Global expansion is exciting for multinational companies to go through but handling the HR challenges which arise is crucial to the success of an expanding business. Most companies find themselves in situations where a lack of uniform in HR and payroll processes have become a significant concern affecting their regular daily tasks. Let’s review why HR and Payroll integrations are so essential for global expanding organizations.
The Importance of HR and Payroll Integrations
The roles of HR and payroll professionals has changed over the years, both have built their position as business-critical elements. Eventually, HR and payroll will share the same goals – to support employees within the company. To accomplish this, the HR team must work to drive both functions towards a more integrated and cohesive model.
A synchronized HR and payroll process is a firm base for effectively managing the workforce, while enabling the company to become more productive and meet its goals. By regulating and automating administrative tasks, HR and payroll can focus on value-adding activities such as employee engagement to strengthen internal relationship.
The Challenges Companies Face during Global Expansion
Global expansion is a huge step for any organization and can bring new types of worldwide HR management challenges. HR team’s focus on recruiting candidates, which draws their attention away from other key processes from completion. For example, businesses are often become overwhelmed with adherence to local employment laws, taxes, and payroll practices. Failure to comply with these rules and regulations could possess a major business risk.
The difficulty of completing international payroll can bottleneck the expansion into new profitable global markets, limiting business opportunities. Instead of trying to recognize and manage the volume of challenges when adjusting to various needs, the HR departments’ attention should be on more profitable tasks such as workforce management.
By implementing a uniformed HR management system, businesses can streamline the entire global workforce while minimizing the risks and costs involved with expansion.
Most HR teams wish the coordination with HR and payroll systems will solve all issues. However, companies often fail to extend their existing systems and implement them with this new integrated HR and payroll system as part of the global expansion. Consequently, traditional systems are often never connected and will eventually no longer meet the needs of the growing company. These challenges and barriers to be successful globally often come down to consistency and a lack of integrated solutions for all HR and other various needs.
Uniform Data Helps Businesses
The value of having access to all information relating to HR, managers, and employees should not be underestimated. Disconnected systems are rarely able to meet global HR requirements. Businesses may even find themselves in a situation where they collect and view lots of local data but have no global visibility. The resources required to manage all this complex data adds to the total cost of your solution, while also impacting the company’s ability to make accurate and timely business decisions. Disconnected systems not only increase the workload and administration costs for each individual employee but also affects the overall company growth.
By adopting an integrated HR and payroll platform, businesses can overcome these types of challenges and become more tactical in workforce management. HR staff members are often under pressure to show their value to the company, an advanced system empowers them to feel more confidant and hit consistent key performance indicators across the entire business. The benefits extend beyond only the HR management team and functions; standardizing systems gives companies a sharp global view on their employees with the necessary tools to make more informed business decisions.
Integrating HR and payroll systems together offers significant opportunities to improve processes to be more efficient, cost-effective, and consistently updated. When global operations are covered by the same solution, functions, and data, it’s easier for teams to be united and share best practices across the whole organization regardless of location.
One Solution for Businesses of All Types and Sizes
When selecting an integrated HR management system, companies should always be one step ahead of the competition. As the business grows, the chosen system must be able to respond to the growing demands of the workforce. Even though the system’s primary purpose should be to support the business tasks and functions, inflexible processes can also limit the company’s performance and agility. Therefore, it is essential that the system you select can work with all sizes and types of organizations across different countries.
Adopting a global HR system may seem like an enormous task to undertake which many companies are hesitant to take on. In these situations, it’s easier to move all regions onto a single platform all at once, meaning the team will feel the impact of major change only once. Working with an experienced HR software provider can ensure the shift is smooth and streamline, enabling HR staff to focus on other internal change management processes and make sure the global workforce is fully engaged.