Fagron is a global pharmaceutical company with a headcount of 3000 employees and a presence in over 25 countries across North America, South America, and EMEA.
Like many multinational organizations, Fagron’s payroll was decentralized, with each country operating semi-independently with in-country providers or in some cases in-house teams processing payroll and reporting to local headquarters, who in turn were accountable to corporate.
Fagron has experienced substantial growth over the last few years, driven by international expansion into new markets and a disciplined mergers & acquisitions (M&A) strategy.
As Fagron has grown, the complexity of its payroll landscape has increased exponentially. Integrating entire new business units from M&A is a complex process in itself, and it becomes more so when the payroll function is highly decentralized and there are no company-wide standards or processes to ensure new employees are correctly integrated into the organization.
Due to the highly decentralized nature of Fagron’s payroll landscape, there was a lack of control and visibility of local payroll operations and data. Payroll data was stored in local systems and was largely inaccessible to leadership, making it difficult to leverage the data to inform decision-making.
Furthermore, there was a lack of standardization and clear processes across the organization. With each country operating its payroll independently, the workflows, systems, and data generated by payroll operations were not harmonized. This made it difficult for payroll to properly support and enable the company’s aggressive growth strategy.
Overall, Fagron presented a picture that is common for growing multinational organizations.
In many businesses, the payroll function develops reactively as the company grows, without an overarching strategy. This can result in a lack of transparency, oversight, and accountability towards the rest of the org, and poor interoperability between the different payroll systems.
To solve this problem, HR leadership decided to move to a centralized payroll model, using Payzaar’s modular global payroll management platform to consolidate payroll management and increase governance and control across Fagron’s 25 payrolls.
The primary goal of Fagron’s transformation project was to improve oversight and control over its international payroll operations, especially in the EMEA region, where each country operated independently and was heavily siloed.
Leadership was keen to leverage existing payroll vendor relationships and minimize disruption since the local payroll services delivered high value to the local teams in most countries. The company therefore decided to adopt an incremental, targeted approach to improving the organization’s payroll operations.
Instead of contracting a global payroll aggregator service, which would require Fagron to re-implement all of its national payrolls with the aggregator’s network of providers – a highly time-consuming and disruptive process – Fagron valued Payzaar’s open, plug & play approach of providing standardization, governance, and control without having to change the existing local payroll providers.
To achieve this, Fagron overlaid Payzaar’s global payroll management platform on top of its existing national payrolls.
Payzaar’s platform is process and solution-agnostic, meaning it can interface and consume data from any national payroll and deliver standardization and governance by channeling data through a unified workflow and reporting suite.
In addition to workflow management, compliance and security were also important concerns for Fagron.
As a pharmaceutical company operating in a heavily regulated environment, all processes and workflows needed to meet certain standards in auditability.
Payzaar’s Operations Control module satisfied these requirements by enforcing a single workflow across all of the organization’s individual payrolls, and creating a fully trackable audit trail and clear sign-off procedures with segregation of duties.
The key factors why Fagron selected Payzaar as its global payroll system were:
Number of employees: 3000
Number of countries: 25
Payzaar products used: Operations Control, Reporting
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