Choosing the right Payroll model for your business!

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Choosing the right Payroll model for your business!

Payroll management at a multinational organisation can be riddled with difficulties, such as keeping up with constant regulation change, languages, and currencies. However, a global payroll system can also create opportunities for organisations which recognise its strategic significance and prioritise efficiency, local expertise, and business information. Companies must choose an international payroll system that helps achieve their objectives. Based on the above, there are three main payroll models - Centralized, Decentralised, and In-House.

More About the Payroll Models


The centralised payroll approach provides control to a single provider here. The provider oversees the payroll activities of the various in-country providers for an organisation. When a company is truly global some times it may be hard to find a single provider that covers every single country of presence.

Pros Payroll validation is conducted in a single currency and reduces inconsistencies. Workforce costs and data reports from around the world are accessible via a single point of access, providing companies with quicker and more precise data for analysis.
Cons This model demands a high confidence level between the firm and provider. A thorough periodic reviews will be necessary to verify the quality of the service delivered.


It consists of payroll teams at the company's headquarters and outsourced payroll processing partners within every nation in which the company functions.

Pros to local in-country suppliers provides instant cultural and legislative experience in the countries where a company operates, thereby reducing its compliance risks.
Cons In a decentralised system, payroll executives must handle several suppliers in different areas and time zones, creating inconsistencies in reporting from one source to the next. Since data comes from distinct sources, a global perspective on payroll data may be missing.


In-house payroll is the arrangement through which a business employs a payroll application hosted and installed on an individual cloud server. Such payroll software is frequently rented from larger software development businesses that handle tax and security upgrades. In-house payroll models need to build payroll teams for each country where the parent company operates.

Pros  The complete data on payroll and personnel, including the certification and processing of hiring, are managed internally via an in house system, granting the organisation hire to retire control of the processes, including statutory compliance. This approach indicates responsibilities for a single source, leading to immense trust among countries, offices, and divisions.
Cons  To retain comprehensive control on payroll delivery, the in house system necessitates a global workforce, often placing unnecessary strain on HR personnel. Additionally, an internal system may require time and resources to establish a comprehensive payroll infrastructure. Moreover, with this system may come internal challenges to keep local compliance and payroll teams fully trained.


Ramco Can Simplify Payroll Operations

Ramco is known for making payroll services manageable for human resources, relieving them of their load. Globally, Ramco's payroll services assist organisations with security, scalability, security, and productivity advantages. Ramco has highly qualified staff who minimise the chances of missing deadlines, making errors, and late payroll tax submissions. Ramco’s tools are powered by AI and ML and its innovative approach has been recognised by the GPA Awards wining the Innovation Award of the year 2021.

Variable organisational structures and different systems, regionally-driven human resource management rules, and financial requirements make integrated payroll administration a complex procedure. These are some of the reasons behind failing digital transformation projects as they prohibit the digital transformation of all aspects of your payroll services. Digital managed payroll solutions from Ramco will help you overcome these issues.

Matching Payroll Managed Services with the Company

Probably, you won’t discover one payroll partner that perfectly matches your worldwide presence. According to research by consulting firm Deloitte, just 13 per cent of large-scale organisations use a 1decentralised global payroll strategy. On the other hand. 60 per cent of the respondents used a centralised global payroll system, which may be due to its reasonable price.

The popularity of the gig economy has skyrocketed during the pandemic. Figures indicate that the global freelance market will keep rising at a compound rate of 15%. Due to growing demand, employers are increasing the short-term possibilities for Subject Matter Experts and specialised labour. Only the centralised payroll system can get gig workers on board smoothly.

Why Payroll Outsourcing is Ideal for a Large Company

  • Keeping Abreast of Compliance Regulations- Since the pandemic's beginning, the economy has grown unstable. Governments will update compliance rules to handle this, and HR staff may find it challenging to keep track of changes. Changing from manual to automated payroll software is necessary to prevent legal issues and instantly remedy any potential calculation errors.
  • Effective Data Management - A computerised system to track employee attendance, leave usage, and salary increases are essential for calculating payroll per legal standards. As your firm grows, the number of employees will increase, as will the variety of employment contracts as you hire contingent or gig workers.
  • Data Security - Protect workers' privacy through a payroll system from an accomplished third-party organisation that safeguards personal information through cutting-edge data storage and protection capabilities.
  • Decrease Employee Turnover - Since recordkeeping is streamlined through payroll, employees are less likely to be terminated. Records are continuously updated in the new system.

A large organisation gets tremendous convenience by outsourcing payroll to a certified company.

Still haven't found what you are looking for? Improve your payroll structure through Explore Ramco Global Payroll.