Whitepaper

Global Human Capital Management and Payroll Compliance The Workday Approach

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As a leader in human capital management (HCM) and payroll technology, Workday supports organizations around the globe across a wide range of industries, sizes, and business models. We understand that each customer’s compliance journey varies based on a wide array of legal, institutional, and business factors. Our promise and practice is to provide customers with tools and information to support them in managing their global compliance obligations.

That’s why the Workday approach to global compliance focuses on three

central practices:

1 Trust and transparency: We are focused on building a relationship of

trust. We approach compliance as a partnership in which Workday plays

a supporting role to enable our customers to meet their obligations.

2 Our compliance community: We leverage both internal and external

experts to ensure we stay informed and ahead of the changing

regulatory landscape.

3 Flexible by design: We are focused on building robust solutions

that give customers the flexibility to meet shifting compliance needs.

The global-at-the-core foundations and frameworks in Workday

support over 60 million workers within Workday across the globe,

with deployments in more than 175 countries.

The Workday compliance commitment. Every business approaches compliance differently. It’s about having the right

information and expertise to build the functionality that global businesses need.

When it comes to meeting compliance challenges, our customers know what’s

best for their business. Workday partners with customers throughout the

development process and is committed to supporting their needs as they

evolve and change. There are a variety of channels Workday uses to connect

with customers on compliance, some of which include:

• Our Workday Community portal: Includes customer forums and

customer-inspired product enhancement requests called Brainstorms,

and complimentary access to our Global Monitoring Service as well as

the Global Matrix, an interactive map that provides an overview of our

location-specific configurations.

• Design partner groups: Customers work with our product teams to help

inform feature development.

• Customer user groups: Customers can share feedback and solutions.

Workday is offered around the world and provides a user interface in more than 35 languages.

Workday serves more than 4,050 customers globally.

Workday Payroll has over 2,625 customers around the globe, with more than 2,075 live.

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The Workday global-at-the-core design. The Workday approach to supporting organizations worldwide begins with a

global-at-the-core foundation and a number of frameworks. This global-at-the-core

design enables us to support customers’ global compliance initiatives with

functionality that spans across data, processes, and reports. The four layers of

the global-at-the-core functionality in Workday provide customers with critical

flexibility and discretion to adapt their compliance and business strategies to

meet changing global regulatory demands.

Layer 1: foundations and frameworks.

Workday enables customers to deliver appropriately tailored experiences

for employees around the globe. Foundations provide customers with

Workday-delivered options relating to geographic or regional characteristics

such as preferred display language, clock, and date and number formats, as

well as currencies. Each user has a locality preference which, in conjunction

with the security settings, determine data formats (name, addresses, date,

currency, time zones, and so on) as well as privacy preferences. All Workday

foundation and framework elements are protected by the robust encryption

and rigorous data protection capabilities in Workday. We encourage you to

visit our website for more information about our global security framework.

Workday delivers a number of frameworks that give customers the ability

to configure capabilities for their specific global, regional, and local needs.

One framework example is our business process framework (BPF) that allows

customers to define workflows for business transactions, perhaps requiring

certain steps (such as approval) depending on the nature of the transaction

or the work location.

Layer 2: language translations.

Workday currently supports 35 languages. The Workday user interface

automatically displays in the language linked to the worker’s location,

but the user also has the ability to select any of the 35 supported languages.

Layer 3: country and local configurations.

Workday-delivered country configurations supply purpose-built data fields,

business processes, and reports with country-specific preconfigured data

to streamline and expedite global deployments. These configurations offer

customers a starting point that they can adjust as necessary to meet the

specific needs of their organization and local configuration requirements.

The goal is to help customers ramp up quickly not only at deployment,

but also if and when they launch operations within a new country or expand

their choice of Workday features. Workday prepackaged content helps to

accelerate deployments, reduce implementation costs, and enable customer

self-adoption.

“If we didn’t have Workday, it would have taken us two to three times longer to make sure we are GDPR compliant. It would have also cost more for legal counsel.

Director People Services Operations, Collaborative Solutions

https://www.workday.com/en-us/pages/video-one-security-model.html

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Layer 4: customer configurations.

The customer configuration layer gives customers the ability to build reports,

integrations, and business processes to meet their specific needs and

requirements. Customers can build these configurations from scratch or

accelerate their deployment by using the flexible templates (business process,

reporting, and more) that Workday provides in the first three layers of the

framework. We enable customers to adapt Workday to their specific needs

and practices in order to manage their global workforce.

Workday is built on a single codeline, which means all customers are running

on the same version at the same time. This greatly improves the ability to

extend global configurations to all customers and for customers to share

applicable solutions.

Customer Configurations

Country and Local Configurations Language Translations

Foundations and Frameworks

Figure 1. Workday global framework.

Built for flexibility. Regulations and compliance obligations are rarely straightforward. We

recognize that each of our customers have unique challenges, perspectives,

and business requirements that add to the complexity of their compliance

journey. Business and industry requirements can impact the way companies

interpret and approach compliance challenges.

Given these differing perspectives and the need for flexibility, Workday aims

to provide customers with a range of choices in features and configurability of

business processes to support unique compliance objectives. We are able to

release updates to all customers with no disruption of service if and when the

regulatory requirements change.

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Built for control. Some processes demand precision—collective agreements are a perfect

example. Because collective agreements have a direct impact on employee pay,

there is no room for error and businesses must ensure that strict controls are in

place. Workday gives customers the ability to set rigid guidelines when building

collective agreements for different countries, as well as the ability to apply

those agreements to various business processes. Protective guardrails prevent

employees from receiving the wrong collective agreement. Strict security

and real-time reporting provide organizations with the comfort and security of

knowing that proper controls are in place where they need them most.

Figure 2. Collective agreement tracking.

Technology frameworks for practicing globally and managing locally. The ideal global business strategy enables organizations to practice globally

while managing locally. The ability to set controls at a global level, but with

the flexibility to manage specific in-country needs, is paramount. This is why

Workday built global frameworks into our global-at-the-core approach.

Below are three examples of these powerful, yet adaptable, native tools that

allow customers to manage global compliance without complex coding or

country-specific product knowledge.

Business process framework.

Workday allows organizations to harmonize global processes with the business

process framework. The BPF in Workday can accommodate multiple complex

business tasks within a single workflow. Customers can create a global

process for a global business need, such as “promotion,” while also having the

discretion and flexibility to set up a wide range of unique business process

steps based on the needs of specific locations, organizations, or groups.

For improved auditing, Workday business processes are dated and tracked,

so organizations have visibility into the steps in place for various business

processes at specific points in time.

“Internationally, Workday has been a home run for us. People can write in their local language and it goes right into the system. We found as the deployment for Asia-Pacific and Europe was done, we were able to meet all the labor regulations and all compliance areas we had concern with.

Scott Spradley Chief Information Officer for Global Functions, Hewlett Packard Enterprise

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Additionally, Workday provides over 550 standard common configuration

business processes to customers that can be configured to accommodate

diverse and changing business needs. The BPF allows businesses to incorporate

subprocesses, to-dos, approvals, integrations, reports, and actions as part of a

single business process to ensure that no crucial steps are missed. For example,

Germany requires works councils’ approval for any employee compensation

change. These approvals can be handled by the same business process for all

countries, but the works councils approval step can be configured so that it is

only a mandatory step for German offices.

Figure 3. Configurable business processes.

Reporting framework.

The reporting framework in Workday is designed to report on information

located in Workday. Reporting is natively built into the Workday application

using an object-oriented data model that allows drill-down capabilities and

reporting from multiple dimensions. Reports are available on any device,

and can be quickly and easily shared.

Workday delivers over 2,500 standard reports for Workday Human Capital

Management, Workday Payroll, and Workday Time Tracking. These reports—for

example, hires and terminations by quarter, turnover summary, headcount and

FTE by month, part-time workers, and gender equality—are designed as a

baseline and can be leveraged to address common HCM reporting needs,

and customers can build an unlimited number of reports from them.

The reporting framework uses our powerful security framework, enabling users

to drill down into a report but only to the level of detail appropriate to their role.

For example, to comply with internal privacy policies, it is possible to limit the

display of detailed data and to only display aggregated values depending on

the location and hierarchical level of the person using the report.

Another example is the payroll compliance dashboard that provides transparency

into changes in regulations and the number of potential employees impacted,

as well as a link to the actual rulings that impacted the change.

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Figure 4. Payroll compliance dashboard.

Localization framework.

The localization framework allows customers to control which attributes are

available and visible depending on the country and territory of the employee.

For example, in some jurisdictions, customers may be legally prohibited from or

required to collect certain information from workers. In such cases, the localization

framework allows them to configure these attributes accordingly—to be hidden

or required as necessary. Customers can also create or modify country-specific

values; for example, drop-down values for ethnicity, contract types, and more.

Workday uses the employee’s geographic location to determine what type

of information should and should not be collected from them. In such cases,

Workday provides the option to hide fields from or show fields to certain users,

or require users to submit information for certain fields. Customers can set

their hide, show, and require field settings at the functional area level, with

granular rules for each localized field. For example, the “date of birth” field

can be voluntarily tracked in a number of countries and required in others,

with the ability to easily change the settings for the field or deactivate it.

Data scrambler framework.

The data scrambler framework enables customers to irreversibly replace

selected fields with randomly generated values in a Workday implementation

tenant using a fast, supported, and repeatable method. This scrambled data

can be used to test and train using production-quality data while hiding

sensitive people data.

Purging framework.

In support of data protection laws, including the General Data Protection

Regulation (GDPR) as well as data retention requirements, our purging

framework enables customers to purge various data types for terminees,

active workers, former workers, candidates, and job applications. Customers

can easily create purge plans that are tailored to their specific business

needs to meet compliance requirements.

“As for GDPR, it’s given us peace of mind, but we know there’s more to compliance. There’s a lot of manual work and process work needed as well. But we now have a foundation to being compliant with employee data, to manage information about our people, globally, in a professional way. And as we continue to grow globally, there’s an increased need for sharing people data across borders—something that can be very hard to do without a foundation like this.

Jacob Kjeldgaard Olsen Director of Strategy Velux

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Customer resources. Global experts.

Supporting compliance globally requires cultivating a network of legal subject

matter experts with the right level of insight into the multifaceted aspects of

compliance—from local rules to vertical industry regulations to nation-specific

compliance schemes. At Workday, that expertise starts with our people. The

product managers of our Product Development organization work around the

globe, spanning North America, Europe, and Asia.

These product managers, supported by legal advisers embedded with the

product teams, form an internal network of subject matter experts across

a host of regulatory issues and prioritize staying informed by way of an

overlapping web of practices and resources. They proactively track legal

updates and partner with a community of global legal counsel for local subject

matter expertise. This supports our efforts to develop and maintain product

functionality that meets our customers’ needs.

International monitoring.

Workday customers have access to critical information from monitoring

services and direct engagement with consultants and legal experts for select

countries. We conveniently route emerging information to our customers

through Workday Community so customers can spend less time researching

legislative changes.

Industry resources.

Our industry resources include access to international, professional, and

industry organizations’ publications and news alerts. We also receive input from

industry analysts and design partner groups for the latest compliance intel.

Our customer community.

Workday has a strong and growing presence across the globe. Over 2,000 of

our customers are headquartered in Europe, and more than 50% of the Fortune

500 have selected Workday to run their businesses.

Since all of our customers are on the same version of the software, Workday is

able to roll out compliance updates to all customers at once, making it easier

to keep pace with evolving regulatory requirements. Customers can attend

Workday Rising and Workday Rising Europe, our annual user conferences that

offer keynotes, engaging sessions, peer networking opportunities, and much

more. Knowing every customer is on the same version of Workday empowers

our customers to collaborate with each other, share solutions and reports,

and support one another no matter where they are located around the world.

“From a compliance perspective, we’re delighted to have an auditable record and accurate information that we can provide in real time.

Lisa Kelly-Croswell CHRO Boston Medical Center Corporation

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Conclusion Organizations face a range of compliance obligations, and we partner closely with

our customers to provide features and functionality to support them in meeting

those obligations. We consider many factors such as business impact, industry

nuances, and legal implications to ensure we provide our customers with

the right solutions, data, and capabilities to help maintain global compliance.

To learn more, please visit Workday.

Appendix. Workday language localizations:

Arabic German Romanian

Bulgarian Greek Russian

Chinese (Simplified) Hebrew Serbian

Chinese (Traditional) Hungarian Slovak

Croatian Indonesian Slovenian

Czech Italian Spanish

Danish Japanese Swedish

Dutch Korean Thai

English Latvian Turkish

Estonian Malay Ukranian

Finnish Norwegian Vietnamese

French (Canadian) Polish

French (Continental) Portuguese (Brazilian)

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