Announcing People & Payroll Member Perks Program + Technology Trends with Eynat Guez
In celebration of the launch of our new member perks program–where we partner with organizations to offer members exclusive deals on new HR technologies–we also spoke with our founder, Eynat Guez, about her thoughts on some pressing issues within HR Tech.
What is your perspective on the rising use of cryptocurrency? Especially, as earlier this year, El Salvador became the first country to legalize bitcoin as an official tender. How do you expect this to eventually impact technology companies and global workers?
I strongly believe that crypto will be an enormous part of life in every sector. It starts with our day-to-day interactions and commerce, then moves on to the government level, large corporations, and finally financial institutions. It is only a matter of time before the technology is widely adopted, if not universally, then in so many parts of our lives that it will be impossible to ignore.
What’s particularly interesting about crypto for employers is how it can be linked to company objectives and used as an incentive. I expect more and more companies to make it part of the overall compensation package they offer their employees. This will bring the employees into the crypto ecosystem, and even speed up the overall adoption process.
A major challenge in the digital divide globally seems to still be equity. What are the biggest challenges in offering global equity?”
If companies want to compete for top talent, they need to offer equity. If they only have a local payroll, it’s not so challenging. But when the workforce starts to cover numerous countries, it can be overwhelming. Each country has its own tax laws, securities regulations, labor laws, reporting schedule, and timetable for tax withholding.
It’s even harder when you are hiring through an EoR because the employees are not, legally speaking, your employees. They are officially working for your EoR. To get past that, a company may have to waive custodial rights from the EoR that’s working on its behalf. And that’s only the beginning. But we have solved the puzzle of offering global equity, and even when you hire through an EoR. This gives our clients a big advantage when competing for global talent. And with remote work growing more popular as the pandemic starts moving out, that competition is only intensifying.
What are some key technology components that you think can benefit most medium-sized and large-sized companies, especially given the changes we’ve seen over the last 15 months regarding remote work?
The number one thing the COVID era has taught us, from the perspective of technology, is that automation is not a luxury. It is a necessity. At the beginning of the pandemic, we saw so many companies struggle to meet their payroll obligations because their manual payroll operation was insufficient. At many companies, if just one person is missing in the process, the whole process can be disrupted. But an automated system will work under any circumstances. In a crisis, you just can’t rely on people – they might also be impacted by the crisis. But you can rely on technology – and the cloud.
During the same period, Papaya has seen the value of bringing payroll and payments into a single continuum and combining that with a state-of-the-art HRIS system. We created the first people, payroll, and payments platform that serves the all models of global employment. In the previous era, we saw companies create great tools for all aspects of global workforce management. Today, we’re bringing it all together into a single integrated platform that standardizes the formats and currencies and generates vital analytics – something that’s impossible to do with disconnected streams of data.
What is your advice to workforce leaders who are looking to begin to implement smaller changes by adding in a few contractors and potentially expanding overseas?
Working with contractors is a good idea if you have very limited and specific tasks that require very little oversight. Beyond that, I tend to discourage companies from going too far with contractors. It is so easy to run into classification problems, and governments are seriously cracking down. I’ve heard of companies being audited just because they have a significant number of contractors.
For companies that are not prepared to open entities in every country where they want to hire people, I recommend working through an employer of record. It’s pretty much like outsourcing the global hiring. The EoR handles all the workforce management for you and takes on the liability for the employees. But there is no risk of misclassification.
With the launch of People & Payroll member perks, what is the value in trying new providers (including Papaya and its partners) to utilize these newer pieces of technology?
The value is that you benefit from software solutions that address the real pain points you’re facing instead of outdated legacy systems that were not designed for the modern world. We created Papaya precisely to address the technology gap in the world of workforce management.
Papaya has the best-in-class solution for onboarding all types of employees across globe, automating the payroll process so that anyone can hire abroad with confidence, and handling the entire workforce management all in one place. In contrast, most companies still use manual systems, excel sheets, etc. One client says working with Papaya is like going from fax to email. That’s really true.
Data protection and privacy are key. How can companies ensure they are partnering with an organization with the highest ethics regarding protecting user’s information?
Naturally, you always want to work with companies that exhibit the highest ethics, but when it comes to data privacy, ethics really have nothing to do with it thanks to sweeping regulations such as the GDPR in Europe and the California Consumer Privacy Act (CCPA). It is absolutely essential that any company that handles people’s private data has a highly developed system for protecting the data. Otherwise, you face serious fines. That’s why it’s no longer a question of ethics. It’s a matter of regulation.
At Papaya, our platform ensures compliance at the highest level. The software makes sure that the data remains private. That’s another case of relying on technology over relying on people. But even when GDPR and CCPA are not at issue, there is a tremendous amount of sensitive information that needs to be processed in each payroll cycle. Our platform is a secure channel that lets people share information without exposing it to bad actors, as they would if they used email. That’s the worst way to share sensitive information, and it’s one think you will never have to worry about with the Papaya Platform.