Managing multiple suppliers tops poll of most challenging global payroll activities


The 2016 Global Payroll Management Survey reveals the five most testing tasks that global managers face on a day-to-day basis.

The biggest challenge faced by global payroll managers is managing multiple payroll suppliers across different locations, a study has revealed.

Next on the list, according to the “2016 Global Payroll Management Survey” is ensuring payroll operations are compliant with local rules and legislation, followed by creating management reports from disparate cross-border payroll data.

Finding effective ways to authorise and control the payroll process also proves testing for many, although adhering to multiple and varied payroll approval processes is not considered an easy option either.

Deborah Williams, head of global business services at TMF Group, which commissioned the report, said that for employers to balance their need for centralised global reporting while also meeting local in-country requirements, often proved a complex challenge.

“Add to that the complication of working with multiple payroll providers in multiple languages and currencies and it is easy to see why over half (56%) of the organisations surveyed are looking to engage technology-based solutions to deliver payslips or pay advice to their employees in future,” she added.

The report also revealed that just under half of the senior decision-makers from 165 multinational companies that took part in the survey still used email for payroll-related communications, despite the fact that it is inherently insecure. The figure rose to 61% for organisations operating in six or more countries.

Just under a quarter of respondents likewise indicated that they had failed to modify their security procedures for cross-border communications even though more secure means of data transfer was often available.

The study was undertaken by the Bloomberg BNA news agency, which focuses on legal, tax and compliance issues.