Global Payroll Funding Challenges for Multinational Organizations

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Managing employees across multiple countries has many challenges – from payroll to statutory benefits, the unique requirements in each country can make it difficult to maintain compliance.

Funding global payroll is one aspect of global operations that can be difficult to manage and track. Companies spend thousands each year on currency conversions and bank payments to fund their global payroll. Here are the common payroll funding options multi-national companies use today and ways to streamline the process and improve visibility.

Local In-Country Bank Accounts

The most common method of funding global payroll is using a local in-country bank account. The funds are pulled in the local currency into the in-country provider or trust account, and then payments are made to employees in that country. Many countries require companies to maintain an in-country bank account in order to pay employees, and for larger operations (more than 10 employees in one country), it is sometimes easier to manage payroll funding with a local account.

Using an International Bank or Foreign Exchange System

The second most common option companies use for payroll funding is transferring from a U.S. bank to a FX exchange or treasury management system, which then transfers funds to the local banks to make payroll. There is an added layer in this transaction, to fund into the international bank before the local accounts are funded for payroll. There are high wire and transaction fees, multiple touch points for service and delivery, and there is very limited tracking or customer service if something goes wrong. There can be several days of delay for one bank to receive funds before transfers can occur, which can result in delayed payroll to employees.

No In-Country Bank Accounts

For companies who do not have local bank accounts, it is very costly to fund global payroll each month. Wiring funds from an FX exchange to the local in-country providers or trust accounts takes days to settle funds, there are high fees associated with the transfers, and there is no tracking or managing exchange rates. Companies risk delays in payroll, and there are many manual processes to manage each month to ensure the funds are directed to the correct accounts.

Solving Global Payroll Funding Challenges

Blue Marble has helped companies solve payroll funding challenges by providing integrated treasury management services. You can fund payroll from your U.S. bank account and settle in local currencies without an in-country bank account. We manage the transfers directly to local trust accounts, with full tracking capabilities within the global payroll platform. You also have a dedicated service team to help when any funding questions come up. We make it easy to pay employees, you save time and resources on high fees and exchange rates, and you have real-time tracking of your payroll funding.