April 25, 2023
If you’re shopping for an international payroll provider, you’ll quickly findthere are a lot of choices out there. And everyone seems to be offeringsomething a little different. It’s easy to get mired down in the combinationsof tools, technologies and a la carte menu items—all claiming to help youefficiently pay your employees.
How do you create a shortlist of the best international payroll providers? Andhow do you figure out which will be the best provider for you?
The first step is understanding what kind of payroll provider you need. Thereare three primary types of international payroll providers, and the best onefor you will depend on your unique situation.
Let’s break down what we’re actually looking at with international payrollproviders. It’s easy to get lost in the acronyms, but it really boils down tothree main types:
Technology providers offer payroll platform technology or Human CapitalManagement (HCM) software that can manage payroll processing, tax filing,garnishments and end-of-year reporting in one convenient place.
Pros of payroll technology providers:
Cons of tech providers:
Global payroll service providers cater to businesses of all sizes, offeringfully managed or aggregated payroll processing services. The bestinternational payroll providers offer a range of payroll services, up to fullymanaged outsourcing. Some may even offer extended HR services, and many areable to integrate with your HCM or HRIS technology.
Pros of global payroll providers:
Cons of payroll providers:
Related: International payroll outsourcing: A guide for multinationals
HRO stands for human resources outsourcing, and HRO providers offer a range ofservices that can meet the evolving needs of middle- and large-marketenterprises. With these providers, payroll is a base service, and otherservices can be added a la carte to customize solutions.
Pros of HRO providers:
Cons of HRO providers:
While there are three primary types of global payroll providers, you aren’tlimited to a single choice.
Sometimes the best international payroll solution is a hybrid approach.
Many multinational companies choose to implement an HCM or HRIS, while alsopartnering with a global payroll services provider. These providers fill gapsin countries that many technologies do not cover. They also offer valuablelocal expertise that tech companies cannot, helping to ensure compliance.
In the hybrid approach to payroll, companies integrate their HCM/HRIS with aglobal payroll provider to take advantage of both technologicalfunctionalities, as well as breadth and depth of payroll expertise.
For example, let’s say you use (or are implementing) an HCM, but it onlysupports payroll in a handful of countries. But you have to pay workers in 10countries. You can choose a global managed payroll services provider to integrate withyour HCM and process payroll in all 10 countries. Now, you can access and useall of your payroll data across all 10 countries right in one cohesiveplatform.
Related: How to streamline HRIS integration with global payroll for greaterROI
Getting set up with a payroll provider is going to be a big undertaking,regardless of which avenue you take. You don’t want to find yourselfevaluating options again anytime soon. A new global payroll implementation is a big project to tackle. To find the best internationalpayroll provider for your business now, make sure this partner can scale withyou in the future.
Related: What to consider when outsourcing payroll: 8 vital factors
If you’re having a difficult time comparing apples to oranges, we get it.There are many different iterations of payroll providers, and the options canbe as diverse as the countries they operate in. It makes it challenging tochoose the right service from the get-go.
You need more than simply competent service—you need great service that fitsyour company’s current needs and can help you reach your long-term goals. Thebest international payroll provider for your business is the option that meetsthose needs, while also ensuring accuracy, timeliness and compliance.
If you still need help evaluating your options, we’ve got you covered—speak to one of our global payroll experts today.