Companies are increasingly turning to the foreign markets for growth, with mergers and acquisitions commonplace. In such a context, they need an appropriate Human Resources IT solution that can handle the needs of the different countries.
This solution must meet their specific local needs as well as enable consolidation of data on a global level to perform reporting and analysis required by an efficient and strategic HR policy. Cloud Payroll Services are very popular and are now being used by relocated companies in industry as well as the services sector and larger businesses.
A multicultural approach
The HR information system should provide the capability to handle the governance and consistency of HR data for all the countries and offer a clear view of human resources at the Group level. With a global solution that meets local needs, you can measure the complexity of multiple locations in terms of management and harmonization of data.
Each country has its specific requirements: collective agreements in France, for example, or Terms and Conditions of employers in the UK. A solution is also required that will meet the needs of Her Majesty’s Revenue and Customs (HMRC).
The French concept of “cadre” (executives) and “non-cadre”, as well as socio-professional categories, are not perceived the same way in every country. Therefore, we need to define common terms within the Group that must be clear and understood the same way by all the countries. When there are many differences from one country to the next, the measures most favorable to the employees are usually maintained.
Also, a standard payroll model may not exist in some countries. Before we go about setting up an HR solution, we need to create a questionnaire that will help us understand how companies in the Group manage their human resources, based on local laws and customs. This is a difficult task, but a necessary one. We can use mappings of legislative constraints for each country, particularly France. Employers are generally confronted with functional complexity in countries in the West, while in Eastern countries handling semantics of the languages is the main problem.
International Core HR, keystone of the HR system
International Core HR is essential for structuring all the data for the Group. It is organized into subgroups for specific local requirements. International Core HR is the foundation for strategic HR data and thus provides a realistic and very pragmatic view of the situation. It ensures consistency of administrative processes and is the basis for building new HR offerings.
The current trend is for companies to provide a multitude of services to employees, such as a self-service or an HR workspace that will allow them to directly and easily handle their administrative documents and absences and access their profile and specific HR data.
In addition, when deploying a payroll management solution in a new country, International Core HR is useful because it is shared by all the countries that the company covers. It also encourages a corporate Group culture, by helping to communicate the Group’s values, its HR processes and HR policy within the countries.
HR today plays a strategic role internationally, since it ensures cohesion through HR tools and services that communicate the Group’s culture throughout the world. Focusing on employees’ needs and expectations, just like we focus on customers, will boost the Group’s culture on an international level.