Taking the first step towards Payroll Transformation journey
- Has your organization lately reviewed its payroll procedures?
- Are your organization’s payroll processes forward-looking?
- Is your organization leveraging the latest technologies to optimize payroll operations?
- Is your organization running the global payroll system on a unified platform?
If the answer to any of the above questions is NO, you need to ACT TODAY! Taking the first step towards change is always daunting. But it is necessary to do so - now more than ever.
Many organizations face the challenge of obsolete processes. They are in a dire need of a suitable payroll solution that addresses the standardization & harmonization needs while expanding to newer territories and geographies. Payroll processes demand equal attention and rigor as compared to any other core business process. Any move towards instituting an efficient payroll process starts with an in-depth understanding of the issues with the existing payroll systems. Simultaneously, you need to identify future objectives and understand the expectations from the envisioned global payroll solution. Once you have identified the requirements, it is essential to cast as wide a net as possible for identifying suitable prospective vendors. On receiving proposals from interested parties, choose a payroll vendor best suited to your needs with the help of a thorough and in-depth evaluation of all the responses.
Where to Start?
The organization must opt for a payroll system that caters to its current payroll needs and accommodates its future projected requirements. A proper ‘needs evaluation’ effort helps obviate wasteful expenditure of time and resources.
To arrive at the specifications for their future-ready payroll system, organizations need to assess all relevant business considerations like scalability- both in terms of headcount and geographical footprint, data security, data integration across locations, and other related factors. This approach — seeking answers or solutions to the issues identified in the existing system — is the most efficient means for preparing to source the best solution for payroll operations.
Critical Next Step
The next step is the crucial task of selecting a vendor that meets all the stringent requirements for payroll software. Organizations usually resort to issuing a Request for Proposal (RFP) to find the most suitable vendor. A clear definition of the requirements must be included in the RFP to find the best-suited partner in alignment with the firm’s payroll requirements of the future.
A comparative evaluation of the proposals received, forms the basis of the final selection of the Vendor who will provide the payroll software. This approach enables firms to identify the vendor that closely aligns with the organization’s payroll requirements and business goals & objectives.
The Global Payroll RFP: Getting it Right
The RFP template must outline the specific requirements that the organization is looking for in a global payroll solution provider. It highlights the vendor’s capabilities, details of the technology required, relevant deadlines, the application process, and the criteria for evaluating the received proposals.
The hallmark of a good RFP is that it elicits comprehensive responses from interested and capable vendors, which, in turn, enables the issuing organization to save time and effort on pointless communication.
A global payroll RFP must be mindful of the following aspects
Fulfilling Business Need:
The primary purpose of this exercise is to fulfill a business need. An in-depth, internal evaluation of the existing system, its drawbacks, and the capabilities necessary to meet future requirements should precede the issuing of the payroll RFP.
Hence, the issuing entity should thoroughly evaluate its needs and seek inputs from all the relevant stakeholders. The coordination of effort for seeking these inputs automatically leads to organization-wide buy-in.
Long-Term Approach:
A strategic approach to future payroll requirements by keeping the firm’s long-term business objectives and anticipated growth in mind is a must.
Payroll Requirements Definition:
An evaluation of the desired capabilities of the global payroll software also helps identify shortcomings in the existing payroll system that requires addressing through the new system. The flaws could be factors as follows:
- Error-prone and inadequate system due to outdated technology
- Lack of data integration across locations/applications, making it difficult to calculate total workforce spending
- Difficulty in managing compliance requirements across locations/countries,
- Absence of provision(s) for troubleshooting
- A need for separate systems for payroll and payments and inadequacy for generating required reports.
Bid Evaluation:
The RFP should transparently lay out the benchmark(s) against which the issuing firm will evaluate the solutions/proposals received in response to the RFP.
Level Playing Field:
The company should communicate the same criteria/specifications to all the parties, making it easier for the procuring agency to compare various vendors’ product features and prices.
Global Payroll RFP: What are the Essential Components?
A global payroll RFP should necessarily include:
Organization Overview:
Provide a brief background of the organization, including relevant information such as number of locations, number of employees, expected services, etc.
Details of Current Process/Systems and Desired Objectives:
Provide a brief description of the objective for procuring the new payroll system. You also need to provide the details of the current system. If it caters to any interface required with the existing attendance software, business intelligence systems, reporting systems, HR management system, etc.
Requirement Specifications:
A description of the technical requirements allows the vendors to assess if their offering for the global payroll system will meet your needs. The requirement overview also enables the vendors to provide complete information required for solution implementation.
Miscellaneous Requirements:
Outline all the requirements, such as the bidding company’s track record of past supplies of the payroll software, information security, implementation methodology, compliance requirements, etc.
Final Selection Criteria:
Clearly explain the selection criteria for deciding the winning bid. The clarity in selection criteria enhances transparency and eliminates the possibility of allegations of unfair practices, favoritism, and litigation.
Desired Timelines:
Communicate the specification of the timelines for the receipt of responses and implementation completion date.
Cost Details:
Specify the various costs that your firm will consider in cost calculation for deciding the winning bid.
Clearly, in picking a vendor for global payroll, the topmost considerations are the capabilities of the payroll solution offered and the underlying technology. The price is a relatively lesser consideration. The payroll solution must provide greater automation, data integrity, data security, and, most importantly, insightful analytical reports to aid smart business decisions.
Help is at Hand
Many firms find it challenging to navigate the RFP process. A good payroll RFP is the starting point for laying the foundation of a mutually enriching relationship between two businesses — the contracting organization and the payroll vendor. Therefore, building a comprehensive template for a payroll RFP is critical.
Based on 25+ years of experience in delivering transformative payroll solutions, we at Ramco Systems have compiled an exhaustive payroll RFP Template covering all the key questions. Click here to download now!
To know more about our solutions, get in touch with us here.
