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GLOBAL PAYROLL UNDER PRESSURE

TIME FOR A DIFFERENT OPERATING MODEL – EY’S IGPS

Khatija Khan CA (SA), Africa Payroll operations remain resilient in payroll processes without enabling payroll functions to Reducing complexity and
Centre Leader, EY South Africa the face of disruption. disrupting delivery or operate effectively within an vendor sprawl: Managing
increasing risk exposure. increasingly disrupted global numerous local payroll
The global payroll landscape
anaging payroll is being shaped by the growing External factors further environment. providers often results in
across borders adoption of automation and AI, complicate this environment. EY’s Integrated Global fragmented processes and
Mhas always been rising employee expectations, Political change, sanctions, Payroll Solution (IGPS) has inconsistent outcomes. Global
inherently complex. Today, ongoing regulatory change trade disruption and economic been designed to address the payroll outsourcing helps
that complexity is intensifying, and broader geopolitical volatility can all affect payroll challenges payroll leaders are consolidate vendors and
driven by continued global and economic uncertainty. operations, sometimes with facing today, and currently establish a single operating
expansion, increasingly diverse Automation and AI are little warning. In these provides payroll services across model, improving governance
workforces and heightened already reshaping payroll conditions, global delivery 157 countries, underpinned by and oversight and strategic
regulatory scrutiny across operations, improving data experience, consistent a consistent global governance alliances with employer of
jurisdictions. What was once a validation, reducing manual governance and the ability to and operating model, deep record and third-party payment
largely operational function has intervention and enhancing operate across jurisdictions regional and in-country payroll service providers.
become a strategic focus and exception management. For become critical to maintaining expertise and a strong focus on Managing compliance with
critical enabler of workforce payroll leaders, the challenge continuity and control. technology-led transformation. confidence: Keeping pace
continuity and business is not whether to adopt these with local tax, labour and
confidence, particularly for technologies, but how to Against this backdrop, Naturally, EY has been statutory requirements across
organisations operating at scale. do so in a controlled and successful payroll leaders are positioned as a Leader in the jurisdictions is challenging. A

Payroll leaders are now responsible manner that distinguishing themselves Everest Group Multi-Country global payroll and labour law
expected to deliver consistently delivers measurable operational through the operating models Payroll (MCP) Solutions partner provides embedded
accurate, timely and compliant benefit without introducing they choose. PEAK Matrix® Assessment compliance expertise and
payroll outcomes across new risk. At the same time, Rather than attempting to 2025 – Global. regulatory monitoring,
multiple countries, while payroll performance has manage increasing complexity The Everest Group report reducing exposure to penalties
simultaneously supporting become increasingly visible in-house or across fragmented notes that: “EY integrates and operational risk.
transformation initiatives and to employees. Accurate and local providers, they are generative AI within its Creating capacity for
improving the overall employee timely pay, clear information working with outsourcing internal payroll processes, higher-value work: When
experience. These expectations and prompt resolution of partners that bring genuine streamlining payroll payroll teams are focused
are rising at the same time as queries are no longer viewed as depth and scale. These partners operations from source-to- on resolving issues and
payroll operating environments differentiators, but as baseline combine strong governance, gross through validation, managing exceptions, there is
are becoming less predictable expectations. When payroll advisory capability and stakeholder communication limited capacity for strategic
and more interconnected. falls short, the impact on technology expertise, stay and digital workflows.” It also improvement. Outsourcing
employee trust and engagement ahead of regulatory risk, invest highlights EY’s ‘Integrated
Although payroll is often is immediate, reinforcing the operational complexity enables
discussed at an organisational importance of service quality in technology that enhances Global Payroll Solution payroll leaders to focus on
accuracy, visibility and control,
(IGPS)’ as a unified platform
level, accountability ultimately and effective communication and place clear emphasis supporting multiple worker transformation, insight and
sits with the individuals within payroll operations. on employee experience, types, including employees, service quality.
responsible for delivery, particularly through contractors, mobile workers Accessing modern payroll
most commonly the head Overlaying this is a regulatory transparent and reliable and business travellers technology: Advanced payroll
of payroll, HR or finance or environment that continues to communication. As a result, while integrating payroll, platforms, automation and
global payroll lead. These roles change across regions, often global payroll outsourcing compliance, global mobility AI-enabled controls are
carry responsibility not only with limited notice. Labour has evolved significantly. It is and payroll accounting. increasingly essential but
for day-to-day accuracy and and tax regulations evolve no longer viewed simply as a difficult to implement and
compliance, but also for payroll frequently, requiring constant means of driving efficiency or In practice, IGPS is designed maintain in-house. Leading
transformation, maintaining monitoring and rapid response. reducing cost, but as a strategic around how payroll operates in providers such as EY offer
continuity when issues arise, Payroll leaders must ensure approach to managing risk, the real world, offering benefits these capabilities as part of an
responding to regulatory that changes are interpreted simplifying operations and such as: integrated service model.
change and ensuring payroll correctly and embedded into
Global payroll has become
one of the most complex
operational functions in today’s
organisations, with increasing
visibility and accountability.
For payroll leaders, global
payroll outsourcing is about
more than efficiency, it is about
building resilience, maintaining
control and enabling confidence
for business leaders and
employees alike.
EY continues to lead in
this space by combining
global delivery capability,
next-generation technology
through IGPS, and deep
payroll, tax and mobility
expertise. With a strong focus
on measurable outcomes, EY
supports payroll leaders in
navigating complexity and
preparing for the future of
workforce management. 

Connect with Khatija on LinkedIn
W: www.linkedin.com/in/khatija-
khan-ca-sa-bb689940

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