It is a well-known fact that global payroll from the traditional providers is so expensive and painful to implement that it is only for the big corporates. However, as organisations of all sizes are expanding into new markets and operating internationally they cannot get away from their employer obligations to pay their people correctly and fulfil their statutory duties.
Internationalisation is more of an expansion of business from its home market into foreign markets. The decision to internationalise is one of the strategic decisions that have a fundamental effect on any firm and all its internal and external operations. Small and medium-sized businesses (SMBs) in the earlier stage of their lifecycle, are expanding internationally at a rapid pace. According to a recent study conducted, 1/4 of SMBs in the UK are looking to expand internationally over the next 12 months.
Most businesses expanding internationally typically start off hiring a local payroll provider to help them navigate the local payroll landscape and ensure compliance with local payroll laws and regulations. This beach head approach is responsive to business demands. However as the business matures central controls and standardised processes are required to provide better visibility on local operations and to increase the overall efficiency of the global payroll operations.
At this point the organisation may look at some of the traditional global payroll providers, but many businesses rightly baulk at the prohibitive direct and indirect implementation costs and ongoing fees. While they are seeking the benefits of an integrated global payroll solution, they simply cannot justify the costs and upheaval involved and make the business case work.
Small and midsize organisations expanding internationally need a flexible, cost-effective solution to connecting their global payroll landscape. A solution that leverages the investments already made into their local payroll infrastructure. A solution that accommodates a mix of in-house software and outsourced payroll providers. And a solution that is fast to implement and easy to change later. After all the focus should be on running the business not worrying about long and painful implementation programmes.
So what’s the connection to the feature image? Bill McLaren once said of Peter Stringer, center, “that if you caught him [often the smallest man on the pitch in arguably the most physical sport there is] you could make a wish”. Size did not matter to Stringer who had an illustrious international rugby career. And size should not matter when it comes to operating your global payroll in an integrated and efficient manner. Until now there had not been a real alternative for small and midsize businesses looking to aggregate their global payroll operations in a cost effective way.
Payzaar is an emerging alternative to the rigid and expensive lock-in model of the traditional players. Organisational size no longer matters if you want to connect your global payroll, Payzaar does it economically, flexibly and without the onerous lock-in contracts of traditional providers. Look out here for more.