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Human Capital Management goes “glocal”

Posted by: ADP on 23 September 2015 in Human Capital Management, Innovation & Technology

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This post is the second in a two-part series that looks at the evolving role of HR practitioners in large enterprises and the shift in workforce management to meet increasingly complex regulatory compliance.

In a recent post, I highlighted the evolving role of HR professionals – and their metamorphosis into “HCM Strategists.” I’m also seeing another major shift in how our largest clients – those with 1,000 employees or more – manage their workforces.

Throughout 2015, a growing number of large companies have been focusing more than ever on a globally consistent Human Capital Management (HCM) experience. What’s driving this shift? It’s the increasing complexity of regulatory compliance. To keep pace with evolving payroll tax and employment laws across the world, many of our large clients now want to manage this critical function with a team of HCM and compliance experts that is focused globally, but that also recognizes a need for tactical execution locally.

The term “going glocal” is a good way to describe this emerging trend.

By going glocal, a company’s employees within individual countries no longer make their own compliance decisions. Instead, the organisation as a whole creates a strong foundation to help ensure compliance on a global scale. This approach enables a company to confidently manage compliance so it can focus on running its business – from addressing, say, anti-money laundering policies in Europe and China to the right to request flexible working in the UK, to other country-specific requirements in payroll, talent management, taxes and more.

A key component of a glocal approach is concentrating responsibility for compliance in fewer areas of an organisation, with decision-making support from other C-suite executives. For example, as HR Directors at multinational employers implement global payroll systems to simplify compliance with diverse payroll tax laws, they must closely collaborate with their CIO on issues such as how to host that system and store payroll data, given requirements from certain countries to house employee data within national borders. The HR Director and CIO also need to jointly determine how to secure that information in compliance with data security and continuity laws within the EU and other countries where the company operates.

In addition, HR Directors who embrace going glocal for compliance issues are increasingly collaborating with their CEOs and CFOs on decisions regarding the cost and expected return on investment related to global payroll and HCM systems deployed to support compliance efforts. They are also working closely with these executives to determine system impacts on employees and the company’s overall workforce management strategies.

As HR Directors assume greater responsibility for regulatory compliance, expect to see more large employers managing these decisions globally with support from local, integrated HCM systems. This will help them reduce both compliance risk and administrative burdens, freeing HR functions to contribute even more strategic value to the businesses they support.

How is your organization navigating compliance challenges on a global and local scale? Share your insights below.

Read the original blog post here.

Mark Benjamin

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TAGS: Compliance globalization HCM HR

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