Multi-entity HR software for UK and European businesses

Multi-entity HR involves managing HR for different legal entities within the same business group. The legal entities are typically subsidiaries or local branches of the main organisation, but they can also be distinct businesses that share the same parent company.

Some multi-entity organisations operate in just one country, while others span different regions. Handling HR for separate legal entities in different countries can also be known as multi-country HR.

Managing HR across entities and countries comes with a unique set of challenges. HR teams need to understand local laws, interpret fragmented data, and know how to tailor group-wide policies and procedures to local markets. 

Here are some common challenges that HR teams face when managing teams in different countries or legal entities, along with how the right HRIS (human resources information system) software can help:

Supporting multiple entities under one group is more complex than a single-entity setup, but the right software can ease the burden of repetitive admin and the worries that come with managing compliance.

Multi-entity HR software and employer of record (EOR) services both solve the problem of expanding your organisation, but in different ways. The software or vendor you choose depends on which model aligns with your operations:

• Multi-entity HR software: Manage your own employees across local entities and subsidiary companies

• Employer of record service: Hand over the employment and management of employees to another provider, with no need to create a local entity

If you already have local entities or subsidiary companies, you need HR software designed for multi-entity setups. If you don’t but still want to expand into other countries, you’ll need an employer of record (EOR) service — unless you want to go down the route of establishing local entities.

Not every HRIS is built for businesses with more than one legal entity. Here’s what to look for when evaluating potential HR software:

• Relevant organisational charts: Build and share an organisational map for your parent business, with the relevant local entities or subsidiaries beneath it.

• Customisable HR policies: Introduce shared group policies where it makes sense, and add custom policies and templates for each entity.

• Per-entity permissions: Allow each entity to configure access permissions by role or category, independent from the parent company.

• Automated workflows and processes: Use automation to reduce the manual admin involved with managing multi-entity HR.

• Inter-entity transfers: Move employees from one subsidiary or local entity to another, without completing a standard offboarding and re-onboarding process.

• Payroll preparation: Automatically gather accurate data and prepare it according to each entity or country’s rules and requirements.

• Integrations with local payroll providers: Send payroll data straight to local payroll providers or payroll tools.

• Consolidated group reporting: Report on activities, trends, and opportunities at a group level, as well as per entity.

• Local compliance support: Set the system up according to each entity or country’s legal requirements and internal standards.

• EU data residency: Store your data at an EU centre, to support compliance with GDPR and UK GDPR.

• Clear dashboards: See what’s happening across the group, with the ability to drill down into each entity in more detail.

• Implementation support: Go through the onboarding and data migration process with a support team that’s used to handling multi-entity organisations.

Most enterprise HR software platforms support multi-entity organisations. Here’s an overview of some of the most popular choices, based on research and user reviews:

Most multi-entity HRIS providers focus on US-based organisations with global workforces, but Personio is built for exactly what UK and European businesses need. Benefit from a system where support for the complexities of working across Europe is the default, not bolted on. 

Personio’s highlights for multi-entity businesses:

• Built in Europe, serving the UK and European organisations

• Supports multi-entity and multi-country structures

• Single source of truth for all group operations

• Payroll preparation for local providers and tools

• Workflow automation to manage processes at scale

• Consolidated group reporting

• Personio Assistant for AI-powered insights

• Compliance support for the UK and Europe

• AI transformation hub to track workforce readiness and AI adoption

HR software for global businesses

Centralise your HR data, automate everyday admin, and manage the employee lifecycle across multiple entities and locations.

Discover why 16,000 businesses choose Personio as their HRIS.

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Not all HR software can handle multi-entity setups. Basic HR software is designed for single-entity use, and lacks the features and settings most multi-entity organisations need. To manage HR at scale for multiple subsidiaries or local entities you’ll need an HRIS that supports multi-entity setups.

Multi-entity HR software gives internal HR teams the ability to manage HR for employees at local entities and subsidiary companies. Employer of record (EOR) services handle the employment and management of employees, giving organisations the option to hire and pay locally without establishing a local entity. 

The best multi-entity HR software for UK businesses is one designed for the UK and Europe, rather than one built for US and global markets. Deel, Rippling, and Workday are popular choices for enterprises with a global presence, but Personio is an ideal choice for UK businesses considering expanding further into Europe.