Global Payroll Challenges – And The Solution!

Global Payroll Challenges

With businesses breaking global boundaries and penetrating the barriers to achieve excellence and better revenues, payroll processes are becoming more and more centralized. There are so many norms and rules that are now standardized for companies across the globe. These modifications in the global landscape have also impacted the payroll processes in various industries. For this reason, in this article, we will discuss global payroll challenges faced by organizations.

We have also explored the possible solution to payroll challenges through payroll services. Let’s dive in and start understanding how payroll service providers can prove to be a blessing in disguise.

Global Payroll Challenges Faced By Different Industries

There’s a change in payroll structure across countries. Every country and legislation is facing a complex payroll structure because of the increasing need for efficiency and security.

Here are some common challenges faced by HR managers when managing the payroll services of an organization.

1. Compliance

No matter how well the global payroll system is adjusting in your organization, you can’t afford it if it is hampering your compliance structure. Every country and state has different payroll challenges. For instance, the minimum wages act.

You can’t afford to ignore these acts. You need to maintain compliance to avoid heavy fines and penalties.

Even without the global structure, compliance is a pressing issue for every organization across the globe. In-house management and manual payroll calculations attract payroll mistakes. These mistakes lead to compliance problems.

When these compliance issues arise, you are bound to face penalties and fines. More than anything, you are bound to suffer reputational loss.

How will that happen?

If you have made a mistake in payroll and attracted a fine, your employees will get to know this.

Once they know, they can’t forget the information. This means that your employees will start judging your capability to correctly execute payroll-related tasks. If one of these people is impacted by your errors, they may even go to Glassdoor and post reviews about your company. These reviews will reflect on your image forever.

2. Global and Local Processes

The issue that organizations face today is integrating global and local systems. Of course, the global payroll culture is simpler and growing rapidly. However, don’t you think that this global structure is not really capable of meeting the demands of your organization? Every organization is different, your employees are different, and your state or country payroll structure is different.

So, organizations that try to fit into the global payroll structure often face issues. The idea here is to adopt the good things in the global payroll processes and modify things according to your company’s requirements.

For instance, if you have some full-time, some work-from-home, and some freelancing employees, you need a diverse payroll processing structure.

3. Accuracy

One of the major challenges faced by many across the globe is accuracy. Let’s be honest, you can’t completely avoid these issues with manual processing.

If your HR manager is calculating payroll manually at the end of every month, they will make mistakes at some point. Even when they check for errors, again and again, they can still make mistakes. It is only human. You need machines and tech to overcome this issue.

4. Costs

When you start thinking about reducing the headcount in your HR team, stop right there. Can you really afford it?

Is it possible for you to reduce people in your HR team and still fulfill payroll challenges? That’s highly unlikely.

Plus, you need much more than just reducing the headcount to optimize the payroll department’s costs. Here’s a list of things:

          • Maintain accuracy or reduce errors
          • Automate data entry tasks
          • Implement the latest technology
          • Reduce time spent on payroll
          • Avoid tech maintenance
          • Receive expert support

You can get all these things from outsourcing payroll services to a third-party. Below we have discussed how this can be beneficial.

How To Overcome These Challenges?

The best way to overcome these complex issues is to utilize payroll services.

What are payroll services?

Payroll services are similar to your in-house payroll practices, but these are executed by a third-party. There are an array of payroll service providers who have a team to look after your payroll activities.

Payroll Services includes the following:

        • Payroll calculations
        • Tax calculations
        • Tax filings
        • Deductions
        • Bonus management
        • Payslip generation
        • Payroll support to employees

These activities are completed by the HR department of your company on a monthly basis. Every month, your HR department calculates the salaries of employees based on their attendances and dispatches these on time. On the outside, there are just two steps to this task. But, in reality, your HR manager achieves a lot more.

Let us understand this clearly.

They keep track of employee attendance every month. Every day, they track whether the employee is in the office or not. If they are, then are they there for the full day? Based on these full-day and half-day leaves, payroll is calculated. Additionally, the HR manager also needs to consider comp-offs, paid-leaves, and sick-leaves of the employee.

Once the payroll is prepared, they then need to look after deductions from the payroll. This also includes quarterly bonuses and hikes.

If at some point, things seem off-track, they check and re-check calculations to make adjustments.

These tasks can be accomplished by a payroll service. Your HR will have more time for:

        • Employee management
        • Employee training
        • Employee orientation
        • Employee recruitment
        • Employee satisfaction

Payroll Services: Benefits of Outsourcing

If you are still having your share of doubts about the security of your payroll data, then read on. Check how outsourcing payroll services can be the best decision for your organization.

1. Time-Efficient

Payroll services are time efficient. Of course, at your payroll service provider’s end, their team may still be working the same number of hours. But your team is not. Your HR department only needs to fix a time, evaluate the payroll, give approval, and everything is done.

Once they are free from payroll-related tasks, they can focus on employee engagement, training, and productivity.

2. Cost-Effective

Similar to being time-efficient, payroll services are also cost-effective.

          • You are not spending on expert employees
          • You are not calculating payroll
          • You are not getting technology upgrades
          • You are not paying for the training and maintenance of HR employees
          • You can reduce the headcount in your HR team
          • You are not keeping updated with government rule changes
          • You are not generating reports
          • You are not paying for the paid or sick leaves of HR employees

When all these expenses are eliminated, your payroll service automatically becomes cost-effective.

3. Reduced Errors

Did you know that payroll service can reduce errors in calculations?

      • They have expert employees to overlook operations
      • They have the tech for automation

These two things help in reducing errors. These people are always updated with government norms and changing rules. They are the first ones to adopt new changes and avoid errors. Overall, you get better accuracy and management.

4. Security

As a payroll service provider, they have the responsibility of managing security. These providers are more equipped to keeping your data safe, as they have to take care of many other clients as well. They won’t leave loopholes in security, which can easily happen in-house.

Overall, your data will stay safe from theft, fraud, and unauthorized access.

5. Expert Advice

With payroll service, you also get experts. Your payroll service provider will connect you with the experts of their team. You can call these people whenever you need clarification on a new payroll rule or regulation. You can even call these people for advice.

Above all, you can be assured that these experts are overlooking your payroll processes.

Which Industries Can Outsource Payroll?

Ideally, any industry can outsource payroll. In fact, every industry is in dire need to use outsourcing payroll services to focus on the core activities of the business.

Think about it, wouldn’t you want to not think about salaries at the end of the month?

If you are in the IT industry, then as a business owner, you would rather spend money on a tech that will help your IT services. Isn’t it? Why would you buy automation tech for the payroll department? This is just not feasible for a small or medium organization.

Even when you are a big corporation, you can benefit from payroll outsourcing. Your team would be fully focused on employee satisfaction and engagement. Payroll service would help you perform better and increase productivity.


We are sure that you are already thinking about exploring payroll services. Look no further!

Explore Paysquare. It is the best payroll service that completes your payroll tasks with accuracy. All you need to do is set up approval methods, so that everything is under control. Whenever there’s a glitch or issue, you can immediately reach out to the Paysquare team to get a resolution at the earliest. In a time of need, our experts would guide you and help you reach a solution.

Are you interested in outsourcing payroll services?

Reach out to us today –