HR. Payroll. Benefits.

Global Human Capital Management

Can HR Drive Agile, Efficient and Reliable Business Transformation?

The number of transnational corporations has tripled over the past 2 decades. This business model – with a central global strategy but full operations in multiple countries – now generates a full 25% of the global GDP.

It is unsurprising that companies are leveraging technologies that enable business between any two points on the globe to advance quickly across geographies.

While globalisation proposes its set of challenges, those companies who are able to employ the right HR strategies to effectively leverage it are able to achieve the true benefits of global expansion.

Success depends on having global HCM solutions in place that help them to increase employee engagement, improve overall productivity, and efficiently manage a range of processes across international borders.

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GOING GLOBAL IS NOT AN OPTION. ARE YOU READY?

When an HR department is thriving, HR professionals are dedicating at least half their time to strategic planning, keeping the company competitive and compliant, and maintaining an aligned, engaged, and highly skilled workforce.

STREAMLINED GLOBAL HR – A MUST FOR PRODUCTIVITY

With the continued shift toward globalisation, Human Capital Management is coming into sharp focus as a potential driver for corporate success in the global business environment.

25%OF THE WORLD’S GDP IS GENERATED BY MULTINATIONALS

But when your employees are stuck in an endless loop of non-value added HR tasks – that can typically occupy as much as 50% of their time – efficiency suffers, strategy stalls, resources dwindle, and the HR department fails to fulfil its vital function within your organisation.

Productivity challenges are further exacerbated by globalisation. What will happen, for example, if your company decides to acquire a competitor in South Korea with a workforce of 10,000 – that needs to be onboarded and on payroll in 2 weeks?

In order to thrive as you expand across borders, your organisation needs flexible and robust workforce administration and talent management processes in place – from recruitment and performance management to global payroll and HR administration. And this begins with the right technology.

55%OF GLOBAL FIRMS ARE UNAWARE THAT A TRULY GLOBAL PAYROLL SOLUTION EXISTS

Global organisations with a higher adoption of HR technologies financially outperform their peers and are much more efficient. But clearly it’s not simply the number of tools that tips the equation.

Effective compliance and risk reduction entails staying current with HR technology, complex regulations, and fast-changing public policy that affects everything from compensation and benefits, to health care and retirement programmes.

This gets tricky when payroll is managed solely from a central point overseas. But ADP’s global payroll solution combines strong centralised best practices and visibility-enabling software with local experts on the ground in over 100 countries.

ADP harmonises payroll and HR administration across disparate systems and tools, cultures and languages, and at the same time ensures compliance with fast-changing laws, contracts, collective agreements, social security systems and tax regulations that differ by country – and even city.

Compliance is the number one concern for 60% of global or multinational HR leaders4. This comes as no surprise when we consider that compliance is costing global companies a staggering $3.5M each year5.

INTERNATIONAL HR DEMANDS SEAMLESS, SCALABLE TOOLS

GLOBAL PAYROLL – WITHOUT THE LOCAL COMPLIANCE RISK

1 ADP MNC Market Study, ADP Research Institute, May 20112 HR Service Delivery and Technology Survey Executive Summary Report, Towers Watson, 20133 Global Payroll: Myth or Reality? Ernst & Young, January 2013

90% OF ORGANISATIONS ARE LOOKING FOR A SAAS SOLUTION TO REPLACE THEIR EXISTING HRMS

4 True Cost of Compliance, Benchmark Study of Multinational Organisations, Ponemon Institute, Jan 20115 ADP HR Transformation Report, ADP, Inc., 2010

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In fact, one of the largest causes of inefficiency – which results in huge revenue losses for companies each year – is an accumulation of disparate, incompatible systems. Multi-country payroll suffers greatly here, with global firms managing an average of over 20 payroll systems at once1.

As companies extend across borders, they naturally inherit a heterogeneous set of HR tools and systems. This increases both TCO (Total Cost of Ownership) and complexity.

At some point, these growing global companies must integrate and streamline all their moving parts – or continued expansion becomes unsustainable.

In light of this, it is not surprising that nearly 90% of organisations are looking for a SaaS solution to replace their existing HRMS2. There are, in fact, quite a few global HR solutions on the market that enable cloud-based management of recruitment, performance, development, and HR administration.

The missing piece is invariably global payroll. In fact, a full 55% of global firms doubt that a truly global payroll solution – capable of ticking all their boxes – actually exists3.

ADP is one of just two vendors to offer a comprehensive HCM solution with scalable multi-country payroll. It gives users control and visibility of global payroll, as well as HR administration and talent management from both mobile and desktop.

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60%OF GLOBAL LEADERS NAME COMPLIANCE AS THEIR NUMBER ONE CONCERN

Selecting top talent and driving succession strategies to meet performance and growth objectives in the current economic climate means satisfying a multi-generational, culturally diverse and largely disengaged talent pool.

The global talent pool now has bigger demands and higher expectations, so attracting, aligning, retaining and developing this new global workforce is a matter of both becoming a brand of choice for potential employees and keeping your existing employees engaged.

In order to target specific needs and wants of existing and potential employees, and to

create learning initiatives and performance management programs that actually work, companies need data-driven insight.

Analytics leads to more customised attraction and retention programmes, and enables you to make more strategic decisions. You might discover, for example, that non-financial rewards are increasingly valued by employees, and that Millennials – the true future global workforce – are often more interested in an experience than a career.

These and other vital pieces of information inform cost-effective strategies for attracting and retaining the best talent in a very competitive global market.

Once core HR administration and global payroll are in place, you can begin to rethink global talent management.

Sustainable expansion requires keeping costs down and productivity high as you build global presence. The best solution is highly scalable and offers both centralised control and visibility, and local competence and risk management – everywhere you choose to do business.

ADP’s global HCM solution begins with flexible, robust, easy-to-use technology that provides integrated control and visibility of all core HR functions and seamless multi-country payroll.

To this it adds a network of central and local teams that ensure compliance and the administration of centrally governed best practices in over 100 countries and counting.

The benefits of such a comprehensive, integrated solution are felt at every level of the organisation. Overall costs decrease, processes run more efficiently, talent becomes more engaged and distributed offices align with central objectives.

With a truly global HCM solution, everyone – everywhere in the world you do business – experiences greater satisfaction.

DATA-DRIVEN TALENT MANAGEMENT

PUTTING IT ALL TOGETHER – IN A SINGLE GLOBAL HCM SOLUTION

MILLENNIALS ARE OFTEN MORE INTERESTED IN AN EXPERIENCE THAN A CAREER.

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ONE OF JUST TWO VENDORS THAT OFFERS A COMPREHENSIVE HCM SOLUTION (WITH SCALABLE MULTI-COUNTRY PAYROLL)

ADP does not give legal advice as part of its services. This document provides general information regarding its subject matter and should not be construed as providing legal advice. This material is made available for informational purposes only and is not a substitute for legal advice or your professional judgment. You should review applicable law in your jurisdiction and consult experienced counsel for legal or tax advice.

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To learn more about how ADP can help you realize all the benefits of HCM, visit ADP.com