What Payroll Processing Really Entails
Payroll processing is the systematic method used by businesses to calculate and distribute employee compensation. At its core, the process includes:
- Tracking work hours or outputs
- Calculating gross pay
- Applying deductions such as taxes, insurance, and benefits
- Determining net pay
- Making payments via direct deposit or other channels
- Filing taxes and regulatory paperwork
Although this may sound straightforward, the reality is often far more complex. Different employment types, payment structures, and tax jurisdictions multiply the number of variables that payroll teams must handle.
Importance of Accuracy in Payroll
Mistakes in payroll can have ripple effects across the organization. Underpayments can lead to employee dissatisfaction and even legal challenges. Overpayments can damage the company’s financial planning and require complex recovery efforts.
Inaccuracies also affect compliance. Regulatory penalties, audits, and reputational harm can result from tax errors or failure to meet mandatory reporting obligations. Research shows that over half of businesses in certain markets have admitted to making payroll errors within a recent two-year period, highlighting the importance of system reliability and oversight.
Components of Payroll Processing
Understanding the building blocks of payroll is essential for developing a streamlined system. The core components typically fall into three categories:
Pre-Payroll Activities
The foundation of payroll processing begins before a single dollar is calculated or paid. Pre-payroll activities set the framework for consistent, compliant, and efficient execution.
- Defining payroll policies: These include pay frequency, overtime eligibility, leave accrual, bonus structures, and benefits. Policies should align with both company culture and local labor laws.
- Gathering inputs: Data must be collected from multiple internal systems, such as HR software, time-tracking tools, and financial applications. This includes hours worked, vacation time, bonuses, reimbursements, and changes in salary or employment status.
Actual Payroll Calculation
Once all inputs are gathered and verified, the actual computation begins.
- Gross pay calculation: Based on hours worked or fixed salaries.
- Deductions: These include taxes, health insurance, retirement contributions, and other mandatory or voluntary withholdings.
- Net pay determination: The amount the employee receives after all deductions.
The calculation process often requires reconciliation to ensure there are no discrepancies in inputs. Reviewing exceptions or outliers is an essential step before finalizing payroll.
Post-Payroll Activities
Once employees are paid, businesses must fulfill several other obligations to remain compliant and financially accurate.
- Payment disbursement: Direct deposit is the most common method, but other options may apply depending on location and employee preference.
- Tax filing and compliance: Businesses must submit payroll taxes to the appropriate authorities and report income information.
- Accounting entries: Payroll expenses must be accurately recorded in the company’s accounting system.
- Reporting: Generating reports for internal use, audits, or financial forecasting is critical. These may include summaries of compensation, tax liabilities, and department-level costs.
Manual Versus Automated Payroll Systems
Companies typically start with manual payroll systems, especially during the early stages of operation. Spreadsheets are commonly used to track employee data and calculate pay. However, this method is highly susceptible to errors and inefficiencies, especially as the team grows.
Automation allows payroll data to flow seamlessly from time tracking to wage calculation, banking, and reporting. Modern systems reduce administrative workload and improve accuracy. They also provide better visibility into payroll expenses and help maintain compliance with local and international regulations.
Role of Business Accounts in Payroll
A business account is not merely a payment tool; it is a critical component of the payroll ecosystem. Integration between payroll systems and business banking allows companies to:
- Verify available funds before disbursement
- Schedule payments
- Automate bank reconciliation
- Minimize human intervention
By connecting payroll software directly to the company’s financial infrastructure, businesses can reduce the chance of payment delays or mismatches.
Time and Attendance Management
Accurate tracking of employee time is essential for calculating pay, especially for hourly workers. Even salaried employees often accrue bonuses, overtime, or leave, all of which affect payroll.
Systems used may include:
- Biometric attendance systems
- Mobile apps for clocking in and out
- Integration with project management tools
The collected data feeds directly into payroll, allowing for seamless calculation. Inaccuracies in timekeeping can result in payroll errors and may lead to legal disputes.
Payroll and Legal Compliance
Payroll must align with a wide range of regulations, and these vary significantly between countries and sometimes even regions. Legal compliance includes:
- Withholding the correct amount of income tax
- Contributing to social security or pension programs
- Applying local labor laws regarding overtime, minimum wage, and leave
- Issuing pay slips and year-end tax documents
Companies that fail to comply may face fines, audits, or lawsuits. Therefore, maintaining up-to-date knowledge of legal requirements is essential. This often requires legal counsel or partnerships with local HR experts.
Multi-Jurisdiction Payroll Challenges
As companies expand across borders, payroll complexity increases. Employers must manage varying:
- Tax regimes
- Social benefit contributions
- Employment classifications
- Currency conversions
For example, while one country may require monthly tax submissions, another may expect quarterly filings. Similarly, bonus structures considered standard in one region may be tightly regulated elsewhere. In such environments, payroll must be adaptable. Rigid systems or a one-size-fits-all approach often leads to errors or compliance gaps.
Importance of Integrated HR and Finance Systems
An integrated approach between HR and finance departments creates a more fluid payroll process. Human resource platforms manage hiring, onboarding, attendance, and performance data, all of which influence payroll calculations.
Finance platforms handle expense approvals, reimbursements, and fund disbursement. When these systems communicate directly, businesses benefit from:
- Faster payroll cycles
- Fewer manual interventions
- Improved transparency and traceability
- Real-time reporting and forecasting
Such integration not only reduces processing time but also supports strategic financial planning by offering clear insights into labor costs.
Role of Reporting and Forecasting in Payroll
Payroll reports are not just a compliance tool; they are vital for strategic decision-making. Standard reports may include:
- Department-wise salary costs
- Tax liability summaries
- Leave encashment tracking
- Year-to-date salary records
Forecasting payroll expenses helps businesses allocate budgets more effectively and predict future hiring costs. It also aids in preparing for compliance deadlines and financial audits.
Automated payroll platforms often include built-in reporting tools that generate these insights with minimal manual effort. Real-time access to these reports allows managers to identify trends, control costs, and address issues proactively.
Core Considerations
Payroll processing is a multi-faceted operation that spans financial management, legal compliance, and employee engagement. Getting it right is critical to a company’s success, especially as the organization scales and enters new markets.
Businesses must focus on building a foundation that can evolve. From defining clear payroll policies to integrating modern technology and ensuring regulatory compliance, each step plays a crucial role in creating a reliable and efficient payroll process.
Designing a Scalable Global Payroll Strategy
Expanding a business internationally introduces a multitude of new responsibilities. One of the most critical functions to manage across borders is payroll. A scalable global payroll strategy is essential to support sustainable growth, meet compliance obligations, and deliver timely, accurate compensation to a diverse, global workforce. We explored how to structure and implement a payroll system that meets the demands of international expansion, while maintaining operational efficiency and employee satisfaction.
Understanding Global Payroll Complexity
Managing payroll in a single jurisdiction is already a complex process. With international employees, that complexity increases dramatically. Each country has its own tax laws, social security systems, labor regulations, reporting requirements, and cultural expectations regarding pay frequency and benefits.
International payroll also introduces additional considerations such as:
- Managing multiple currencies and exchange rate fluctuations
- Ensuring legal compliance across jurisdictions
- Handling payroll-related data privacy concerns
- Coordinating time zones for scheduling payroll processing and approvals
- Aligning diverse compensation structures across geographies
To navigate these challenges effectively, businesses must adopt a structured approach to payroll planning and choose technology and service models that support automation, integration, and localization.
Setting Up International Payroll Infrastructure
A foundational step in creating a global payroll strategy is designing the right infrastructure. This includes determining how to organize payroll operations—whether centralized, decentralized, or hybrid—and ensuring that the structure is aligned with your organization’s size, scope, and growth trajectory.
Centralized vs. Decentralized Payroll Models
A centralized model consolidates payroll processing under a single global team. This setup provides consistency, standardized processes, and consolidated reporting. It also makes it easier to apply uniform governance policies. However, it may lack local expertise and agility.
A decentralized model delegates payroll processing to local offices or country-specific providers. This setup ensures compliance with local regulations and cultural expectations but can result in inconsistent processes and reporting, increasing the risk of errors.
A hybrid model combines the benefits of both: core payroll policies are set globally, while execution and compliance are managed locally. This model works well for businesses with regional hubs or a presence in high-complexity markets.
Key Infrastructure Components
- Payroll software or platform with multi-currency and multilingual support
- Local or regional payroll providers in complex jurisdictions
- Integrated HR systems to sync employee data, time tracking, and compensation changes
- Secure data storage solutions compliant with international data privacy laws (such as GDPR)
Creating Localized Payroll Policies
Standardizing payroll at the global level does not mean ignoring local laws or customs. Businesses must create localized payroll policies that account for each country’s specific employment regulations, taxation systems, and labor market expectations.
Key Considerations in Policy Localization
- Statutory deductions: Tax withholding rules vary widely by country. In some markets, taxes are progressive; in others, flat. Local legislation may mandate pension contributions, unemployment insurance, and other deductions.
- Pay schedules: While monthly pay is common in many countries, others (like the US or India) may require biweekly or semimonthly pay cycles. Noncompliance with frequency laws can lead to penalties.
- Overtime and benefits: Mandatory benefits such as holiday pay, bonuses, or paid time off differ significantly. Local payroll policies must reflect legal minimums.
- End-of-service obligations: Severance pay, gratuity, or final settlement rules must be incorporated into termination processes.
Properly localized policies improve compliance, reduce the risk of audits and fines, and ensure that employees feel fairly treated according to local norms.
Aligning Payroll With Global HR and Finance Systems
Payroll does not exist in a silo. It intersects with human resources, finance, compliance, and operations. Integrating payroll with broader enterprise systems is vital for improving accuracy, streamlining processes, and enhancing reporting.
HRIS and Payroll Integration
Integrating Human Resource Information Systems (HRIS) with payroll ensures that data such as new hires, terminations, promotions, and attendance are automatically reflected in payroll calculations. This reduces manual data entry and minimizes the risk of discrepancies.
Finance and Payroll Synchronization
Payroll impacts budgeting, forecasting, and financial reporting. Synchronizing payroll with accounting systems helps automate journal entries, track departmental costs, and simplify reconciliation. Integration also supports cash flow management by providing real-time visibility into payroll liabilities.
Compliance and Auditing
Automated systems help maintain an audit trail for all payroll activities. This is essential for compliance with financial regulations, tax laws, and internal policies. It also simplifies preparation for internal and external audits.
Selecting the Right Payroll Service Model
When building a global payroll strategy, companies must decide whether to manage payroll in-house, partner with local providers, or use global payroll outsourcing services. Each model has its advantages and trade-offs.
In-House Payroll
Managing payroll internally offers full control, but it requires deep knowledge of local laws and significant investment in systems and staff. This model suits companies with mature HR and finance departments and a limited number of countries.
Local Payroll Providers
Partnering with country-specific providers ensures localized expertise and compliance. However, it can result in a fragmented system with multiple vendors, inconsistent processes, and limited scalability.
Global Payroll Providers
A single global payroll partner offers consolidated operations, standardized workflows, and unified reporting. These providers often manage local compliance through in-country partners. This model is ideal for businesses operating in multiple regions and looking for a scalable, efficient solution.
Building Payroll Governance and Controls
A robust governance framework is necessary to ensure that payroll operations are secure, compliant, and efficient. Governance encompasses everything from process documentation and access controls to internal audits and vendor management.
Key Governance Practices
- Maintain a global payroll policy that outlines standards and responsibilities
- Document local payroll procedures to ensure consistency and continuity
- Establish internal controls for data access, approval workflows, and payroll changes
- Schedule regular audits and reconciliations to detect errors or fraud
- Review vendor performance and compliance certifications
Strong governance minimizes operational risk and enhances the integrity of payroll operations.
Managing Multi-Currency Payroll and FX Risk
One of the most complex aspects of international payroll is managing payments across currencies. Currency volatility can affect the amount employees receive and inflate your costs.
Best Practices for Multi-Currency Payroll
- Pay employees in their local currency to comply with local laws and meet employee expectations
- Use tools to manage exchange rate fluctuations and lock in rates for predictable budgeting
- Choose payment platforms that support multi-currency balances and minimize conversion fees
Effective multi-currency management enhances payroll predictability and reduces financial risk.
Ensuring Data Privacy and Cybersecurity in Payroll
Payroll data includes sensitive information such as employee identification numbers, salaries, and bank details. Protecting this data is not only a legal requirement—it’s critical to maintaining employee trust.
Key Areas of Data Protection
- Use secure encryption protocols for data in transit and at rest
- Restrict system access based on user roles and responsibilities
- Conduct regular security audits and penetration tests
- Comply with global and local data privacy laws, including GDPR, CCPA, and others
- Train employees on safe data handling practices
Implementing a comprehensive cybersecurity framework minimizes the risk of breaches and regulatory penalties.
Supporting Global Mobility and Remote Workers
As businesses embrace flexible work arrangements, payroll teams must account for remote employees, digital nomads, and mobile talent. These arrangements complicate tax obligations, social security contributions, and compliance.
Strategies for Managing Mobile Workforces
- Track employee work locations to determine tax residency and applicable laws
- Review tax treaties to avoid double taxation or missed contributions
- Consider employer-of-record solutions for hiring remote workers in new countries
- Establish clear remote work policies that outline payroll, benefits, and compliance guidelines
A proactive approach to global mobility ensures consistent compensation and regulatory alignment.
Creating a Roadmap for Payroll Scalability
A successful global payroll strategy evolves with your business. Establishing a roadmap for growth ensures that your payroll infrastructure can adapt to changing demands, whether it’s entering new markets, acquiring companies, or hiring rapidly.
Elements of a Scalable Payroll Roadmap
- Identify target markets and assess payroll complexity in each
- Map out key technology investments required for automation and integration
- Define a vendor strategy that supports multi-country scalability
- Build internal capabilities through training and process documentation
- Regularly review and update policies and systems to reflect changes in business needs or legislation
Planning for scale helps organizations stay agile and responsive as they grow internationally.
Fostering Employee Confidence in Payroll Processes
An often overlooked aspect of global payroll is its impact on employee morale. Delayed or incorrect payments can erode trust and hinder engagement. A reliable, transparent payroll system enhances the employee experience and contributes to retention.
Ways to Build Employee Trust
- Ensure timely and accurate salary disbursement
- Offer self-service portals for payslip access and tax documentation
- Provide support channels for payroll-related inquiries
- Communicate clearly about compensation structures, deductions, and timelines
When employees feel confident in payroll processes, they are more likely to focus on their roles and contribute to company success.
Evolving Role of Payroll in Business Strategy
Traditionally seen as a back-office function, payroll is now a critical component of strategic business operations. As companies expand globally and adopt more agile working models, payroll has emerged as a key area influencing employee satisfaction, compliance, and financial forecasting. Businesses increasingly recognize payroll as more than a transactional process—it’s a driver of workforce experience and a vital element in managing global expansion.
Forward-thinking organizations are embedding payroll into their broader business strategy. This shift includes aligning compensation frameworks with talent acquisition goals, integrating payroll insights into workforce planning, and leveraging payroll data to inform executive decision-making. As payroll becomes more central to organizational performance, it demands innovative tools and techniques to keep pace.
Rise of Global and Remote Workforces
The widespread adoption of remote and hybrid work arrangements has significantly impacted payroll processing. Companies now regularly hire employees, freelancers, and contractors across multiple countries and jurisdictions. This geographic spread presents a complex challenge: paying employees accurately and compliantly in various currencies, tax systems, and labor environments.
Managing payroll across borders requires detailed knowledge of local employment laws, tax rates, statutory contributions, and employee benefit requirements. For example, workers in one country may be entitled to different overtime rates, leave accruals, or social security deductions compared to another. Even small missteps can lead to penalties, reputational harm, or legal disputes.
To navigate this complexity, businesses are adopting centralized systems that support international payroll and are designed to scale with workforce diversity. These platforms simplify cross-border payments, track compliance obligations, and offer consolidated payroll reporting across all countries in which a business operates.
Integration of Payroll with HR, Finance, and Compliance Systems
One of the most significant shifts in payroll processing is its integration with broader organizational systems. Historically, payroll functioned as a standalone unit, disconnected from HR and finance departments. Today, successful businesses integrate payroll with human resource information systems (HRIS), enterprise resource planning (ERP) software, and compliance platforms to create a seamless flow of information.
This integration offers a range of benefits. Employee data from onboarding tools automatically updates payroll records. Finance teams gain real-time visibility into payroll expenses and liabilities. Legal and compliance functions can access statutory filings and audit trails with minimal manual intervention. The outcome is a more efficient, accurate, and agile payroll process that reflects the realities of a fast-moving business landscape.
Payroll Automation: Reducing Errors and Enhancing Efficiency
Automation is reshaping payroll management by minimizing human error, reducing administrative burden, and accelerating cycle times. Modern payroll systems can automatically calculate gross-to-net pay, apply deductions, and process tax submissions without manual input. Automated systems reduce the need for repetitive tasks and lower the risk of mistakes that might otherwise lead to underpayments, overpayments, or tax discrepancies.
Automation is especially valuable for companies with large or globally dispersed teams. With automated calculations and workflows, payroll teams can manage greater volumes of employee data without scaling labor costs. In turn, this allows payroll professionals to focus on higher-value tasks such as audit preparation, payroll strategy development, and workforce insights.
Another advantage of automation is the ability to run payroll simulations. Businesses can model different pay scenarios, tax implications, or policy changes to forecast financial impacts before they’re implemented. This strategic capability helps finance leaders plan more accurately and make informed decisions around compensation planning.
Regulatory Compliance in a Multinational Environment
Complying with local, national, and international payroll regulations is among the most critical and challenging aspects of payroll processing. Regulations can vary not just from country to country, but also within regions or states. These may cover income taxes, labor codes, benefits, and employee classifications. Additionally, frequent regulatory changes require payroll teams to stay continually updated to avoid compliance risks.
In a global environment, payroll must account for rules around data protection, anti-money laundering (AML), and labor reporting obligations. For example, European companies must comply with GDPR when processing payroll data. U.S. employers need to manage filings with state and federal tax agencies. Failure to comply in any jurisdiction can result in audits, penalties, or restrictions on business operations.
To manage this, organizations are increasingly adopting compliance-first payroll platforms with built-in rule engines that reflect real-time regulatory requirements. These systems notify payroll teams about updates and ensure payroll runs are automatically adjusted to reflect new laws. Moreover, audit trails and reporting features make it easier to demonstrate compliance during official inspections.
Leveraging Payroll Analytics for Strategic Insights
Payroll systems now serve as rich sources of workforce data that can support decision-making across departments. Payroll analytics tools extract and visualize data points such as labor costs, compensation trends, tax liabilities, and workforce distribution. These insights can improve planning, budgeting, and performance monitoring.
For example, businesses can analyze cost per employee across locations, identify departments with high overtime rates, or monitor benefit utilization. This information is not only valuable for finance and HR but can also inform executive leadership on strategic hiring, role restructuring, and cost-saving opportunities.
In addition to internal uses, payroll analytics supports external reporting requirements. Regulatory bodies, auditors, and investors often require detailed payroll breakdowns as part of financial reviews. Integrated reporting tools reduce the time needed to gather this data and ensure its accuracy.
Cybersecurity and Data Privacy in Payroll Systems
Given the sensitive nature of payroll data—including social security numbers, bank details, tax IDs, and salary information—cybersecurity is a major concern. Payroll systems are prime targets for cyberattacks, particularly phishing, ransomware, and identity theft schemes. As payroll moves to cloud-based platforms and integrates with other business systems, the risk surface expands.
To protect payroll data, businesses must implement strong access controls, data encryption, and security protocols. Two-factor authentication, secure APIs, and regular penetration testing help safeguard data integrity. Additionally, companies must adhere to privacy laws such as GDPR, HIPAA, or other regional data protection standards that dictate how employee information must be stored and transmitted.
Training payroll staff on data handling best practices is also crucial. Employees must understand how to recognize phishing attempts, use secure communication channels, and report suspicious activity. As threats evolve, ongoing investment in cybersecurity infrastructure and training remains essential.
Flexible Payment Methods and Employee Expectations
Modern employees expect payroll flexibility that mirrors their broader consumer experience. This includes faster payment options, real-time salary access, and user-friendly self-service portals. Traditional monthly or biweekly cycles are giving way to more dynamic models such as on-demand pay, where employees can access earned wages before payday.
Providing flexible pay options can improve employee satisfaction and retention, particularly in industries with high turnover or hourly workforces. It also demonstrates a commitment to employee financial wellness, helping workers avoid payday loans or financial stress. As competition for talent increases, flexible payroll offerings can become a differentiator in employer branding.
Payroll platforms are evolving to support multiple disbursement methods including direct deposits, mobile wallets, prepaid debit cards, and digital payment networks. Multi-currency capabilities are also essential for companies employing staff across borders. The ability to pay workers in their preferred currency without incurring high conversion fees is increasingly seen as a standard offering rather than a luxury.
Cloud-Based Payroll and Scalability
Cloud-based payroll systems are replacing legacy on-premise software due to their scalability, accessibility, and lower maintenance costs. These systems enable remote access to payroll data, support real-time updates, and facilitate collaboration across departments and regions. Cloud-based platforms also simplify system upgrades and maintenance, ensuring that businesses always use the latest technology.
For growing companies, scalability is a key advantage. Cloud platforms can accommodate increases in employee count, expand to new geographies, and add new functionalities without significant infrastructure changes. This makes them particularly suited for startups, scale-ups, and global enterprises.
Furthermore, cloud platforms provide built-in backups, disaster recovery options, and redundant data storage, improving resilience. They also offer better support for integration with other cloud-based tools used across the organization, such as accounting, time tracking, and human resources applications.
Sustainability and Payroll’s Role in ESG Reporting
Environmental, social, and governance (ESG) factors are playing an increasing role in corporate strategy and investor relations. Payroll data supports ESG reporting by capturing metrics related to fair pay, diversity, equity, and inclusion (DEI), employee benefits, and labor practices. Transparent payroll practices are essential in demonstrating social responsibility and compliance with ethical standards.
For instance, payroll systems can help identify wage gaps, track hiring patterns, and report on employee welfare initiatives. This information feeds into ESG disclosures required by regulators, shareholders, or sustainability rating agencies. As ESG reporting becomes more standardized and scrutinized, businesses must ensure that payroll systems can generate accurate, auditable data on workforce dynamics.
In addition, digital payroll processes reduce reliance on paper-based systems, contributing to environmental sustainability. Cloud platforms minimize energy usage by reducing the need for physical infrastructure and supporting remote work models.
The Growing Need for Specialized Payroll Talent
As payroll becomes more complex and integrated with business strategy, the demand for skilled payroll professionals is growing. Today’s payroll teams must be adept not only in calculations and compliance but also in technology, analytics, and cross-functional collaboration. They play a vital role in digital transformation initiatives, systems implementation, and business continuity planning.
To meet this demand, organizations are investing in payroll training and professional development programs. Certification courses, industry conferences, and peer networks help payroll professionals stay current on evolving regulations and best practices. Additionally, the emergence of new job roles—such as payroll data analyst or global payroll strategist—highlights the increasing specialization of the field.
Companies that prioritize payroll expertise can avoid costly errors, improve operational efficiency, and gain a strategic advantage. The future of payroll lies not just in software and systems, but in the skilled professionals who manage them effectively.
Conclusion
Payroll processing is a foundational pillar of business operations that directly impacts employee satisfaction, legal compliance, and financial accuracy. As explored throughout this series, it is far more than a routine task—it is a strategic function that requires precision, adaptability, and modern infrastructure to handle both local and international complexities.
We established how payroll involves tracking work hours, calculating gross and net pay, managing deductions, and ensuring timely disbursement of wages—all while complying with legal and financial obligations. We discussed the consequences of errors, including delayed payments and compliance risks, and highlighted the growing trend toward outsourcing payroll functions as companies scale globally.
We delved into the mechanisms of global payroll management, where varying tax laws, labor standards, and currencies demand greater flexibility. We examined the challenges of processing payroll across jurisdictions and the importance of implementing scalable systems. By embracing integration with HR platforms and financial software, businesses can streamline operations and reduce the margin for error while improving visibility and oversight.
We outlined strategies for enhancing payroll efficiency, from automating tax calculations and reporting to centralizing systems that manage compliance in different regions. We emphasized how aligning payroll with strategic business objectives can help organizations stay agile in a competitive global market. Key practices such as establishing clear pay structures, leveraging multi-currency accounts, and ensuring continuous regulatory updates all play a crucial role in long-term success.
As businesses continue to expand across borders, the ability to run seamless, compliant, and efficient payroll operations becomes a competitive advantage rather than a back-office function. Companies that prioritize payroll modernization not only improve employee trust and engagement but also gain the operational resilience needed to grow with confidence in any market.
Whether handled in-house or supported by third-party platforms, payroll processing must evolve with the pace of global commerce—integrated, automated, and aligned with business goals. In doing so, businesses can transform payroll from a source of complexity into a catalyst for growth.
