GLOBAL PAYROLL INSIGHTS 2018

BDO Global Payroll Services

GLOBAL PAYROLL INSIGHTS 2018
A growing industry with major challenges

Today, both consumers and providers of multi-country payroll services face serious challenges. For an industry which
is due to reach $5bn in value by 2020, comprehensive global payroll management solutions are surprisingly rare.

The numbers The issues The trends

• 90% of companies believe
cost savings can be
achieved by outsourcing
payroll operations
• 65% of global businesses
have disparate payroll
providers and systems
• 48% of employees in the
EMEA region have been
paid late or incorrectly1
• Payroll technology is
generally unsuitable for
complex multi-country
operations
• Most payroll providers
do not have a genuinely
global footprint
• Organisations face
increasing complexity
around local compliance
• Global payroll
management is growing
four times faster than
any other payroll sector
(20% CAGR)
• HR software suppliers
are increasingly
providing payroll
platforms through cloud
technology

1. Figures from Nelson Hall

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GLOBAL PAYROLL INSIGHTS 2018
Global payroll providers: choosing a model

There is no single right

answer when it comes to
choosing a global payroll Where are your employees located?
management model. The
crucial factor is to identify If you operate in challenging locations, such as the Middle East, sub-Saharan Africa or South
America, choose a provider who has solid expertise in operating payroll in these areas,
what you need from your
preferably with people on the ground to help when issues arise.
solution, and find a provider
which is best able to meet
your needs.
When considering outsourcing
their global payroll operations, How many employees do you have?
organisations should consider Realistically, large headcounts are likely to restrict your choice of providers in a given country.
some basic factors: However, a large number of countries with smaller headcounts presents its own challenges too.
Be sure that your chosen provider has really does have capabilities and experience across all
your territories, instead of being concentrated in just a few.

Who are your internal stakeholders?

Different global payroll models work better for different audiences as well as service needs. Do
you have in-country teams who will need local support with audit and compliance matters, or
are you more focused on increasing overall visibility of your payroll operations, including
reporting up to board level? It’s often a matter of balancing these and other factors, so your
chosen provider should be able to offer a comprehensive solution which can accommodate both
local and global needs.

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GLOBAL PAYROLL INSIGHTS 2018
Global payroll providers: the industry today

Global payroll providers fall into three broad categories: global processors, local processors and aggregators.

Type Features Strengths Weaknesses Providers

 Single provider and

single agreement means
• Single solution governed by a single
ease of contracting and
contract
Global processors robust governance
• Proprietary payroll technology
 Sophisticated
• Consolidated global reporting
technology (reporting,
employee self-service)
Х Very few providers have
truly global capability
• NgA Human Resources
(e.g. around 20 countries)
• ADP GlobalView
Х Often don’t serve smaller
• Ceridian
payrolls, focus on large
clients

X Multiple providers needed

• Small to medium providers in one for global payroll • Paychex (USA)
specific country  Local expertise • Liberata (UK)
Local processors X Internal coordination
• Customer manages the supplier’s  Presence in-country • Symphony House
performance & compliance resource needed from (Asia-Pacific)
customer

X Proposition is based
 Strong global reporting heavily on technology • Safeguard World
• Delivered by local processors in different
capabilities International
locations, managed by the aggregator X Governance, quality and
Aggregators • CloudPay
• Heavy use of technology for reporting  Some flexibility in local risk issues through • Celergo
and data aggregation providers exclusive use of local • ADP Streamline
subcontractors

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GLOBAL PAYROLL INSIGHTS 2018
Where BDO fits in: local expertise, central coordination, one BDO
BDO Global Payroll Services takes the
best elements of the local processor,
global processor and aggregator
models. We provide our clients with
an unrivalled solution in terms of
scale, quality and expertise.
Our model delivers services in-country
through our local BDO firms, coordinated
globally by a specialist service management
team.
This provides our clients with:
• The crucial local knowledge and in-country
support of a local processor
• The strong governance and simple
operations of a global provider
• The depth of data reporting provided by an
aggregator.
BDO has won the International Payroll Provider
of the Year award for the last three years,
most recently in November 2017.
World’s largest payroll provider
We have over 3,000 local payroll specialists in 162 countries, meaning wherever in the world
you need to operate, BDO are likely to be there
Physical presence in-country
BDO firms in every country will provide local-to-local support during implementation and BAU,
and any other assistance needed in-country – all in the local language (plus English)
Truly global capability
We operate payrolls for clients in the Middle East (including Iraq and Saudi Arabia), South
America and sub-Saharan Africa
Fully managed solution
Proactive global service management team monitors and manages your services globally,
providing you with a single point of contact and reducing the administrative burden of
coordinating multiple suppliers
Leading technology
Our technology combines the in-depth reporting and analytics of an aggregation platform with
uniquely advanced workflow capabilities, ensuring you have total visibility over your payroll
operations
Total global compliance
We will help you achieve and maintain 100% compliance with local regulations in all your
countries, with input from local BDO tax and employment specialists where necessary
Simple contracting
We offer a single global master services agreement, covering all services in all countries and
including robust service level agreements to ensure you receive a consistently excellent service
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FOR MORE INFORMATION:
SIMON WATSON
Head of BDO Global Outsourcing
+44(0) 118 925 4408 (DDI)
simon.watson@bdo.co.uk
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