The 2019 Global Payroll Complexity Index has found that India, Australia and the UK are leading adopters of robotics and analytics in payroll.
The research, published by NGA Human Resources, contains feedback from nearly 2,500 payroll professionals from around the world and ranks the top 40 countries in order of payroll complexity.
The findings revealed heightened anxiety around data ownership, with respondents from all countries highlighting ‘the protection of personal identifiable data in the payroll process’ as a major challenge. However, the introduction of General Data Protection Regulations has prompted a global review of national and local data legislation.
“The results of the Global Payroll Complexity Index confirm that in 2019, multinational organisations continue to be challenged by managing growing volumes of employee data, adhering to data privacy regulations, and staying compliant in a world of unique employment and taxation compliance regulations across the globe,” explained Mary Holland, Global Director of Strategy, Development and Training at the Global Payroll Management Institute and the American Payroll Association.
“Positively, the responses show that complexity can be managed by the standardisation of processes, having the best global talent, selecting the right service delivery model and using technology to enable and manage payroll operations.”
The Index found that unstructured payroll legislation and tax changes, and the influence of collective agreements, meant Europe continue to lead the table for complexity. The fastest rise in complexity is reported by payroll teams in countries in the growing international business economies of Eastern Europe, South America and Africa.
“As globalisation continues, we will see the increased use of robotics, expanded reporting, artificial intelligence, managing risk exposure, increased government audits, and standardised processes,” continued Holland.
Other key findings included: the rise in ‘micro-legislation’ – city, as well as regional and national rules; mergers and acquisitions and organisational change are accelerating payroll upgrade projects; the fight for top talent is forcing employers to move to flexible, reward-led salaries; demand for single-source payroll data as value in wider business planning reported; and a rise in retro-calculations – 10 per cent of companies in US, Asia and Eastern Europe now run weekly or daily payrolls.
