Managing payroll accuracy in Workday during business expansion, mergers and global growth
Expanding your business: The impact on Workday payroll
Business expansion – whether through new markets, mergers, or acquisitions – is a sign of growth and success. However, behind the excitement of scaling operations lies a critical challenge: ensuring payroll accuracy in Workday.
A misstep in payroll can lead to delayed payments, employee dissatisfaction, and operational inefficiencies. New tax jurisdictions, pay cycles, benefits structures, and workforce integrations can all introduce risks that impact payroll stability. If left unaddressed, these issues can disrupt operations, create compliance risks, and damage employee trust. For Workday customers, expansion isn’t just about adding new locations - it’s about ensuring payroll systems scale seamlessly to support a growing workforce.
Why payroll accuracy in Workday matters during expansion
Without a structured approach, payroll disruptions can arise when scaling operations in Workday. Expansion introduces new layers of complexity, requiring precise coordination between HR, payroll, and finance teams.
• Inconsistent or delayed pay: Integrating new entities, tax jurisdictions, and pay structures into Workday can create payroll miscalculations and processing delays.
• Employee dissatisfaction and retention risks: Payroll disruptions during transitions can erode trust and morale, leading to increased turnover.
• Increased administrative burden: HR and payroll teams often struggle with data migration, configuring new payroll rules, and ensuring system integrations work smoothly.
Key statistics from the Global Payroll Association:
• 1 in 3 businesses experiences payroll errors annually.
• 49% of HR teams spend over five hours each month correcting payroll mistakes.
• 53% of companies have incurred payroll-related penalties in the past five year
The takeaway? Payroll accuracy isn’t just about compliance – it’s about operational efficiency, employee trust and business continuity as your company scales.
Key payroll challenges for Workday customers during expansion
1. Data migration and payroll system integrations
When acquiring new entities or expanding internationally, merging payroll data into Workday is a critical step. Missing or inaccurate data can cause payment errors, tax miscalculations, and compliance risks.
Tip: Conduct pre-migration data validation to ensure payroll history, tax information and benefits configurations transfer correctly.
2. Multi-jurisdictional payroll complexity
Expanding into new regions means dealing with diverse tax laws, benefits structures, and employment regulations that must be reflected in Workday payroll.
Tip: Configure and test country-specific payroll rules within Workday before go-live to ensure compliance.
3. Workforce transition challenges in mergers and acquisitions
Incorporating employees from acquired companies often means reconciling different pay structures, benefits packages, and time-tracking integrations.
Tip: Run parallel payroll tests to compare old and new payroll outcomes before fully integrating acquired workforces.
4. Resource constraints and increased payroll complexity
HR and payroll teams often experience increased workloads during expansion, leading to bottlenecks and processing delays.
Tip: Use automated payroll testing tools to reduce manual efforts and ensure payroll stability.
5. Retroactive pay and event handling
Salary adjustments, bonuses, and mid-cycle hires can create unexpected payroll discrepancies if not thoroughly tested.
Tip: Simulate a full payroll cycle, including retroactive adjustments, to validate payroll accuracy before deployment.
Best practices for Workday payroll stability during expansion
To prevent payroll disruptions, organisations should follow a structured testing approach within Workday. Here are eight best practices to ensure payroll stability during business expansion:
1. Ensure complete payroll data migration
Validate legacy data before integration.
2. Test region-specific payroll configurations
Ensure tax, benefits and deductions align with new locations.
3. Run parallel payroll tests
Compare existing and new payroll outputs before going live.
4. Verify all payment components
Check salary structures, deductions, and taxation in Workday.
5. Adopt early and frequent testing
Detect errors before they affect employee pay.
6. Validate Workday integrations
Ensure time tracking, benefits, and HR systems sync correctly.
7. Perform regression testing
Confirm changes don’t impact existing payroll processes.
8. Leverage automation
Automate payroll testing for increased accuracy and efficiency.
Why proactive payroll testing matters for Workday customers
Payroll accuracy isn’t just a compliance requirement- it’s essential for employee satisfaction, operational efficiency, and risk mitigation. Companies expanding into new regions or integrating acquired workforces must ensure payroll operates seamlessly, preventing costly mistakes and disruptions.
By proactively testing payroll within Workday during business expansion, organisations can:
• Minimise payroll disruptions and delays
• Improve payroll efficiency across new locations
• Reduce the burden on HR and payroll teams
The path forward: Safeguarding payroll in Workday as you grow
Expanding your business should be seamless – not a payroll headache. A structured, automated approach to Workday payroll testing ensures smooth operations, accurate payments, and a successful transition.
Why choose Smart Test?
• Workday’s preferred payroll testing solution
• Automates payroll testing across multiple regions.
• Identifies payroll risks before they impact employees
• Scales with your business expansion for seamless payroll operations