Saturday, August 18, 2012

What Payroll strategy/operation model good for your company...

I was preparing for a seminar in Singapore due on last May 2011.............but due to several reasons i couldn't make it.
The thoughts i gathered for the seminar with respect to payroll delivery model were something i wanted to share.
The specific aspect how a companies financial condition impact its payroll model............to outsource or in source .... remote processing or in country processing......... high touch or high tech or both........ERP or best of the bread ........ country focus or region focus or global focus......so on.
I always propagated model of semiglobalisation (slide 4) by Pankaj Gemhawat to analyse the same.Bulleted List
The delivery model is a mix of :
1. Aggregation
2. Arbitrage
3. Adaptability
But question is what drives this mix.
I looked at financial details available on public domain for some companies to chk if that indicate towards difference in their model. Below is some details.
It was very evident that...... revenue per employee and profit margin per employee are big drivers . Along with companies operation profit margin. Though these ratios are industry driven but it is rather the financial position than industry which drove the companies payroll strategy.

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