An integral part of crew management for all ship owners and managers payroll is an essential day to day part of operations yet is more often than not overlooked in terms of investment and strategic direction despite being one of the highest costs of the business involving large cash flows often in multiple currencies and high risk areas in terms of compliance and reporting.
Of course, in our digital world many companies are seeking the silver bullet that utilises technology in a cost-effective way to ensure accuracy, compliance and employee satisfaction.
Historically Maritime companies have either utilised internal software solutions (many of which may be coming to an end of their shelf life) or outsourced to payroll vendors – but in reality, is it really this simplistic?
The very nature of the maritime industry as truly global and the many variables such as flag state, owner state, employee nationality, employee residency, contract variances, multi-currencies etc mean that the landscape is not that simple.
As a result, companies often end up with an assortment of in-house systems, excel documents, manual resources, local external companies, outsourced vendors and auditors to manage a key process.
The result of this on a Global basis tends to be over costly IT solutions coupled with excessive Human resources and external vendor costs resulting in significant gaps in the risk management, cash flow management and compliance areas.
A successful strategy in this area should allow for a combination of cost saving, modernisation of IT infrastructure, enhanced risk management, increased free cash flow, managed FX risk, optimised human resource and greater levels of compliance.
The initial areas to consider when setting out your Global Payroll strategy should focus on:
1) Are your payroll calculations in-house, external or a combination? Is this value for money?
2) Payroll is based on planning data – How efficient is your data and data exchanges?
3) Who is responsible for Payroll compliance and how compliant are you today?
4) How efficient are your cash flows and foreign exchange tools for salaries?
5) As a ship owner or manager how sure are you your payroll cost reflect accurately in you accounting systems?
Maritime, Oil and Gas Consulting Limited is a specialist in the above areas and can assist you in developing your strategy and understanding your current risks.
For further information or an initial discussion please contact:
firstname.lastname@example.org Tel: +44 7624 309281
email@example.com Tel: +44 7624 406355