Compensation services are so complex that it may make sense for companies to outsource them to a specialist. Global mobility management companies have extensive experience working with the regulatory requirements of different countries, so they know the relevant intricacies of local compliance and reporting. Because they understand the challenges the employer faces, they know how to relieve the employer of the burden of administration so the company can concentrate on more strategic objectives. In addition, they understand the requirements of compensation data collection by country and can assume this laborious task for the employer.
Global mobility management companies that offer compensation services have technology and processes in place that allow for fast, accurate and compliant reporting. This eliminates the need for companies to invest in acquiring these platforms and results in considerable cost savings.
In addition, they provide the required expertise and manpower. This prevents employers from having to invest in acquiring employees with this knowledge, which can be both challenging and expensive when the level of expertise needed to manage compensation services for a number of different global locations is taken into account.
Furthermore, ensuring accurate, timely payroll and reporting prevents companies from running into problems with regulatory and tax agencies at home and host locations. Being compliant and responsible not only prevents problems, it can pave the way for more business opportunities in the host locations.
A global mobility program can offer significant value to a company, not only due to the business opportunities it presents, but also because it facilitates the attraction and retention of quality talent. However, to remain in compliance with the rules and regulations of various countries, a well-run global mobility program needs accurate, timely administration and bookkeeping. Working with a global compensation services provider offers companies a cost-effective way to gain access to the expertise, manpower and resources needed to maintain centralized, organized payroll and tax reporting. And when the service provider assumes the responsibility of maintaining the latest technology platforms, it frees up the company and its employees so they can concentrate on their core business efforts.
Posted by Amy Mergler