It is well known among organizational leaders that labor costs are often the highest expenses. This includes employee salaries, benefits, taxes, and other related details in payroll. Surveys indicate that this expenditure accounts for 70% of the total organizational expenses.
Therefore, it is essential to involve a payroll service provider to fully support the payroll system in all aspects, including salary analysis and compliance with labor laws. While efficient payroll service providers can handle the initial data certification and accessibility, current business applications cannot work in isolation. Various departments, including HR, finance, marketing, and others, rely on specific data types for their operations. However, the overlapping and segregated data collection processes have led to the problem known as Data Silos, resulting in decreased work efficiency.
To lead a business towards success, it is crucial to integrate HR and finance. Quality personnel within the organization play a vital role in driving efficient growth. Therefore, developing a payroll management policy is highly important in facilitating organizational growth and development. This process requires collaboration between the HR and finance departments, both of which are critical to employee management. The HR department prioritizes the importance of employee management, while the finance department handles the payment aspect. The collaboration between these departments yields positive results in terms of Human Capital Management (HCM), which aims to enhance the quality and performance of employees. It not only improves work efficiency but also increases the return on investment (ROI). Internal surveys have shown that effective collaboration among departments significantly impacts organizational effectiveness, while working in silos leads to redundant work and unnecessary expenses.
If you are considering transitioning to an HCM approach, consolidating employee management systems on a single platform, there are factors to consider:
Choose a global payroll service provider Selecting a payroll system from a global service provider helps reduce costs and save time by working with a single provider that can cover worldwide services. They are also aligned with the changing employment laws and regulations and can provide accurate salary calculations tailored to specific regions. Having all payroll data recorded correctly on a single platform facilitates better understanding and informed business decisions.
Seamlessly connect departments A global payroll system supports the integration of various departments within the organization and ensures smooth payroll accounting. Therefore, it is crucial to check the system’s security and data accessibility features. Additionally, consider the system’s scalability to accommodate future business expansion.
Apply global standards suitable for societal contexts After planning the integration of departments, effective collaboration with the payroll service provider is essential for implementing and adapting the plan in real-world scenarios. A robust foundation of the organization’s working system will create a centralized platform for payroll management, ready to support the company’s expansion into diverse global regions with varying social contexts.