2 ways to stop cost inflation in your global payroll

Global payroll delivery and management can sometimes involve either hidden costs or costs that are not widely recorded are investigated. Cost inflation can creep into specific parts of the process and go largely unnoticed for long periods of time. Such costs need to be managed and properly scrutinised to see if they can be avoided.

In this short article, we're going to look at two ways in which cost inflation can happen across your global payroll process and ways to minimise or eliminate such costs.

1 Payroll cut off time penalties.

Payroll deadlines in your payroll calendar are often agreed upon during the during the implementation process with your service provider. These are the deadlines by which service providers or local country vendors require notifications about changes to be reflected in an employee's salary for that pay period. This can be manageable for data that does not change or vary month to month, but it is a different story when it comes to variable data.

Every payroll will have tight deliverables and cut off dates, and we are hearing more and more about how some of these cut off dates are unreasonable and unsustainable. The reason for this is that variable global payroll data such as commissions and bonuses are never really going to be ready for these strict cut off deadlines. So, it is inevitable that these deadlines are missed, and the result is a charge or second payroll cost applied to you by your managed service provider.

This is an unsatisfactory situation to find yourself in and the only solution is to take full control and have ownership of your cut off dates. You should not allow managed service providers to determine your payroll deliverable dates. It is far better to take back control over your processes, your vendors and your deliverables. The Payslip platform ?allows you to set your own cut off dates and manage your network of local country payroll providers in a way that helps you to avoid this kind of cost inflation. The Payslip platform is provider independent which means you can change providers anytime you feel their approach or methodology is no longer the right fit for your requirements.

2 Reduce costs with automation

Long and complex pay cycle times tend to result in a more expensive global payroll delivery and management process. By introducing AI powered automation you can dramatically reduce the pre-payroll data gathering and cleansing stage. When you fully automate this part of the process it can result in shorter pay cycles times which subsequently results in cost savings.

On Payslip, you benefit from an end-to-end automated processes - eliminating spreadsheets & manual work, reducing errors and saving time. This is cost management in action. 100% automated pre-payroll inputs from any source, with data validated at each stage in the workflow results in much faster pay cycle times. The automated outputs on Payslip include payroll payments, payslips , treasury & audit functions. The result is 4 days saved in every pay cycle, every country. You are saving time and money while running payroll in a smarter way.

This article originally appeared on payslip.com