The value of Localization for HR and HR systems

Getting the Core HR right is not just about having some fields and self-service. It is more about making sure you can understand your workforce (demographic, mobility, cost) but also making sure you can stay compliant and up to date with the latest changes happening in all the countries you are in! Indeed, localization will bring value not only for corporate but for all! It will drive adoption and enrich the solution as well.

I give you some insights on how to assess you are on the right track and make saving for your company.

Step 1: Knowing where you are

Recently at a customer event, one of the speakers admitted that they believed they were operating in 40 countries, after roll-out, it turned out it was closer to 50! It is not just about missing 20% of your company’s operation but more importantly ignoring potential key people and opening breaches for compliance.

So, now, your turn! Can you map all your entities?

The value of Localization for HR and HR systems

Step 2: Doing some math around localization

A simple formula for calculating the cost of « unlocalized » solution is:

COST = # of days to localize X average cost per day of solution developers

Just do a guess-timate for all your countries and for 5 years…yes, it often gets close to the million euro! If you want to be more comprehensive, just start adding cost of non compliance or cost of manual headcount for managing local policy which you don’t automate yet.

The value of Localization for HR and HR systems

And some years are bigger than others. At the moment, there is not just a trend but a big wave upcoming for e-filling (eSocial in Brazil, DSN in France, etc.) and they will stretch your current system(s).

STEP 3: Get the right tool to stay up to date

A lot of providers will tell you that they do it. Sure…Easy to say, harder to prove! Some simple questions you can use to validate good localizations:

  • Are the localizations for employee data?
  • Are the localizations for foundation data like legal entity too?
  • Do you speak my languages? English? French Arabic? Chinese?
  • How does the vendor inform you? and how can you easily apply the changes?

Be very specific in your question and ask for all your countries! As it is all adding up to potential headaches and gets you closer to the million euro:)

At SAP, we cover all this! For France for example, we have code INSEE for Job but also SIRET for Legal Entity! and the list goes on for +73 countries!

And for ease of use, we just reversed the workload and we put is on us to analyze the configuration you are running and push the right updates to you.

The value of Localization for HR and HR systems

Time for a « localization » sanity check?

So, hopefully those 3 easy steps started some reflections on your next move and the often underrated value of true localization for modern HR!

Core HR is only a start, but what about looking at benefits and payroll? The value and savings there might be even bigger! Check this video: