Meta Description: Discover the latest findings from the 2021 EY Global Payroll Survey and explore how organizations can overcome challenges to shape the future of global payroll with innovative solutions.
Introduction
The landscape of global payroll is undergoing a significant transformation, driven by evolving workforce dynamics, technological advancements, and the lasting impacts of the COVID-19 pandemic. The 2021 EY Global Payroll Survey offers invaluable insights into these changes, highlighting the challenges organizations face and the strategies they employ to navigate the future of payroll. This blog delves into the key findings of the survey and explores how modern solutions like Shor are poised to address these challenges effectively.
Key Insights from the 2021 EY Global Payroll Survey
Impact of COVID-19 on Payroll
The pandemic has fundamentally altered how and where we work, presenting unprecedented challenges for payroll functions worldwide. Organizations are now grappling with:
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Hybrid Work Models: Evaluating the impact of flexible working arrangements on multi-jurisdictional payroll withholding remains the top priority. With 29% of employees expected to continue remote work and 48% adopting hybrid models, payroll systems must adapt to accurately manage diverse work locations.
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Regulatory Compliance: Keeping up with changing regulations is a significant challenge, with 37% of organizations lacking a clear action plan for hybrid work scenarios. Ensuring compliance across different jurisdictions has become more complex, necessitating robust payroll strategies.
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Talent Retention: The phenomenon known as “The Great Resignation” has intensified the need for agile payroll functions to handle increased transaction volumes and maintain employee satisfaction through timely and accurate payments.
Data, Compliance, and Payroll Functions
Accurate data management and compliance are critical for efficient payroll operations. The survey highlights:
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Poor Source Data: Disparate systems and lack of integration between Payroll and HR functions contribute to data inaccuracies. Addressing data quality through better alignment and technology integration is essential for reducing risks and enhancing payroll efficiency.
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Compliance Challenges: As organizations expand globally, the number of compliance requirements increases. Leveraging technology, such as AI-driven payroll solutions, and partnering with experts can help manage these complexities effectively.
Optimizing Payroll Operating Models
Determining the optimal payroll operating model is a common challenge for global organizations. Key considerations include:
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Outsourcing vs. In-House Processing: While 64% of organizations outsource some payroll operations, managing multiple providers can lead to challenges in vendor governance and data management. Streamlining the number of payroll providers and leveraging technology can enhance efficiency and reduce complexities.
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Shared Services Centers: The use of shared services for HR and payroll delivery has increased, emphasizing the importance of standardized processes and effective vendor management to ensure quality outcomes.
Overcoming Payroll Challenges with Shor
In response to the challenges identified in the EY survey, innovative platforms like Shor provide comprehensive solutions to streamline global payroll management:
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AI-Driven Automation: Shor leverages artificial intelligence to automate payroll processes, minimizing errors and ensuring compliance across various jurisdictions. This reduces the manual workload on payroll professionals and enhances accuracy.
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Integration with Communication Tools: By integrating with popular chat applications like Slack, WhatsApp, and Telegram, Shor allows businesses to manage payroll tasks seamlessly within the tools teams already use daily, fostering productivity and collaboration.
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Transparent Pricing: Shor offers an affordable and transparent pricing structure, with flat rates of $99 per employee and $20 per contractor. This eliminates hidden fees and provides cost predictability for businesses.
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Real-Time Processing: The platform ensures real-time payroll processing, which is crucial for maintaining employee satisfaction and compliance with regional regulations.
Future of Global Payroll
The future of global payroll lies in embracing digital transformation and adopting flexible, scalable solutions that can adapt to changing workforce dynamics. Key trends shaping this future include:
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Increased Remote Work: As remote and hybrid work models become the norm, payroll systems must evolve to accurately manage diverse work locations and comply with varying local regulations.
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Technology Integration: The integration of advanced technologies like AI and robotics will continue to enhance payroll processes, making them more efficient and less prone to errors.
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Focus on Employee Experience: Payroll functions will increasingly play a critical role in employee satisfaction by ensuring timely and accurate payments, thereby contributing to overall employee experience and retention.
Conclusion
The 2021 EY Global Payroll Survey underscores the need for organizations to adopt strategic, technology-driven approaches to manage the complexities of global payroll. Solutions like Shor are at the forefront of this transformation, offering innovative, cost-effective, and scalable payroll management tools that address the key challenges highlighted by the survey. By leveraging such platforms, businesses can navigate the future of global payroll with confidence, ensuring compliance, efficiency, and enhanced employee satisfaction.
Ready to revolutionize your global payroll operations? Try Shor today and streamline your payroll management with ease and efficiency.