If you're considering expanding your global hiring, you aren't alone. Data suggests that more companies will hire across borders in 2023 and beyond—and for good reasons. Global hiring opens up the available pool of talent you can source workers from, allowing you to connect with the best and the brightest.
That said, it's critical to implement a cohesive global compensation strategy if you're going to source talent worldwide. One essential building block of that strategy is a global compensation tool. Whether you're a People Ops leader or a Finance manager, if you're dealing with international staffing, this is a must-have.
The right global compensation management tool can simplify pay and benefits processes, streamline workflows, and minimize stress. Below are some suggestions for what to look for in global compensation software.
Key considerations for choosing a global compensation tool
There are a lot of different global compensation systems to choose from—which is great. The problem? The diversity of options can be overwhelming. Here are some points to consider when shopping around for the perfect tech for your organization.
1. Compliance and regulatory support
Different countries have different rules when it comes to details like tax and social security withholding. Global payroll compliance refers to the process of making sure your payroll policies and processes align with the relevant legislation, whether you're paying someone in Argentina or Austria.
A comprehensive global compensation tool isn't just number-crunching software. It acts as a smart partner, providing guidelines regarding local tax and reporting requirements across multiple countries.
2. Multi-currency support
When you're employing people around the world, you could be paying in anything from euros to pesos. A great global payroll system will offer multi-currency support, like providing real-time currency conversion rates.
If you owe your employee $2,000, the tool can calculate the conversion to their local currency—sparing both you and your employee unnecessary headaches. Conversions and fluctuating currency rates are only one consideration in multi-currency global payroll. This guide to calculating global salaries covers other essentials, like considering local minimum wage requirements.
3. Streamlined processes
The entire point of implementing a global compensation tool is to save you time and stress—not to make things more complicated. Look for systems that simplify workflows, for example by consolidating compensation data across multiple locations or leveraging automation tools.
4. Flexible benefits
Compensation goes well beyond actual cash. To remain competitive in the modern hiring marketplace, employers need to offer their employees comprehensive benefits. In-demand benefits include health insurance and flexible leave.
Whatever benefits you offer, make sure your global compensation tool can adapt accordingly. It shouldn't just deal with pay but be able to manage diverse types of benefit plans across regions. Prioritize tools that are customizable and scalable, so you can make sure your employees—not just their bank accounts—are taken care of.
5. Accurate global compensation benchmarking data
Providing adequate compensation usually means going above minimum wage. You can't just look at labor laws to figure out what to pay your people. A global compensation benchmarking tool can help analyze salary trends and provide cost analyses. This helps you stay competitive in the globalized hiring marketplace.
If you pay below market value, for example, you likely won't access highly skilled people. Why? They'll be running to your better-paying competitors instead. Good compensation benchmarking software thus improves your reputation as a fair employer.
6. Security and data privacy
Global compensation technology holds a lot of data—some of it very personal. Depending on the tool and what you use it for, software can contain everything from employee names and addresses to bank account details, insurance numbers, social security identifiers, and more. The last thing you want is for that data to get breached.
Make sure that whatever tool you use has adequate security measures to safeguard against hacks or leaks. You also want to consider global data privacy regulations, like the European Union's General Data Protection Regulation (GDPR).
7. User-friendliness and accessibility
If a platform is too clunky and complicated to use, odds are you simply won't use it. User-friendliness is a key factor to consider! Look for an intuitive interface that's easy to navigate. Ideally, you'll be able to try out a tool with a free test drive before signing up and investing in it.
8. Support and reputation
What happens if you experience a tech glitch? What if you accidentally delete an employee's data and don't know how to recover it? What if you're hacked? Knowing who to call when issues arise with your global compensation software is essential. Ideally, there will be a comprehensive support system to assist you.
Ask what types of support are available for customers, from chatbots to phone lines. Additionally, do your own research. You can often look online to find out more about a software provider's track record for customer service and responsiveness.
The best global compensation tool doesn't have to be the most expensive one. That said, you may not want to go the cheapest route either. The key is to figure out exactly what features and flexibility you need from a tool. You can then shop around with confidence.
Make sure to read the fine print regarding pricing structures and scalability. For example, if you have a team of ten but will scale up to 200 employees, can the software accommodate that? How much extra will it cost you? Price comparisons can help you assess your return on investment in terms of time and resource savings.
10. Case studies and success stories
Real-world feedback is the best way to find out how effective a software product really is. Check every potential provider's website for case studies and read through success stories. This can give you an idea of what to expect. Proceed with caution if there are no case studies available.
Let Oyster help with global compensation
Ready to get started with your global compensation strategy? A comprehensive global compensation tool is the next step. But don't just settle on the first tool you find. Follow the tips above to find a product that fits your needs.
Oyster's compensation and benefits solution helps companies hire in more than 180 markets worldwide. You get an easy-to-use tool, plus access to Oyster's experts, who help ensure you're compliant in your market. It's the all-in-one answer you need.