Strategies for Successful Global Compensation Collection
Collecting compensation details for employees all over the world doesn’t have to be a headache—even though it might sound complicated at first. For companies with global assignees, staying on top of global payroll is less about routine paperwork and more about figuring out a system that works best for everyone involved.
Collecting compensation details for employees all over the world doesn’t have to be a headache—even though it might sound complicated at first. For companies with global assignees, staying on top of global payroll is less about routine paperwork and more about figuring out a system that works best for everyone involved. Here are some simple strategies to ensure global compensation collection is timely, compliant…and a little less overwhelming.
Know What’s Needed
Every country has its own rules for reporting pay and expenses, so it’s important to get clear on what’s actually required. For employees working in the U.S., you’ll need to report all pay; both at home and abroad. In other places, and depending on the length of the international assignment, those same rules may not apply. The best way to keep things straight? Chat with your tax advisor. They can break down what you need to do for each location and help you stay out of trouble.
Set Up a Simple Process
Whether you’re collecting global compensation info yourself or getting help from a company like Cornerstone, start by laying out a plan and making sure everyone knows their part. Here are a few things to keep in mind:
- Timing: Figure out when each country’s payroll is due and set deadlines that make sense for everyone.
- What Data You Need: Make a checklist of all the info you need to collect, so nothing slips through the cracks.
- Keep It Safe: Remember, people’s pay info is private. Make sure you or your provider is using secure ways to collect and share data, whether through a system or just a spreadsheet.
- Double-Check: After you gather everything, reconcile the information to ensure all the numbers add up and nobody is missing anything you expected to see.
Avoid Common Pitfalls
Even with a solid plan, things might go sideways from time to time. Here are some tips to help keep everything on track:- Be Clear: When you’re reaching out to payroll teams around the world, use simple, direct language. Skip the slang and cultural references that might not translate well.
- Build Relationships: If you’re partnering with a company like Cornerstone, introduce your global payroll contacts and make sure they’re comfortable with the tools you’re using.
- Stick to Deadlines (as much as possible): Sometimes deadlines get missed. Try to find out what’s causing the holdup, and make adjustments where you can. It helps to have someone in each country who can help sort things out when things get off-track.
- Keep the Conversation Going: Check in with your teams to see what’s working and what’s not. Their feedback can help you keep improving the process.
- Be Flexible: Some countries might only have a few international employees, or the contacts might change from time to time. Be patient, it’s normal to have to explain things more than once!
To sum it all up, managing global compensation is a team effort. When you have a straightforward process, clear communication, and a bit of patience, you’re already halfway there. Keep things simple, listen to your teams, and don’t be afraid to tweak your approach as you go—you’ll find it gets easier with practice!Cornerstone has a tenured, experienced team that can provide you with total compensation reporting to aid your teams in a flawless year end – please reach out to your Cornerstone contact for your information.