Cost Savings on the Payslip Platform

Cost management is a priority at every multinational company around the world -global payroll departments, like all other departments, will be asked to carry out their duties in the most cost-effective manner as possible.

They will therefore look to confirm if the processes in place are cost optimized and if not, what can be done to ensure that the delivery of global payroll services align with the overall long term cash flow and cost saving initiatives in place at the company.

We will explain how our global payroll control platform can help to introduce direct cost savings in the overall process of global payroll delivery, specifically when it comes to multi-country global payroll processing.

Time savings mean cost savings too

On the global payroll control platform , our international clients benefit from 100% fully automated processes. This is end to end automation, from pre payroll data gathering and cleansing right through to the sending of payslips and last mile reporting. Hours and days are saved in every payroll for every country so it is not hard to see how combining all of these hours can lead to cost savings every pay period which range from significant to massive.

For a client of ours, we calculated that we saved 7.5 days per month for them on payroll processing in a single country. This client has 17 different countries and at 7.5 days per month, this equates to 84 days a year approx.- and when you consider the average cost per hour of a global payroll professional is $35, then this equates to an annual saving of $374, 850 across all 17 countries.

Automated validations also reduce errors and exception investigation requirement, especially post payroll as they are caught earlier before payroll is authorised, payments are sent, or General ledger reports are produced. All of this adds to the cost savings.

Purpose built end to end automated processes - eliminating spreadsheets & manual work can lead to time savings of over 5,000 hours saved per year on payroll processing & report generation across 30+ countries.

Multiple areas for cost savings

Bank fees: The automated production of multi-currency and multi-country General Ledger and Bank File reporting saves considerable finance time and direct fees to local payroll providers. Payslip automatically generates inter-country bank file that saves 1.5hrs per month per country which can equate to savings of over $18,000 a year.

Audit Reporting:?The substantial and comprehensive audit functionality and self-service reporting reduces the need for external audit preparation effort and cost. With Payslip, you can achieve 100% audit readiness.

General Ledger Reporting: Our GL report tool can save a minimum of 8hrs p/m per country and one of our clients reported that this resulted in an annual saving of over $24,000 a year. On Payslip, there is no waiting or delays, you can access automated GLs at any stage in the payroll process. GLs can be sent direct to your finance software, ERPs or any 3rd party system.

Efficiencies of scale

Some cost efficiency gains might be less quantifiable but can be of genuine value over time and it is very important not to overlook them. It is often the case that global organisations incur costs related to payroll that are very avoidable if the approach to payroll that they adopt is technology driven. Here are a few examples of what we're talking about:

Self service employee access to their own data is also available on the Payslip platform. Enabling employees to access online payslips is good for employee engagement and it can also reduce the number of unnecessary queries being sent to the HR or global payroll department.

Increased productivity: Payslip technology often reduces the need to hire further global payroll professionals to handle increased workloads due to scaling into new countries .Our software scales the payroll system and not the manhours, so current global payroll professionals can leverage our innovative technology to do more in a more efficient way. Once a user is familiar with the system, they will be able to process and manage payroll for new countries, thus increasing payroll staff capacity

Identify opportunities for cost management: Using our global reporter tool, finance teams and CFOs can run real time country cost comparisons to identify which entities, countries or people on their payroll are proving to be the most expensive.

Avoid compliance penalties: Global payroll compliance and international regulatory obligations are a key part of global payroll delivery and management. These matters can be complex and tend to differ in each country. It is common for organisations to struggle to meet the standard reporting requirements in these areas and this can often result in financial penalties and reputational damage. On payslip platform, you are fully aware of your compliance deadlines and obligations in each country where you deliver payroll. This enables you to stay on top of your compliance obligations and avoid penalties.

This article originally appeared on payslip.com