Top Challenges in Global Payroll Management and How Workpay Solves Them

Crossing borders to take advantage of talent has proven helpful for many businesses. Remote hiring from different countries results in reduced costs, better productivity, and higher skill values. Similarly, employees enjoy benefits such as reduced commute costs and the opportunity to work with companies that align with their career goals.

However, global remote work comes with challenges. Engagement is a top concern as communication is not face-to-face. Similarly, the lack of a physical office setting limits employee engagement opportunities. In addition, the differences in time zones and the 'remote' setting could make it difficult for employees to maintain a good work-life balance.

One of the top issues that affects employers and employees is payroll management. Managing payroll has proven difficult, resulting in late and inaccurate payments that affect the business in multiple ways.

But like every problem in the business world, there is a solution, and global payroll management's is Workpay. So how does Africa's top HR platform make things easier for businesses with employees in multiple countries? Keep reading to learn!

Global Payroll Management Challenges

Transparency and Visibility

Maintaining clear oversight and ensuring all relevant parties have accurate and updated payroll information is challenging.

Companies struggle to provide clear and accessible information about the payroll process, including deductions and calculations. It can be due to the complexity of regulations among countries and the dispersion of data among different systems and departments.

The lack of transparency could lead to employee distrust, leading to disputes and decreased morale, affecting productivity. It could also mean challenges to remaining compliant.

Similarly, when payroll data spreads across different systems, having a clear view of the process becomes challenging.

Differences in time zones also make it challenging to maintain real-time visibility. A lack of oversight could mean errors, delays in addressing issues, and uninformed decision-making.

Workpay’s Dedication to Transparency

Workpay's payroll management comes with convenient features that maintain visibility and transparency.

For starters, employees have easy access to payslips through the platform. They can view and download them in real-time from anywhere. Secondly, employees can access their payroll information online and through the app at any time.

Third, employers have access to ready-to-download reports with all the details on the payroll. Lastly, Workpay’s payroll management is fully integrated, streamlining the process into a single platform and making it easy to oversee the whole process.

Data protection and security

Digital enhancements are a double-edged sword. On the one hand, it means automated payroll, easier and faster HR processes, and access to the data required for running payroll.

However, it also comes with the challenge of data security and maintaining confidentiality. There is a need to protect employee data and ensure confidentiality among employees.

Companies are at risk of data hacking, which could mean leaks. Data leaks affect the company's reputation and could lead to legal action by employees.

In addition, running payroll globally means complying with different security laws. Many businesses struggle with this, as some security laws are very restrictive. For instance, the Global Data Protection Regulation (GDPR) is thorough and strict, threatening fines of up to €10 million, or 2% of the company's worldwide annual revenue, for serious violations.

Workpay's Data Security and Protection

Workpay focuses on data security and privacy by employing robust security measures and encryption protocols.

The platform is a trusted partner of some of the fastest-growing companies in Africa, such as Flutterwave and CIS Kenya, proving its efficiency in maintaining data security and protection.

Compliance 

Most managers agree that financials are just the tip of the iceberg. The submerged challenge? Compliance. Maintaining compliance is a challenge many businesses face since the rules vary depending on the country. Worse, these rules are changing every few years.

Every country has requirements for compliantly compensating international employees. These rules spread to matters such as taxes, overtime pay, benefits, contributions towards healthcare and retirement, vacation and leave requirements, termination practices, and deadlines for payment.

Unfortunately, making mistakes is not inconvenient for the employee alone. Companies face the threat of legal action if they do not meet these legal requirements. In the long run, it could mean contract termination, fines, and the inability to hire from the country again.

Workpay's EOR Service

Workpay offers a simple way to acquire talent without the need to establish a local entity, with the benefit of compliance.

Workpay EOR ensures companies administer payments while complying with the county's tax regulations and employment laws.

In addition, the staff makes it a point to understand the compliance requirements of each country and keep up with any changes to employment laws.

Payroll Accuracy 

Payroll accuracy is an important part of the company's processes. Payroll mistakes can be costly in the long run.

Unfortunately, many businesses with employees in various countries struggle with maintaining payroll accuracy. It can be challenging to keep track of different employees' hours. In addition, the differences in contributions and taxes could harm accuracy among employees.

On top of that, HR may struggle with factors such as different currencies, time zones, foreign bank accounts, and language and cultural barriers.

Inaccurate payroll affects employee morale, disrupting productivity. It could lead to a poor reputation, higher operating costs trying to correct errors, and poor retention rates.

Workpay's Payroll Management

Manually managing payroll in an ever-changing business model makes things more challenging. That is why Workpay chose automated payroll management.

The fully integrated system ensures easy employee management with limited chances of double entries and other errors. In addition, the staff has local expertise to help navigate cultural and language barriers.

Employees receive accurate payments in their correct currencies after the right tax deductions. Best of all, the automatic process consistently rolls out payments on time.

Final Thoughts 

In today's globalized business landscape, harnessing talent from around the world offers undeniable advantages. But companies also encounter challenges unique to this evolving work environment. One of the most pressing issues affecting employers and employees is the complexity of global payroll management.

Workpay emerges as a beacon of solutions, addressing transparency, data security, compliance, and accuracy through its advanced platform.

By providing transparency, fortifying data security, simplifying compliance, and ensuring accurate payroll management, Workpay empowers businesses to navigate global payroll management challenges easily.

As the business landscape continues to evolve, Workpay stands as a testament to innovation that paves the way for efficient, secure, and compliant global payroll management. Contact us today to enjoy solutions for payroll, HR, and more.