establishes the Payroll Complexity Index.

The ensuing insight enables 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 2013 Payroll Complexity Index is based on survey responses from a select group of international payroll experts.

Based on the survey, conducted between May and July 2013, the research found the following Payroll Complexity Index, as a composite of 10 contributing factors:

  1. France            
  2. Italy
  3. Germany
  4. The Netherlands
  5. Belgium
  6. India
  7. United States
  8. Luxembourg
  9. Spain
  10. New Zealand

The Payroll Complexity Index confirms that Western European countries typically face complex payroll processes compared to the rest of the world.  Despite the European Union’s move to further unifying its regulatory framework, EU member states still manage payroll regulation is still not aligned.

The research identifies the in-country payroll and tax regulations and the according frequent legislation updates as having the biggest impact on the overall payroll complexity. It’s hard for organizations to keep up with the pace of legal changes and the number of exceptions that are involved in the payroll process.

Michael Custers, VP Marketing at NGA Human Resources, comments: “Running payroll is a core activity for any organization, but not a core area of expertise of every organization. This research confirms that organizations will need to continue to shed off their administrative burden in order to be able to focus on their core business. With continuing globalization and increasing compliance requirements, we believe the global complexity of payroll will continue to grow.”

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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 Contact (US)
Michael Custers
+1 770 595 7897
Email: michael.custers@ngahr.com

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