Payroll teams are usually overwhelmed by global payroll due to keeping up with local regulations, lack of reporting, and no control over the monthly process. In order to manage payroll effectively in any country, access to information is the key to success. If you don’t have the tools and reporting to view payroll in real-time, things can quickly get out of control.
Just like in the US, each country has unique payroll laws that affect the way you pay employees each year. Your team managing global payroll has to be aware of any changes, ensure compliance with new regulations, and maintain on-time accurate payroll for your global employees. So how can you simplify this process across multiple countries and ensure you are compliant?
The quick answer to simplifying payroll is to use technology, but what does that really mean for your global team? In reality, there are many technology solutions that offer to manage payroll in other countries. But what you really need is a single platform that integrates with your systems, is GDPR-compliant, and helps you manage evolving regulations in each country every year.
Using spreadsheets, manual processes, and email to manage global payroll is not only time-consuming, it is not in compliance with regulations in many countries. Your employee personal data is at risk and your company can face fines and penalties for data privacy compliance. Blue Marble has helped companies redefine and simplify global payroll with a cloud-based solution that manages payroll in 145+ countries, ensures compliance with in-country regulations, and provides customized reporting so you have access to your payroll data in real-time.
With the impending changes to the UK labor market due to Brexit, there are a variety of ways that HR departments will need to prepare themselves. The first and most prominent issue will be the potential loss of many low-skilled migrant workers. Many jobs that require fewer skills and get paid less are not seen as an attractive option for native-born British workers.
This is especially true when years of habits have set in and people perceive stigmas associated with jobs requiring fewer skills. It is also safe to assume that many people who have been born and raised in the UK would not be pleased with the pay rates for these kind of jobs, whereas workers originally from less developed economies may be happy with even a low paying job, if it provides them with an opportunity to relocate to the UK. The UK will need to develop a new system for bringing in foreign workers for these lower skilled jobs to ensure their organizations can afford the necessary labor and still have the same pre-Brexit production levels. With other EU countries still operating on an open-border basis, it will be interesting to see how this constraint affects the number of migrant workers still interested in working in Britain, despite the fact that their marketability would now be restricted to just one country.
Additionally, we are also going to see the war for skilled talent grow given fewer workers will be available for higher skilled jobs. HR departments are going to need to create new training programs to raise the skill levels of their current employees at a faster rate than previously seen. If jobs with higher skill levels become available in an organization, the only options are to either promote from within or recruit a new employee from outside of the organization. However, if there are no individuals ready to promote, and now there are also even fewer external recruits available, employees are going to need to train a current employee rapidly to ensure that productivity doesn’t dramatically change. With free movement of employees across the EU no longer available post-Brexit, the UK is going to see a dramatic decrease in job applications from EU countries that will probably be more similar in magnitude to applications seen from non-EU countries.
HR teams will undoubtedly be busy in the coming years, performing organizational audits to try to predict whether their post-Brexit workforce will be able to support their organizations. If they find that their organization will be deficient, they will have to join the frantic race for talent, along with all their competitors, to find new employees.
Regardless of Brexit, the European Convention of Human Rights (ECHR) will still govern the UK and the EU and we will not see many changes to the terms of basic employment and human rights at this time. This also ensures that all policies already in place that don’t affect EU employees will still remain in place. However, for the next few years, as no one really knows what all the prospective changes will bring, HR Directors and Managers will need to pay special attention to labor laws and employee rights to ensure they are consistently kept up to date and informing their organizations immediately of any changes that will affect them or their employees.
One way that many HR teams are already planning on counteracting and preparing for any drastic changes within their organizations is by prepping a variety of scenarios. It may prove useful for HR team members in the UK to have multiple brainstorming sessions where they can prepare for a variety of different possible and probable situations. By constantly asking “what if”, teams can start to strengthen their critical thinking skills and prepare for the worst-case scenarios. It is also important at this stage to have a clear understanding of who your EU and UK employees are, and how long they have been living and working in the UK.
Overall, the UK as a whole, and the Human Resources teams of its many organizations, are more than capable of handling these proposed organizational changes. There will be a natural period of transition for organizations that currently have EU employees that will require some risk mitigation and critical thinking. Whether this transition period will be completed by 2021 as proposed, or take 5-10 years is a question that will only be answered with time.
Generally, it will be important for HR Directors to pay attention to all of the changes with the UK labor laws and immigration process, but as long as the organizations are prepared for increased training and decreased prospective employee applicant pools, the organizations should be able to come through this process fairly unscathed.
Companies are packing up and getting ready for trade shows around the country (or just getting back from APA and SHRM19!). While most attendees schedule learning sessions and have responsibilities to manage the company booth, there are other important takeaways from a trade show. So what is the best strategy to maximize your time at a trade show and not walk away exhausted and unsure of what you accomplished?
Plan Your Time:
Before you go to the show, make a list of your goals – do you want to meet clients, generate leads for your business, learn about something new in the industry, or all of the above? Making a schedule for each day can help you do a little of everything without trying to over pack each day.
Meet with Partners:
Are your potential partners going to the show? Make a list of the most important strategic partners you would like to meet and try to schedule time in advance to have coffee, lunch, or dinner after the exhibit hours are completed. If you have materials you would like to distribute to potential partners, make sure they can travel easily to not burden a partner with a stack of paperwork.
Learn and Have Fun:
Trade shows have so much to offer – classes with amazing speakers, lunch and learns, and entertainment. Make sure to plan for some fun while you’re at a show – invite a client or partner to an event, schedule a fun activity at your trade show booth, and get to know the people exhibiting around you. Even if it’s a competitor, there is always something to learn from a new acquaintance.
Trade shows are a great way to network, meet new friends, and provide opportunities for partnerships. Planning ahead and setting goals can help you accomplish a lot in just 3 days! To learn more about Blue Marble and our Trade Shows for the year, click here
Companies with international employees are challenged with managing unique payroll requirements in each country. The laws and taxes change each year, deadlines are different in every region, and penalties for non-compliance can be daunting. Many companies start with a managed payroll approach, but find costly fees and limited visibility across all countries. Other companies try the decentralized approach, using a different vendor in each country, but discover very quickly that local providers can have limited reporting capabilities and there can be language barriers as well. So how can you get control of global payroll and simplify at the same time?
We can use the US as an example. If you have employees in 20 states and use different payroll processors in each state, you will need to manage 20 different providers, 20 different methods of reporting, and will not have real-time access to your payroll data. Imagine that is now 20 different countries, with different languages, functionality, and regulations or tax laws that change every year – how do you stay on track and manage expenses, errors, or budgets? This decentralized approach in global payroll often leads to incorrect payroll calculations, lack of reporting, and no access to budgets or data in real-time. There are many benefits to simplify the global payroll process, access all of your employee payroll in one system, and have consolidated reporting each month across all countries and currencies.
Once a company has given up trying to manage multiple vendors across multiple countries, this is the point when some decide to hire an outside team to handle all the details and “take care” of the global payroll. It sounds better than trying to manage payroll in 20 countries on your own, but what often happens is that you lose the ability to track when an error is made, or you identify a compliance issue but can’t figure out where or when it happened. Other issues related to managed payroll are communicating with in-country providers. If you have a question about a compliance issue in China, you have to wait for your managed payroll company to ask the provider in China before getting back to you. This can cause serious delays for a simple question.
So how can you take your global payroll to the “Next Level”?
There is an easy way to consolidate all your countries into one interface, have direct access to your data, and be able to communicate directly with in-country providers when questions come up. Sounds too good to be true? This is the next level of global payroll – easy-to-use technology, aggregated reporting across all countries and currencies, and a hybrid service model with US and in-country support. Companies competing in the global space need flexible and customized options to manage global payroll, maintain compliance, and ensure their employees are paid accurately and in accordance with local in-country regulations.
To learn more about how to simplify your global payroll and take it to the next level, click here. Our team has helped companies navigate complex global issues, manage and maintain accurate payroll and compliance, and much more!
Your company has decided to expand overseas – so exciting! But now you are tasked with managing global human resources – hiring and on-boarding new employees, managing payroll and benefits, and ensuring compliance with all local, in-country employment laws. Global HR is challenging for US-based teams to manage because you don’t know what you don’t know – understanding unique regulations in each country is the key to successful HR practices overseas.
Figuring out employment laws and ensuring your hiring practices, employment contracts, and benefits meet statutory requirements is the first step. But managing HR compliance in each country is more than just initial paperwork. Your HR team must stay ahead of new employment regulations, changes to benefits, taxes, or payroll that affects employees in each country, and be aware of policies that could interfere with in-country requirements.
Global HR teams quickly become overwhelmed by the amount of changes that take place around the globe each year related to employment laws – there can be thousands each year! Simplifying global compliance is the best way to manage employees overseas, ensure you are following best-practices and reducing your risk of non-compliance.
Global HR compliance can be simplified by using customized technology for the countries you operate in. You can research labor laws, customize employee agreements and handbooks, and get access to a database of in-country resources for your employees in specific countries. Don’t let global HR compliance stand in your way – Blue Marble and Global People Strategist help companies simplify global payroll and compliance so you can focus on growing your business overseas. Click here to learn more
Following the referendum held in the United Kingdom (UK) in 2016, it was determined, by majority vote, that the UK would no longer be a part of the European Union (EU). Now the two-year ratification process is coming to a close and major changes will be taking place shortly, unless another extension for the process is granted. It is hoped that the full transition period will be complete by the year 2021.
The United Kingdom has been a part of the EU since 1973 (then called the European Communities). After being a part of the EU for approximately 43 years, it is unavoidable to expect some major changes to the rules of employment for people who are from the UK in comparison to those that have transferred from other EU countries.
The estimated impact of Brexit is evaluated at over 200,000 lost jobs by the time the country has fully split from the EU. These jobs are anticipated to represent a total of £6 billion in annual lost wages. It is certain that any major change like Brexit would be devastating to a variety of markets. However, we won’t know the full extent of the damage and impact until all of the new legislation is in place for a period of time.
Human resources will be kept very busy over the next few years as new legislation comes out regarding the status of EU Nationals who are currently working in the UK. In 2017, there were approximately 1 million EU nationals who were working in lower skill set areas in the UK, accounting for a huge proportion of those in hospitality, construction and food processing. As with any employee departure, finding, training and on-boarding new employees costs a lot of money and is also a large time investment for any organization. With the working status of 1 million workers up in the air, it is imperative that organizations potentially affected by the proposed changes are ready to implement rapid job replacement measures.
As the transition period ends, it is expected that the UK will adopt new worker immigration policies more like those of other countries when it comes to hiring foreign workers. There are currently qualification rules for skilled workers from non-EU countries and these rules are likely to be applicable to EU countries once Brexit is complete. Additionally, there will be more regulations created for those who have been living and working in the UK for at least 5 years (regardless of skill level) and who now have an existing right to remain in the country.
The UK’s overall working population may decrease because so many jobs are slated to be reduced or have already been eliminated. Additionally, with the implementation of Brexit, the UK will lose its current ability to easily hire anyone from the EU.
It is expected that with the proposed changes, Brexit will have a larger likelihood of affecting HR administrators more than the actual employees of these organizations. With many of the potential changes, HR departments will be required to revamp and update their hiring practices, training tools, and will also be responsible for seamless updates to their organizations throughout this changing and uncertain period. With fewer workers available, and more low-skilled jobs opening up, how are human resources teams preparing for the upcoming changes in the UK employment market?
In an upcoming article, we will examine some of the above ideas and proposed changes British HR departments should employ to counteract the changing labor market to help keep their organizations running smoothly and efficiently. To learn more about global HR compliance, click here
It’s almost been a year since new GDPR regulations were launched in the EU. There are evolving changes to GDPR as well as trends around the world that could affect your global operations. Learn more about the latest changes, ensure you are in compliance with data privacy and protection regulations, and avoid fines and penalties.
Privacy by Design
The importance of privacy and data protection has increased over the past year, with more countries focused on creating privacy laws to protect their citizens. India, Australia, and even the state of California have created new legislation designed to protect consumers and privacy rights. If your global organization is not focused on privacy, now is the time to act. The principles of Privacy by Design are being proactive, transparent, respectful of user privacy, and creating end to end security measures that protect personal data. You can stay ahead of new regulations by adhering to strict privacy guidelines, reviewing your data privacy protections throughout the year, and upgrading where necessary.
Brexit and GDPR
As more time passes and Brexit continues to be delayed, it looks like there may be a “hard Brexit” as the UK leaves the EU. There are several factors that could affect your business in the UK and EU related to privacy and GDPR. The UK is planning to create the exact GDPR regulations once they leave the EU, but the challenge for the UK is that the EU has the authority to judge the UK privacy policies and determine “adequacy”. One issue the UK might face once they leave the EU is the use and placement of security cameras in public areas. It has been estimated that if you walk one block on a street in the UK, there could be as many as 50 security cameras recording your movements. As the EU is very protective of the privacy of their citizens and the use of the data, this has been an issue between the UK and EU, and will continue to be an issue once the UK leaves the EU. The EU could potentially not give the UK an “adequate” rating due to the use of security cameras.
Since the inception of the new requirements in May 2018, regulators have been enforcing and investigating data subject complaints and fining companies for violations. Although the EU regulators are not giving the harshest punishments available, they are fining companies for non-compliance. Google and Facebook are often in the news for GDPR-related compliance issues, but many smaller companies in the EU are also facing penalties. In Denmark, a taxi company was fined £180K for not deleting customer records and retaining phone numbers of previous clients. Uber is also under investigation for limiting drivers’ ability to calculate their own pay and not providing drivers with requested personal data.
If you are not compliant with GDPR regulations, regulators can proceed with fines and penalties against your organization. They can begin a GDPR audit, get full access to any records, company locations, and can even raid your business locations with no warning. They can also order that you stop certain business activities, and give you specific timeframes in which you must comply with GDPR requirements.
Making sure your global organization is prepared for new GDPR updates, following the required guidelines, and using Privacy by Design best practices when creating new products or services to avoid strict penalties and consequences to your global business. To learn more about Blue Marble GDPR and privacy policies, click here to visit our Compliance Center
Global payroll and HR can be challenging – each country has its own set of regulations, different year-end deadlines, tax and labor codes, and more. Keeping all of the country requirements and annual changes in compliance can become a nightmare without some help. So how do you manage all of the global deadlines and keep your global payroll and HR running smoothly?
Just as the US has specific regulations for employers, payroll, and benefits, so does every country in the world. If you have employees in multiple countries, you need experts in each country to help you manage employment contracts, handbooks, statutory benefits, and payroll. If your team in the US is trying to manage employment laws, regulatory changes, and stay up to date with payroll requirements and taxes, things can get lost in the shuffle and you could potentially be non-compliant and face penalties without even knowing you were missing something.
Payroll and HR Technology
Using a payroll or HR software can help companies manage employees overseas, but if your payroll and HR technology is not integrated, your payroll and HR teams are duplicating efforts, using the same data in multiple systems, and most likely managing payroll and HR with manual processes. With so many opportunities for error, it is important to standardize processes for payroll and HR and find a technology that can be integrated so the employee data is entered once and utilized for both payroll and HR.
To manage your global teams, you need the right technology and in-country experts to ensure accurate payroll and regulatory compliance. Removing manual processes and duplicate efforts saves time and resources from both your payroll and HR teams. Integrated technology also gives you real-time reporting tools to manage your global workforce, spot trends, and make changes where necessary.
Global deadlines are not going to get easier – you need to have a plan in place to stay ahead of regulation changes and be prepared for new deadlines. To learn more about simplifying your global payroll and HR, click here
In 2019, we will have access to more technology and programs than ever before. Each year new systems get released to help streamline our human resources systems and make us even more efficient at our jobs. While digital scheduling systems have been around for quite some time and have drastically improved our ability to manage many employees’ schedules, it can be argued that not every aspect of Human Resources should be digitized. With this renewed emphasis on technology in 2019, are we at risk of losing the ‘human’ in Human Resources?
Artificial Intelligence and digital systems are changing our current roles and responsibilities within the workplace. Nowadays there seems to be a system for everything including, but not limited to, applicant tracking, scheduling, learning, performance and talent management and even conducting interviews. Technology has become so reliable that some employers don’t even feel the need to conduct the initial stage of an interview anymore. It is becoming common practice that many organizations ask prospective employees to submit a video, rather than coming into the workplace to have a traditional interview. This then gives the prospective employer the luxury of watching the video as many times as they would like to analyze the candidate’s performance. While this seems like an increased analytical approach, are organizations are risking the ability to use intuition and feeling usually gained by having a face-to-face interview?
With more and more companies focusing on employee engagement and building great work cultures, it can be very risky not to get a good sense of how a new employee would fit in within your existing culture and workforce. In contrast, there can also be some benefit to digital interviews when prospective employees live far away and are looking to relocate. Even so, live digital interviews via a video chat system, like Skype, could potentially be more insightful than pre-recorded and submitted messages.
One of the biggest ways that technology is increasing our efficiency in the Human Resources department is through the use of online or digital training models. Now you can ensure that each and every employee is receiving the same great standard of training without having to go through long periods of time doing ‘train the trainers’ for those who are in charge of distributing the training! In spite of an increased time investment of setting up a training program, the benefits reaped could be enormous when employees can access training whenever it suits them and at a pace they are most comfortable with for their learning styles.
Performance management systems are also gaining great traction from digitization. Gone are the days of stacks and stacks of paper files for each and every employee. This can be extremely beneficial when your staff are globally distributed. Now with digital performance management systems you can access employee reviews faster and easier than ever before. This also helps human resources see when comments were given in the past about a specific area that an employee needed to improve upon, and can help to gain better perspective on how the employee is performing within the organization over a longer period of time.
As it can be seen, there are many other benefits to digitization of the Human Resources department. Available systems can make routine paperwork like payroll, benefits and scheduling more efficient and error-free. Training and performance management systems can also be quite helpful when they are incorporated with technology to help the newest members of the workforce learn what to expect straight away. When we are not so bogged down with these routine tasks it frees up the Human Resources department to really improve upon the culture and employee engagement within an organization. However, organizations must be careful that this trend towards using technology for everything just to make the processes fast can also have a downside when we lose face-to-face human interaction in the workplace. To learn more, visit www.globalpeoplestrategist.com
While attending the HR West conference this past week, I was reminded of a reoccurring theme with companies that are expanding their global footprint: they are struggling to understand the arrangements they have with their global employees, the regulations in each country, and how to determine requirements for new countries where they are planning to expand. This trend is not only unique to those I spoke with last week, but common across companies I speak with daily. So how do you pay employees and maintain compliance in each country?
“Oh, we just pay them as contractors” is another common response to that question, along with confusion on what the legalities are around paying employees as contractors. Most companies don’t understand that US entities are typically not allowed to pay an individual living in another country to perform work unless they have established some type of formal employment agreement. While the employee may be self-employed, each country has different regulations and may still require taxes and other statutory payments to be made. Companies can face fines and strict penalties for non-compliance with employee payroll and benefits.
Another common issue companies face is that establishing and maintaining a presence in each country you operate in can be cumbersome and costly. While each country has varying regulations, companies often find themselves out of compliance with employment agreements, payroll and tax payments, and no reporting to monitor what is being paid to employees in each country. Compliance with local labor laws, language requirements, and employee payroll and benefits is vital to success in any new or existing country you operate in.
Blue Marble has taken the challenge out of global payroll and operations, with a US based team and in-country experts in 145+ countries to ensure you maintain compliance, manage local labor and tax requirements, and pay your employees accurately and on time. Our easy-to-use technology provides secure, compliant payroll, and our aggregated customized reporting lets you view your payroll across all countries and currencies in real-time. Our global consulting services team helps set up business entities, create customized employee agreements and handbooks, and ensures compliance in any country you have employees.
If you’re thinking of expansion, you need to focus on your core business and hiring the right talent in each country. Let Blue Marble help you navigate global expansion and simplify your global operations! Click here to learn more