global payroll - Ceridian

December 2016

GLOBAL PAYROLL The official magazine of the Global Payroll Management Institute

Top Weapon in the Compliance Matrix

Expand Systems to Keep Up With APAC Growth

Executive Spotlight on Ceridian VP

JAYSON SABA

GPMInstitute.com 1

In the Compliance Matrix,

Data Management Is Our Weapon BY JAYSON SABA

Reprinted From

December 2016


C

ompliance is defined by Merriam-Webster as “the act or process of doing what you have been asked or ordered to do.” Unfortunately for HR and payroll professionals, that’s … well … a lot. And when operating across national and continental boundaries, navigating the maze becomes a monumental and stressful task. Generally speaking, what we are “asked or ordered to do” can be broken into three categories: 1. Company Policy—Complying with policies and processes that are unique to a company and are there to help us do business in a certain way. It could relate to industry standards or drive things like efficiency, environmental and social responsibility, and cost savings. 2. Negotiated Agreements—Complying with collective bargaining agreements, supplier contracts, client contracts, or social/community contracts. These are negotiated rules but legally binding. 3. Laws and Regulations—Complying with government (local, state, provincial, federal/national) rules and regulations that were enacted through legislation. The most obvious examples are labor laws, tax laws, privacy laws, and accounting rules. These three categories are underlined by two variables. One, they’re not the same in each country. Two, they’ll never be constant. For example, in the United States, under the Internal Revenue Code, employer penalties for failure to deposit, payroll taxes range from 2%-15% of the amount due depending on how and how late deposits are made. Wage and hour settlements can be even more expensive. Research published by NERA Economic Consulting “identified total wage and hour settlement payments of $445 million in 2013, $400 million in 2014, and $39 million through the first three months of 2015, bringing the aggregate amount paid for cases settled since January 2007 to over $3.6 billion. In total, our database contains 613 settlements from January 2007 through March 2015, for an average rate of approximately 75 settlements per year.” These settlements resulted from lawsuits bought by current and/or former employees alleging unpaid work (such as overtime), failure to provide meal and/or rest breaks, and work done off the clock. This is just one category from one country. For global organizations, these Jayson Saba is Vice President, Market Research and Industry Relations at Ceridian HCM. In addition to leading market research and industry analyst relations, he supports Ceridian’s global marketing strategy.

challenges are further magnified when doing business in multiple countries. Ceridian’s CEO Aaron Hurst laid out a great roadmap in his article 3 Keys to Maintaining Compliance With a Global Workforce that should be considered when rolling out a compliant global workforce management strategy. (Hurst was also featured in the April 2016 Global Payroll issue speaking about the different emerging trends.) The three keys are 1) effective data management, 2) employee- and manager-friendly self-service, and, 3) a strong partner (solution provider). In this article, we will focus on the first piece— managing global data—and understanding each category.

Data Inventory The different elements of HR and payroll data fall into four categories: 1. General employee data—Information such as age, address, employee ID, pay grade, compensation history, tax status, benefits elections, reporting structure, and certifications is recorded. Think of it as the employee file, which tends to be more static. 2. Workforce management data—More applicable for the hourly employee (including consultants where time is billed as revenue) and contains time worked, hourly rate, shift data (e.g., holiday hours), earned time, schedule preferences, and absences. This data continuously changes and is updated in real time daily or weekly. 3. Documents—Include files and attachments of things such as written warnings, scan of licenses, work contracts, non-compete and non-disclosure agreements. 4. Extraordinary or elective elements—These include off-cycle bonuses, commissions (for sales), stock options and vesting schedules, housing, car, and other allowances. Typically, rules govern the storage of each of these types of data. These could differ based on country. Permission to access this data also differs based on individual roles. But some data is integral to running the business and impacts agility and decision-making. When it comes to global workforce management, the three most critical questions to answer are: 1. Is our workforce data stored compliantly? 2. Is it accurate and dependable? 3. Are we providing data to the right people when they need it?

Data Compliance After completing an inventory of the different categories, it is important to ensure that the rules governing storage are understood. Questions include:

1. What kind of data is acceptable to maintain? 2. How long do I need to keep data? 3. Is the data secure? In a spreadsheet-driven environment and with a dispersed workforce, this is a major challenge. Increasingly, we see global organizations seeking solutions from partners who truly understand the local rules and regulations of each country and can provide a solution that accommodates them. There are important questions to consider, especially when it comes to security. Does the system automatically purge data after the company’s time to store it expires? Are the permissions easily configurable based on role and responsibility? When changing the data, is there a documented audit trail that shows who did what? The answers to these questions changed based on the rules and regulations in the corresponding country.

Accuracy and Dependability Data drives the business, and managers are held accountable for results. Enabled by advances in technology, a trend is developing as to how companies view time and pay processes. A few years ago, it was difficult to imagine a holistic and accurate view of workforce data across different countries. Time and attendance solutions didn’t have real-time integration into payroll systems. The result was often old or stale data when it came to labor cost reporting. That hinders a manager’s ability to stay within labor budget plans. In addition, these systems might have been so customized in the way they were built that it was extremely cumbersome and expensive to create or expand reports to different parts of the workforce or the world. Along with the aforementioned compliance risk, trust in workforce data—especially global—is the biggest challenge facing organizations today when it comes to data management.

Access to the Right Data Along with accuracy, timeliness is necessary to ensure that managers are using the data for business impact. In most companies, labor costs are the largest expense item. Ensuring that managers have access to the data is key. Unfortunately, spreadsheets remain the most widely popular reporting tool for these managers. In addition to limits around the type of data, spreadsheets can cause staleness in the type of reporting. Most of us have been on the receiving end of a weekly or monthly spreadsheet report. Assuming the data is accurate and trustworthy, how often have we been able to add different

components to it? Usually, only one person actually builds these reports and provides only so many formulas, pivot tables, and macros. That makes it virtually impossible to dig deeper, wider, or gain insight that helps us proactively anticipate issues (such as budget overages) before they happen.

Solving the Matrix An effective data management strategy starts with an understanding of the type of data needed and how it should be treated. It all starts with an honest evaluation of where the data lives and who needs it. This means involving cross-functional stakeholders from finance, operations, and strategy. It’s hard to imagine an approach without taking advantage of a strong technology platform and an expert partnership. In seeking a partner, local expertise directly or through a broader global partner is critical. Because payroll is often the trusted source of truth in reporting to local legal and tax authorities, a local partner can help define the type of data needed and the rules surrounding its storage and dissemination. Increasingly, companies are looking for a comprehensive strategy to address HR, workforce management, and pay processes in one technology solution. Cloud technology now affords companies new capabilities that legacy solutions didn’t. A comprehensive strategy is best enabled by a single application and one database. Breaking the silos between the different data categories will simplify access and reporting. It also enables companies to configure and manipulate data while maintaining a wider view of the global workforce and maintaining an audit trail of changes and updates. By housing information in a system that is constantly and continuously monitored by a cloud provider using the latest security tools and mechanisms allows HR and payroll professionals to focus less on the tactical aspects and logistics of maintaining compliance and more on how to start using the data to be better strategic business partners. Lastly, scalability of cloud technology allows companies to easily add employees as they grow organically or through mergers and acquisitions with little to no incremental investment in IT and HR/payroll headcount. A successful global workforce data management strategy should be developed for compliance, trust, and business agility. Understanding the type of data we need and having a broad, comprehensive strategy to store and disseminate it is best accomplished by seeking a global partner with local expertise and a technology built for the future. ■

The Global Payroll Management Institute (GPMI), www.GPMInstitute.com, is the world’s leading community of payroll leaders, managers, practitioners, researchers, and technology experts. Subscribers connect with each other through networking discussions, collaborative opportunities, and access to education and publications dedicated to global payroll strategies, knowledge, research, employment, and training. GPMI also publishes several global payroll texts and white papers as a benefit to subscribers. Get more information at www.GPMInstitute.com.

Reprinted From

December 2016


Meet Jayson Saba, VP Market Research and Industry Relations, Ceridian BY FRANK J. MENDELSON

Editor’s Note: Jayson Saba is the Vice President of Market Research and Industry Relations at Ceridian. In addition to leading market research and industry analyst relations, he supports Ceridian’s global marketing strategy. Prior to joining Ceridian, Saba was the lead analyst covering core HR, workforce management (WFM), and outsourcing at the human capital management practice of Bostonbased Aberdeen Group. He speaks at HR industry events, writes blogs, and contributes to HR and industry-leading publications. His blogs have been featured on TLNT, ERE, Wired, the Huffington Post, and others. How is the changing role of the global payroll professional—typified by greater interaction with the human resources department, data analysis, and strategic planning—making an impact in the field? We are seeing a shift in the role of the global payroll professional where historically the focus was on maintaining compliance and paying employees accurately. We now see a huge focus on leveraging payroll data to drive business decisions. The challenge is being able to trust the data. Is it correct and is it current? For large global organizations, the answer is seldom “yes” to either of those questions. What are the emerging trends or issues that have your attention in global payroll? The ongoing business issue will be compliance—more specifically country-specific compliance with regard to labor rules, regulations, taxation, and money movement. The emerging trend is the need to consolidate payroll data into a single view. With that comes the expectation of having a strong payroll platform—not just service, but a technology that aggregates data and provides accurate visibility into global payroll processes and costs. Frank J. Mendelson is an Acquisitions Editor for the Global Payroll Management Institute. He has been working with the American Payroll Association since 2009 as an editor for PAYTECH magazine, and has presented workshops at the Annual Congress on effective communication.

Jayson Saba Vice President of Market Research and Industry Relations Ceridian Is there a frequently asked question you think will no longer be part of the conversation in global payroll? “Is cloud the right model for deploying global payroll?” We get asked this question occasionally, but in my former life, writing about payroll and advising payroll executives, that was the question of the day. Cloud has proven to be safe, flexible, and easy to deploy. What resources do you use to stay current on the latest trends and legislation in global payroll? As the leader of Ceridian’s Industry Analyst Relations team, I constantly read the latest research about best practices and try to learn from third-party experts. I’ve found www.GPMInstitute.com and its corresponding LinkedIn group to be invaluable resources. In addition, we subscribe to local publications for certain countries. We’re constantly sharing knowledge with our local partners. Moreover, we have the best customer community in the world, and we get feedback from our

customer advisory boards. Ceridian provides a knowledgesharing hub that gives us an opportunity to discuss with our customers pending or potential legislation. How can a global payroll department integrate on a strategic level with corporate finance, human resources, and other departments to provide a competitive advantage? I have always said, “When in doubt, trust your payroll data.” I believe the global payroll department holds the key to a trove of data that enables better decisionmaking. In addition to people costs, global payroll data provides visibility into turnover, retention, average days a position has been open, absenteeism, tardiness, overtime costs, and much more. Finance will have visibility into labor costs across countries, which locations are staying to their budget plans, which positions are going over, and what these leaders can learn from each other. Global payroll data can tell HR when someone joins the company, when that person leaves, how long a position was vacant before it was filled, which leaders have a turnover problem, and which leaders are doing a good job promoting their people, etc. All of this insight leads to being a true partner to global business leaders.

substantial volatility to exchange rates, which are critical for proper reporting, but it will have an impact on how U.K.-based companies pay their employees in the rest of Europe. Rules impacting money movement may be impacted. As companies start navigating this, there could be a ripple effect. This is why it is very important to choose a partner who gets compliance at the country level. Is it possible to have a single global payroll solution and service? Yes. I believe that with the right partner, a company can have a single global payroll provider. While there might be countries that need to be addressed by local in-country service providers, the right partner can ensure these providers are on-boarded and trained properly. The main objective is to have a single view of the data, and this can be done with the right platform.

The emerging trend is the need to consolidate payroll data into a single view.

How would you advise someone whose company is just beginning to expand to a global payroll with regard to risk management and compliance? We are very consultative and focused on customer success. It’s important to understand what our clients are trying to accomplish. The strength of the solution is equal to the expertise of the vendor. While it is important to ensure the technology is easy to use and provides the necessary data, it is also critical to choose a partner that understands compliance, money movement, and labor laws—a thought leader. What is the one thing that happened in the past year that you didn’t see coming but has had a most profound impact on global payroll? The hot news this past summer was the Brexit—the U.K. leaving the European Union. Not only does it add

What are the biggest challenges for global payroll teams? Historically, payroll has been viewed as a commodity. “Pay my people accurately, and keep me compliant.” However, today’s reality demands a strategic focus, specifically, on visibility. Beyond compliance and risk, the biggest challenge is to convince senior leaders to start thinking beyond just cost. Building a strong business case based on the return on investment and not just the cost of ownership is crucial to being able to transform the status quo. Partnering with business leaders across departments is critical, and quantifying the impact of having quality data on the business is key. How is technology helping global payroll become more strategic? It comes down to two things: One, an intuitive and easyto-use platform for employees and administrators; and two, a single view into global payroll data. The user experience will relieve global payroll practitioners from administrative tasks—all the way from simple changeof-address requests to complex spreadsheets and pivot tables. This will free us up to use the valuable data we capture to be better partners to decision-makers across the organization.

With technology and data-driven HR decision-making emerging, how do you see the role of the global payroll professional evolving? The global payroll professional will have to be aware of and ready to react to the latest industry trends, such as how to manage data, the benefit of consolidating the global data of human capital management (HCM) suppliers, and how to set up your service model for success. Additionally, when compiling a list of potential global payroll vendors, global payroll professionals will need to keep a number of factors in mind. First, make sure the technology aligns with your company’s compliance and ties the overall technology, data, and service model strategy together. Secondly, look at all aspects and offerings of each vendor and technology to determine if a single global provider will be best to meet company needs.

more interested in a team than a specific title or role.” And I agree. Hire for fit and train for skills. Would you want to work with someone whom you can’t sit next to on a five-hour flight? I want to work with people who prioritize making the team better. When you attended college, did you have an idea what you wanted to do with your career? I really didn’t have a clue, which is why I majored in business administration, to provide me with the most options after graduation. After a couple of years running a small, familyowned business, I realized I liked numbers and people. So I decided to go back to graduate school to get a master’s degree focused on HR management, hoping to get a career in HR or payroll. I ended up in a practitioner role as an entrylevel HR/payroll coordinator for a mid-sized global organization with offices in North America, Europe, and APAC. This was my first involvement in global payroll. Afterward, I worked as a project analyst for a large financial services company supporting employer services and individual retirement businesses. Later, I was an analyst at a research firm leading the payroll and core HR practice before coming to Ceridian.

I believe the global payroll department holds the key to a trove of data that enables better decision-making.

What are the most important qualities of a leader? I believe a leader is someone who helps people on his team and those around him unlock and achieve their full potential. I really try to be a “servant” leader, one who strives to ensure that others thrive. I am a servant first, leader second. Serving to me means treating people with respect, listening, mentoring, and celebrating/promoting individual and team successes. I also believe in collaboration by involving team members, getting their input into priorities and direction, and asking them to balance team priorities with their own personal and professional development. What are key qualities you look for in the people you hire? Our CEO, David Ossip, is a believer in, and an advocate for, hiring for “FIT.” It is critical that we find people who believe in what Ceridian is attempting to do, who like to have Fun, are Intelligent and will work well with others in Teams—we call it FIT. In a recent interview, David said, “When it comes to intelligence, we test not if the person knows everything at the time of the hire, but whether or not the person has the ability and aptitude to learn. We also want people who are

What books are on your reading list? Over the summer, I read No Hero: The Evolution of a Navy SEAL, which talks about what goes into becoming a Navy SEAL. It really changed my perception. I had originally thought SEAL training is just about how strong, tenacious, and smart an individual is, but so much of it is teamwork. I was fortunate enough to hear the author speak at a Ceridian event. It was fascinating to hear about the transparency in communication, breaking down projects to smaller milestones, and holding people accountable without judgment. I recently picked up Stephen Denning’s The Leader’s Guide to Storytelling, which talks about how leaders can use stories to engender change within their teams and companies. ■

The Global Payroll Management Institute (GPMI), www.GPMInstitute.com, is the world’s leading community of payroll leaders, managers, practitioners, researchers, and technology experts. Subscribers connect with each other through networking discussions, collaborative opportunities, and access to education and publications dedicated to global payroll strategies, knowledge, research, employment, and training. GPMI also publishes several global payroll texts and white papers as a benefit to subscribers. Get more information at www.GPMInstitute.com.