Global Staffing Company Case Study
Multi-country Payroll Transformation for Global Staffing Company
Situation
Sarah, the Senior Payroll Manager at a global staffing company, oversees a team of 16, responsible for managing payroll across 15 countries. Sarah’s role involves ensuring smooth payroll operations, compliance, timely payments, and resolving business queries. Additionally, she manages projects such as establishing new payroll systems in Spain and the Netherlands, ensuring her team has the necessary resources and information. When the team is short-staffed, Sarah supports by processing payrolls herself.
Accuracy is a crucial metric for Sarah, and the team strives to catch errors internally before they impact employees. Sarah and her team are also accountable for processing, additional queries, and rerun costs, all of which are budgeted and closely monitored.
The payroll team is divided into two halves: one focusing on mainland Europe, which involves countries using activpayroll, and the other handling the UK payroll internally. This structure aims to ensure that all payroll operations run smoothly, taxes are up to date, and any business queries are resolved promptly.
As the global staffing company sought to improve its payroll operations, it became clear that its existing system, involving multiple providers across different countries, was not sustainable. The process was cumbersome, with each country having its provider, making it challenging to manage contracts, negotiations, and price increases.
Sarah was particularly aware of the inefficiencies and the strain it put on her team. The lack of a unified, streamlined system was evident. It was clear to the leadership at the global staffing company that to effectively scale their European operations, they needed a payroll provider with global reach and in-country expertise.
Complication
Managing payroll for the global staffing company is a complex task, compounded by using seven different currencies and eight languages across Europe.
In 2016, the company engaged activpayroll to conduct a comprehensive audit. This audit aimed to identify areas for improvement. It highlighted several previously unforeseen compliance risks, with each country having its regulations, and even within countries, multiple entities with unique rules and pension schemes added to the complexity.
Before adopting activpayroll, the company used different providers in each country, with some countries requiring multiple providers. This manual process involved creating Excel spreadsheets for each payroll and manually checking payslips, which was time-consuming and prone to errors. Sarah recalls the frustration of spending entire days inputting payslip data, only to find discrepancies that required rechecking and corrections.
The team's expertise and stability are critical for navigating these challenges. Specialists like a German payroll expert with 30 years of experience and a French payroll expert play vital roles in ensuring local compliance and efficiency. Losing such expertise can significantly impact operations, making team retention a priority.
Turning point: The transition to activpayroll
The search for a versatile system began with clear criteria: the solution needed to handle payroll for all their countries, support multiple currencies and languages, and provide a single English-speaking point of contact. This was crucial as Sarah recounted an experience where a provider did not speak English, leading to communication challenges that were only navigable via email.
The team considered several alternatives, including well-known providers like ADP and PeopleSoft. PeopleSoft initially seemed promising, as it offered European payroll services, but it soon discontinued support for European tax updates. This left the company in need of a more reliable and sustainable solution. The search continued with an emphasis on finding a system that could not only manage payroll but also streamline reporting and reduce the need for manual data entry.
activpayroll emerged as a strong contender during the selection process. A dedicated project manager on Sarah’s team was responsible for sourcing different companies and arranging demos. Each demo involved the entire payroll team, ensuring a thorough evaluation from multiple perspectives. activpayroll stood out during these sessions, particularly because of the deep knowledge and immediate answers provided by Alison, the owner. Unlike other providers that relied on sales managers who could not address specific payroll issues, activpayroll demonstrated an in-depth understanding of various payroll complexities.
Key decision making criteria
- Expertise and Immediate Response: Alison’s ability to answer specific questions about complex payroll regulations in real-time was a significant advantage. For instance, she could explain how activpayroll handled Poland’s PPK and Belgium’s holiday pay, showcasing a deep understanding of these local requirements.
- Staged Approach with Audits: Before fully committing, the company opted for an audit by activpayroll. This audit assessed their current payroll systems, identified compliance issues, and suggested areas for improvement. The thorough evaluation and actionable insights provided by activpayroll during this audit were invaluable, reinforcing the decision to move forward with them.
- Integration and Automation: The promise of seamless integration with the company’s existing HRIS system was a major selling point. The ability to automate report downloads and data transfers via SFTP meant significant time savings and reduced manual intervention, which was previously a major bottleneck.
- Support and communication: The move from multiple providers to a single point of contact for payroll queries was transformational. This simplification of communication channels was crucial for managing payroll across multiple countries with different regulations and requirements.
- Phased implementation: The transition to activpayroll was phased, starting with the integration of existing providers that were already part of activpayroll’s network. This allowed for some continuity, reducing the disruption typically associated with such significant changes. Sarah and her team appreciated the familiar faces and processes, which made the transition smoother.
- Ongoing challenges and adjustments: Switching payroll providers is a complex and intensive journey. Sarah noted that while some providers within the activpayroll network were extremely responsive, others were less so. This inconsistency in response times for queries was a significant pain point. Implementing a robust ticketing system to track and manage these queries became a priority. Such a system would ensure accountability and help identify bottlenecks, ensuring that issues were resolved within agreed timeframes.
- Support during audits - One of the most appreciated aspects of activpayroll was its support during audits. In countries like Poland, the payroll team's proactive involvement in statutory audits was invaluable. They provided necessary documentation and support, ensuring compliance and reducing the burden on Sarah’s team. This level of support was not uniform across all countries, but where it was present, it made a significant difference.
- The standardisation of reporting formats allowed Sarah and her team to view payroll data consistently, which was a considerable improvement over the previous system. Although there were initial disappointments with some reporting features, the overall benefits of having standardised reports that were easy to analyse and compare across countries outweighed these issues.
- The shift to activpayroll also transformed team dynamics. The automation of routine tasks freed up time for team members to engage in more meaningful work, enhancing job satisfaction. The team’s ability to handle a higher volume of payrolls without sacrificing accuracy or compliance was a testament to the effectiveness of the new system.
Resolution: Outcomes and impact
The implementation of activpayroll marked a significant turning point for the global staffing company, transforming its payroll operations from a fragmented, manual process to a streamlined, automated system. The benefits of integration, improved communication, and support during audits were substantial, enhancing efficiency and compliance across the board.
The automation of payroll processes had an immediate impact. The time previously spent on manual data entry and error checking was now available for higher-value tasks. Sarah highlighted the cultural shift within the team, noting that what was considered "busy" had changed dramatically. Team members could now handle more payrolls and focus on strategic activities like audits and compliance reviews.
After transitioning to activpayroll, the global staffing company experienced significant improvements in their payroll processes. The journey towards efficiency was marked by both expected and surprising outcomes, transforming how Sarah and her team managed payroll across 15 countries.
One of the most immediate benefits was the time efficiency gained from automating integrations. Previously, payroll processing involved manual data entry and numerous steps that consumed valuable time and resources. With activpayroll, integrations between the HRIS system and payroll became seamless. Reports could be downloaded automatically via SFTP, eliminating the need for manual report creation. This automation allowed the team to focus on more strategic tasks, such as data analysis and audit preparation.
Sarah noted that the ease of integration was particularly beneficial even for payrolls with smaller headcounts. Whether a country had a few employees or several dozen, the integration process was consistent and reliable. This uniformity ensured that payroll information was transferred securely and accurately, minimising the risk of errors.
Sarah noted the key impact of implementing on the business:
- Streamlined communication and standardisation: activpayroll provided a single English-speaking point of contact, which was a crucial improvement over the previous system where multiple providers were used. This change streamlined communication and reduced the complexity of managing payroll across different countries and languages. Additionally, the standardisation of reporting formats allowed Sarah and her team to view and analyse payroll data more effectively, despite their initial dissatisfaction with some of the reporting features.
- Maintaining relationships with providers: Interestingly, some of the providers the company was already using were incorporated into activpayroll’s network, which meant that not all relationships had to change. This continuity was helpful during the transition period, providing a sense of stability amidst significant changes. However, adapting to the new communication protocols, such as not being able to directly call these providers, required some adjustment.
- Support and responsiveness: A key aspect of the transition was the support and responsiveness of activpayroll. Sarah and her team valued the expertise and immediate answers provided during the initial demos by the owner, Alison. This level of understanding and support continued to be a strong point for activpayroll. However, there were inconsistencies in response times for queries, which remained a challenge.
- Future enhancements: The implementation of a ticketing system was identified as a necessary improvement. This system would allow for better tracking of queries and accountability, ensuring that issues were resolved within agreed-upon timeframes. Sarah emphasised the importance of adhering to service level agreements (SLAs) to meet the business’s expectations for timely responses.
- Audit support One of the most significant benefits of activpayroll was the support provided during audits. In countries like Poland, the payroll provider was proactive in participating in audits, providing necessary documentation, and ensuring compliance. This level of support was crucial, given the complexity and frequency of external audits in various countries. The ability to rely on activpayroll for timely and accurate information during these audits reduced the burden on Sarah’s team and ensured compliance with local regulations.
- Cultural and operational shifts: The transition to activpayroll also brought about cultural changes within the payroll team. The automation and improved processes allowed team members to handle more payrolls and focus on higher-level tasks. This shift not only increased efficiency but also enhanced job satisfaction by reducing the monotony of manual data entry and enabling more strategic work.
Sarah highlighted that the workload and expectations varied significantly among team members, especially those with experience in manual payroll processing versus those who had only worked with automated systems. Despite these differences, the overall impact was positive, with each team member now having more capacity to manage additional responsibilities and audits.
The transition to activpayroll underscored the importance of adaptability and continuous improvement in managing complex, global payroll operations. Sarah’s leadership and the team’s commitment to excellence played a pivotal role in successfully navigating this transformation, setting a new standard for payroll management at the global staffing company.
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