Publication 4 pages

Does your tail wag your head: Coping with the complexities of multi-country payroll

29 September 2015

All the in-depth analysis and graphs and reports in the world cannot predict that one constant that remains elusive: the human element.

Any decision-making process must take into consideration both the relationship you will have with your provider, but also the element of human error. Asking questions about the supply chain can help to ensure you are fully aware of any potential risks involved.

In this paper we show why you should look after your “tail”, and gives some examples of how to do just that.

For example, in the aggregator model the risk of human error is exponential depending on how many different companies are in their network. Let’s say the lead company covers the UK, US, Argentina and Australia, and they outsource payroll for another 10 countries to a partner. But that partner doesn’t cover two of those countries themselves – for the sake of argument, we’ll say Ghana and Kazakhstan - so they outsource each to a local partner. That leaves a total of four companies running payroll under this agreement, and three levels of supply chain where the risk of human error becomes magnified. If there is an issue in Ghana, by the time that is communicated up the supply chain, all hell could have broken loose!

By contrast, if you’re working with a partner that has its own wholly-owned network of local offices, operating as one company and with clear communication lines, the risk of that Ghana issue blowing out of proportion is minimised. By speaking with their colleagues, the issue can be addressed – and hopefully before the end client’s employees even realise there’s been a risk to their payroll.

Did you know?

That when running payroll across multiple jurisdictions where staff numbers are small, the challenges can disproportionately increase.

Find out more here >

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