International HR and Payroll is complex
Internationally active organisations have to deal with complex laws and regulations, local and central processes and a complicated web of HR-systems and service providers. The number of international organisations has grown over the last years, more and more HR systems and applications have entered the market and overall legislation is becoming more and more complex (think GDPR). On top of that, data and analytics driven HR has become more common and employees have gotten used to self-service tools to replace (paper) HR forms. These developments have great impact on the processes around international HR and payroll and result in organisations getting stuck in this field. That is when they reach out to us for advice to simplify or optimize their HR IT landscape.
Lots of variables
What makes international HR and payroll complicated, besides the clients HR IT ambition, is that the solution depends on a large number of variables:
- The location of international offices/branches;
- The number of employees per location;
- The in-house experience of the client with regard to international HR and payroll; and
- The desire for international harmonisation.
- On top of that, this is all complicated if the organisation has an international HQ outside the Netherlands and that office already has an HR IT solution. Especially if the other offices are required to participate in that solution.
Nothing fits perfect
The spectrum of available systems for international HR and payroll seems endless, but in reality there isn’t just one plug and play solution for our clients with international questions. There are multiple vendors that offer solutions for global HR issues, but these solutions unfortunately hardly ever match local requirements nor is it truly legally compliant in all relevant counties.
To find the optimal solution, and to minimize or eliminate manual interventions, we look for a combination of different international and national HR and payroll systems.
International HR and Payroll experience
Vroom uses its many years of experience in the field of system selection, process optimization and strategic workforce planning to come to the best combination of systems. Additionally, we can help clients find the right outsourcing partner and help implement the right solution when desired.
Known issues for international operating companies
Issues we often encounter in international organisations are:
- Using a local (Dutch) system for the international offices, that is unfit for their data. As a result, these international offices have to keep a separate (Excel) administration and/or double entries. Or worse, the international offices end up ignoring the Dutch system, only using the local (often payroll) system. This then results in the Dutch system becoming outdated;
- Using an international system that covers all higher HR processes very well, but is not able to facilitate local processes such as payroll and absence management. This again, leads to double entries in a second system (in each country) and/or Excel shadow administration;
- Many large Excel administration sheets, that can eventually be combined into international reports.
Next to the above issues, relevant for offices with their HR in the Netherlands, we also support Dutch subsidiary companies with their HQ outside the Netherlands, who are provided with an international solution by the HQ. We help them find a solution that guarantees the expected international alignment while securing to meet local requirements without double entries as well.
Please refer to our case studies for example cases of our international clients.