Want to pay a global team without breaking the bank?
Payroll management has historically been extremely difficult across borders. Currency differences, unclear regulations, and expensive transfer fees were just some of the reasons growing companies had a tough time scaling internationally.
But guess what?
Technology has evolved. Digital payroll software has completely revolutionised how modern businesses pay their distributed teams. With advances in fintech software and low fee money transfers, businesses of any size can now automate their global payroll operations.
Quick note: that means less time, lower costs, and continued compliance.
Ready to learn how?
Here’s everything you need to know about managing a global payroll, including:
- Why Digital Global Payroll Is Trending
- Fees Are Ruining Cross-Border Payments
- Digital Payroll Tech Provides a Solution
- What To Look For In A Global Payroll Solution
- Why Businesses Love Low Fee Money Transfers
Let’s jump in.
Why Digital Global Payroll Processing Is Trending
Before getting into what digital payroll processing can do for businesses expanding internationally, let’s take a quick look at why more businesses than ever are going global with their teams.
The number of distributed workforce employees has skyrocketed in the last decade. According to studies done by Remote, over 32 million Americans now work remotely full-time. That’s about 22% of the total workforce. And that number is only increasing around the world as companies continue to outsource talent overseas.
What does this mean for businesses?
It means companies are no longer constrained by geography. Instead of recruiting within commuting distance, modern businesses can source top tier talent from around the globe.
And that opens up a whole new can of worms when it comes to payroll.
Processing payments internationally takes extra steps. Companies must now figure out how to pay people in different countries with different currencies. By automating global payroll with low fee money transfers, businesses can process payments overseas just as quickly and easily as they would domestically.
But before getting into how digital payroll tech solves this, it helps to start by understanding currency exchange rates. See why transferring money overseas is so expensive without it.
What Fees Are Really Doing To Cross-Border Payments
Here’s the secret most businesses don’t want you to know.
Sending money abroad is very expensive. According to recent analysis, global corporations spend $120 billion each year on transaction fees alone when moving money between countries.
Yeah, you read that correctly.
These fees come from various sources like currency conversion costs, intermediary banks along the payment chain, and hidden exchange rate markups.
And the pain doesn’t stop there.
Transaction fees are especially egregious for SMEs looking to hire internationally. Businesses are losing upwards of 3-5% per transaction due to inflated fees and horrible exchange rates. Multiply that by monthly payroll cycles and it’s no wonder companies are hesitant to hire foreign nationals.
Imagine having to pay hundreds or even thousands of dollars in fees every month just to pay employees.
It doesn’t make any sense. And that’s where digital payroll technology comes in.
How Digital Payroll Tech Provides a Solution
Companies spend millions of dollars each year trying to solve the pain points discussed above. And digital payroll processing platforms are at the forefront of that spending.
Say goodbye to third-party intermediaries. Automated platforms allow businesses to pay employees overseas without the outrageous fees. Here’s how.
Payroll Platforms Automate Currency Conversion
Currency conversion doesn’t have to be painful or expensive. Modern payroll platforms use top-of-market exchange rates to convert money in real-time. Businesses no longer have to wait around for banks to process international conversions at inflated rates.
Payroll Platforms Take Care of Compliance
Every country has different tax laws and employment regulations. Payroll tech automates those calculations automatically so businesses don’t have to hire legal teams in every country.
Payroll Platforms Batch Process Payments
Sending 50 separate wire transfers costs more than batching those transactions together. Digital payroll platforms process domestic and international payments as one.
Payroll Platforms Are Straightforward About Fees
This is huge. Most payment providers include hidden fees in their exchange rates. Software that specialises in payroll will be upfront about costs. Why? Because paying employees is their bread and butter. They don’t want any surprises on the business end.
According to a PayrollOrg survey, 63% of payroll professionals ranked compliance as their biggest challenge when paying international employees. Digital payroll platforms have made it their mission to ease this burden.
Interested in learning more? Check out this related article on payroll automation software.
What To Look For In A Global Payroll Solution
Alright, the solutions to managing international payroll exist. But what should businesses look for in a platform?
There are four major categories to evaluate.
Payment Software Should Support Multiple Currencies
If a platform only supports USD payments, they’re probably not built for global payroll. Software should allow businesses to transact in any currency with low fee money transfers. Period.
International Payroll Tech Should Enforce Compliance
Every country has different payroll regulations. The right payroll platform should automatically account for local taxes, benefits, and payroll deductions.
Payroll Software Should Have Fast Transfer Speeds
Nothing hurts employee relationships more than paying people late. To that end, global payroll software should have payment speeds that rival domestic transfers (1-3 business days).
Software Should Integrate With The Existing Stack
For some reason, payroll software is notorious for being siloed off from HR and accounting systems. Make sure the solution integrates with the existing software ecosystem.
The Takeaway:
Running payroll for a global workforce shouldn’t be any harder than running payroll for an in-office team. Find a tool that allows the business to scale its current operations, and success will follow.
Why Businesses Love Low Fee Money Transfers
The need for affordable, fast international money transfers is only going to grow.
Remote work is popular now more than ever. And as more companies go remote, low fee money transfers will become table stakes for running payroll overseas.
That’s why the global payroll outsourcing market reached $9.7 billion in revenues back in 2024. Experts are estimating this number will grow to $15.5 billion by 2033.
Companies are taking notice and will continue to invest in business infrastructure that lets them pay global teams cheaply and efficiently.
Businesses with digital payroll tech will win the global hiring race.
They’ll be able to source talent from all over the world without overspending on transfer fees. They’ll gain employee trust by paying people on-time and in their local currency. And most importantly, they’ll scale rapidly because their payroll department can handle peaks and valleys.
Bringing International Payroll Together
Looking for payroll software to manage global teams? Now is the time.
Managing employees across borders is extremely easy these days. And software is only going to continue getting better. Here’s how digital payroll solutions help businesses…
- Pay teams in their local currency
- Take care of local compliance and regulations
- Enjoy low fee money transfers
…And so much more.
Prepare for international expansion by researching payroll tools today. Don’t let onboarding logistics hinder global business aspirations.
Paysend is committed to providing businesses and individuals with affordable cross-border payments. Visit the homepage to learn more about how Paysend makes transferring money internationally stress-free.
Caroline is doing her graduation in IT from the University of South California but keens to work as a freelance blogger. She loves to write on the latest information about IoT, technology, and business. She has innovative ideas and shares her experience with her readers.
