"Employee satisfaction spearheads business strategy in present times. Pay cheque being the biggest worry for any employee, a business can conquer this worry and ensure employee satisfaction, if its payroll function can win the trust of its employees," E&Y Tax Partner and National Leader (Human Capital services) Sonu Iyer said.

With the volatility in tax laws and tax procedures in India it is very important to have a dynamic payroll function that is quick to respond to changes, and continues to win the trust of employees, Iyer added.

Seven out of 10 (70 per cent) of the respondents are not confident that a global vendor currently exists that can provide a truly global payroll solution, it said.

Respondents identified a number of issues as potential hurdles, from total cost of the overall solution (16 per cent) to the vendor understanding and meeting specific requirements (14 per cent) and legal and regulatory requirements (12 per cent), it added.

Nearly half (41 per cent) are not considering adjusting their payroll administration model, even though a third (35 per cent) plan to expand into new global markets.

Out of the total 161 respondents, 68 are considering expansion into new markets within the next year; the survey said adding only 11 per cent of these are in the process of actively pursuing a global payroll solution implementation as part of their expansion.

Whereas majority with 41 per cent have not begun considerations at all, it added.

The risks associated with payroll errors are that the tax and regulatory implications are costly and time consuming, the perceptions and confidence of employees decrease with paycheck errors and the time and expense of correcting errors creates a significant downstream impact to the general ledger, it said.

(With PTI Inputs)

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