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Report reveals the key drivers of payroll transformation


Managing multi-country payroll can be complex and high-risk. Addressing the business implications, risks of large-scale payroll processing and cost controls are primary drivers for payroll transformation.

According to the Alight Global Payroll Transformation Impact study, 45% of international payroll leaders say there is investment planned for their multi-country payroll operating model. Priorities in the next 12 to 24 months include process optimization, redesign, automation and vendor consolidation.

Respondents to the study see moving to a single, multi-country Cloud payroll platform as the best way to realize the untapped value of payroll. As a result companies are in a better competitive position with:

  • accurate and informed decision-making
  • cost optimization
  • improved risk management

Key drivers for global payroll transformation in large companies:

  1. Compliance: Enterprise-sized organizations are subject to a wide range of country, state and city laws and regulations regarding payroll, such as minimum wage laws, overtime rules and tax withholding requirements. Keeping up with these laws and ensuring compliance can be a significant burden for larger organizations.
  2. Scale: With a large number of employees, enterprise-sized organizations often have to manage a vast amount of payroll data, including employee information, deductions, and taxes. This can make it difficult to ensure accuracy and timely processing of payroll.
  3. Costs: Payroll is a significant expense for any organization, but the costs can be even greater for large organizations due to the scale and complexity of the payroll process. These organizations may need to invest in specialized software and hire additional staff to manage payroll effectively.
  4. Cybersecurity: Large companies often have a massive amount of sensitive personal and financial information on their payroll systems, making them a target for cyber-attacks. Ensuring the security of this information is crucial to protect both the organization and its employees from potential breaches.
  5. Employee turnover: High employee turnover can make it difficult for bigger organizations to keep accurate and up-to-date payroll records. When employees leave the organization, their information needs to be removed from the payroll system, and new employees need to be added. This can be time-consuming and increase the chances of errors.