The future of global employer services: Key trends and challenges for Melbourne leaders

As businesses in Melbourne and beyond face rapid changes in workforce management, the complexities of global employer services are increasingly at the forefront.

Rick Kimberley, RSM’s expert in Global Employer Services, sheds light on emerging trends and the challenges that CFOs, directors and CEOs must navigate as they manage payroll, tax compliance, and employee mobility in a post-pandemic landscape. From regulatory complexities to the influence of sustainability and technology, Rick highlights key considerations shaping the future of global employer services.

The shifting workforce landscape

Melbourne’s strict COVID-19 lockdowns reshaped the workforce, with employees proving their productivity outside traditional office spaces. This shift has driven a surge in remote working arrangements, not only in Victoria but Australia wide, impacting talent acquisition and retention strategies, prioritising skillsets over physical proximity, with many adopting global recruitment practices to address talent shortages. Rick notes:

"We’re seeing companies become more open to short-term mobility arrangements, such as nine to twelve-month assignments. While this addresses employee preferences, it complicates tax compliance and payroll systems for organisations."

The firm’s commitment to understanding industry-specific challenges will play a crucial role in helping clients navigate the complexities of Melbourne’s future economy. RSM is investing in data analytics and digital transformation models to enable predictive insights that improve margins and drive efficiency.

Navigating tax compliance and payroll risks

Australian businesses face unique tax challenges, including fringe benefits tax and payroll compliance. Non-compliance carries significant financial and reputational risks, making proactive management essential. Rick emphasises the importance of a single global view for cross-border employment compliance. 

“It’s critical to align international payroll systems and tax obligations to avoid double taxation and ensure consistent employee entitlements across jurisdictions.”

The rise of technology in compliance

Technology plays a transformative role in automating payroll processes and enhancing compliance. Analytical models and continuous monitoring tools are becoming standard for detecting discrepancies in payroll and tax compliance.

“Organisations are moving beyond remediation toward future-focused governance,” says Rick. “Automation and analytics enable real-time insights, helping CFOs and directors ensure accuracy and efficiency in payroll compliance.”

The role of employer of record (EOR) services

As remote work expands across borders, Employer of Record (EOR) services provide a valuable solution for managing employment risks in new markets. EOR providers handle payroll, compliance, and legal obligations for organisations without a physical presence in certain countries. 

However, Rick cautions organisations to carefully evaluate EOR providers, ensuring they align with the company’s risk management and compliance frameworks. A company’s success hinges on the strength and dedication of its workforce. To thrive, businesses must align employee goals with organisational objectives and ensure employees are appropriately rewarded for their contributions.

Sustainability and ESG in employee mobility

Sustainability and ESG considerations are influencing mobility decisions, with organisations rethinking travel policies to reduce their carbon footprint. 

Rick explains, “While still emerging in Australia, these factors are becoming part of the conversation, especially as businesses explore alternatives like remote work and virtual collaboration to meet ESG goals.”

Proactive disclosure and risk management

Compliance risks in payroll and tax are compounded by regulatory bodies’ increasing use of data-driven audits. Rick highlights the importance of proactive disclosure to mitigate penalties and maintain control of compliance narratives.

"By addressing potential discrepancies early, organisations demonstrate their commitment to ethical practices and avoid being flagged by authorities. It also gives them the ability to control the narrative" he advises.

Preparing for the future

The future of global employer services is data-driven, with regulatory authorities like the ATO leveraging granular insights for real-time audits. To stay ahead, CFOs, directors, and CEOs must embrace technology, develop robust compliance policies, and foster cross-functional collaboration.

Rick concludes, “The ability to integrate data analytics, automation, and governance will be essential for businesses to navigate the complexities of global employment in the coming years.”

FOR MORE INFORMATION

RSM’s commitment to excellence and forward-thinking strategies offer a roadmap to success. Contact us to see how we can navigate the future together.