Going Global

1. Going Global 0

2. Presenter • Mary Brumm, CPP Global Payroll Consultant and Educator Member of the National Speakers Bureau mary_brumm@yahoo.com

3. Critical Success Factors:Strategy & Governance Importance of Data Collection What Role Does Culture Play? Payroll Delivery Model Global Compliance & Data Security Questions Agenda

4. Global Payroll Strategy What is your direction? What is your current situation? What is your vision, mission, timeline, and scope?

5. Factors That May Affect Your Strategy • Number of counties • Number of employees at each location • Expatriates • New acquisition or hybrid activity • Where is the payroll done? • Local, regional, or centralized • Speed of development • Company growth

6. Daily Challenges Global Payroll Overview • Strategy / Plan • Vision • Roadmap • Operating Model • Outsourcing / payroll delivery • Decision makers • Sponsors Strategic Plan Increased visibility Virtual employees Time zones Language barriers Communications Compliance and taxation requirements Infrastructure Interfaces

7. How will work and information flow? Are there effective quality controls in place? Is decision-making distributed appropriately? Sourcing embodies the concept of process or activity ownership within an organization, externally by a third party or a combination thereof. Operating Model Sourcing What activities will we do ourselves/ have others do? Which technologies are appropriate for delivering needed services? How can we optimize technology? All four components of the infrastructure must be fully integrated to ensure services are provided in the most seamless, efficient and cost effective manner. Infrastructure What capabilities are needed to fulfill our strategy? Have we organized the work to enable strategic services and superior administration? Process Technology Talent Organization Governance is the act of leading the function and managing risk to the organization. Governance How will we lead the function and manage related investments? Do we have the right skill sets, competencies, resource levels and deployment of staff? The Organizational Model Impacts Operating Components

8. When You’re Thinking About Deployment • What do you need to consider when implementing a global capability? • What level of transformation is desired? • Is the driver for change coming from HR or Payroll, or is it a business mandate? • How important is cost reduction? • What is the organizational culture, and does it align with an outsourcing approach? • And how do you bring these considerations together?

9. Global Strategy Considerations Do you have one global system of record for master data? What talent resources and local experts do you have? Do you have a clear roadmap? Who is pushing for a global model?

10. Establish a Steering Committee Identify key decision makers HR, Finance, Legal, IT, Corporate Tax Meeting frequency and communications to the teams

11. Global Compliance Relationships

12. Payroll Setup

13. Benefits of a Global Payroll Strategy • Clear vision and goals • Proactive working environment with clear expectations • Measure performance while making the appropriate changes when required • Increased operational efficiencies

14. Benefits (continued) • Effective in one-person payroll department or with multiple team members to set direction and goals/objectives • Platform to develop consensus among team members, clarity of direction, and understanding of one’s self in the process

15. Governance Who are your supporters? Stakeholder Analysis Steering Committee Project Team Decision Makers Vision, Mission, Timeline

16. Governance Model Compliance Entity Registrations • Clear global process owner • Importance of senior support • Risk mitigation • Problem resolution and escalation path • Clear communication • Change management • Executive support • Need • Complexity • Requirements

17. Data Collection What? Why? From Whom? Where? Process Documentation Maps Determine Current Processes, Services, & Costs

18. Compliance • Baseline • Structure • Data tells your story and helps you determine what direction to take • Build a template as a guide for sharing information Importance of Data

19. What Data Should You Collect?Payroll Service Data • Costs — systems, vendors, time system, HRIS, resources, ID cost per pay slip and per employee • Fiscal year • Currency • Pay frequency • Employee counts per location • Work councils • Collective bargaining agreements • Language requirements • Service providers • Expats/Inpats • Global mobility services • Banking & funding information • Payroll calendar — identify deadlines & holidays • Required reporting, monthly, quarterly, and annual forms • Wage type elements — taxable/non-taxable • Payroll deductions • Work/pay rules • Time-off requirements • Taxes — EE/ER • Record management and retention rules • Data privacy • Pension plans • Review and talk though processes • Customized forms • Banking and funding information • Interface requirements

20. Global Comparison

21. Culture & Communication • Important to understand company and country culture • Awareness of culture is becoming more and more important • Acknowledge cultural differences, appreciate them and work to accommodate in a fair manner

22. Culture & Communication Language Requirement for Local Language Support Holidays — Chinese New Year, etc. English Cultural Traditions Dress Etiquette

23. Culture & Communication Building Trust Business Cards Site Visits Gender Research the Culture Before Traveling

24. Payroll Service Model How are you going to deliver payroll? Regionally, centralized, or local? In-house vs. outsource? Who is responsible for what? Service level agreements

25. Local Payroll Processing

26. Global Payroll

27. Global Compliance: 3 Major Concerns 1 Data Privacy 2 Discrimination 3 Affirmative Action

28. Data Privacy Around the World Level of Regulation European Union (EU) European Economic Area (EEA) Other countries (USA…) Countries with some regulation (Australia, Korea, Canada…) 80+ countries have adopted comprehensive laws regarding information privacy The most restricted area is Europe Some countries inside EU even more restrictive

29. Data Privacy Around the World • Common data protection rules: • Right to ACCESS • Right to CORRECTION • Right to OBJECT or CONSENT • Certain data can’t be recorded or stored in certain countries • Best practices for a multinational organization with employees in Europe

30. Discrimination • Age discrimination is a growing challenge with forced retirement in some countries • Gender in many countries in Europe and Canada Never export EEO strategy outside U.S. (except for expats) Define a global discrimination policy

31. Affirmative Action Affirmative Action is only applicable in some countries, and varies in each country • Limited actions in countries like India, Brazil, Germany • Could be based on other criteria, such as gender • Need a local consideration because of the differences Examples: • Brazil • Costa Rica Guatemala • Germany

32. APA Resources • APA GPMI

33. Resources • Currency convertor www.oanda.com/currency/converter/ • Public Holidays www.bank-holidays.com/ • HM Revenue and Customs www.hmrc.gov.uk/employers/index.shtml • Immigration Services www.fragomen.com/ • Ernst & Young Global Limited www.ey.com/ • Global Mobility Tax, LLP www.glomotax.com/

34. Questions

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