Companies struggling under the weight of monthly payroll, compliance and periodical HR registry probably have no time for core HR tasks. In fact, if you spend 80 hours a year sorting out taxes, that’s two-full weeks spent focusing ONLY ON TAXES!
HR personnel have always been wary of outsourcing work in the fear that it may, one day, overtake their jobs. Having worked with clients from numerous industries over the last 17 years, I have come to understand that post outsourcing, companies never let go of their HR departments. Instead, they have shown a wider interest in steering HR departments to focus on talent retention and engage in employee performance improvement.
Let me share with you the story of a well-known global FMCG company that approached us in 2009. Their payroll executive had quit in short notice and this created a furore, especially during the pay period. When the company approached us, they said all they desired was the problem to disappear overnight. Such was the urgency.
When Propay Partners stepped in, we noticed that their payroll system was in shambles. Far from being up-to-date, the process did not deliver on time, as it should have. The client requested for an e-payroll system to streamline data so that it was easier for the staff to access it.
During restructuring, we were able to spot errors in payroll and highlight them to the client. We made sure all details were accurate and up-to-date. We also put in a cloud-based payroll system and an online platform which helped quicken the payroll implementation from 4 months to 2 months!
Allowing us to step in allowed the HR team the much required respite and access to latest cloud technology. Once payroll was optimised, we noticed their HR team slowly shifting focus from payroll to operations development and people support. They also seemed to invest more time in employee growth and training. And since the company was just starting operations in ASEAN, this shift of focus was necessary to achieve their business goals in their new-found market.
While most companies do not see payroll as a critical function, if done poorly, it can clog the system and significantly affect productivity. Issues like these will have a direct bearing on your business and its subsequent growth.
Also with the geographical diversification of businesses, managing HR has become a complex affair. A large employee size across departments or destinations can be a challenge, considering management of payroll, insurance, mobility and compliance. Today, many companies seek to outsource these processes. By doing this, they can ensure a high degree of savings and stay afloat in a competitive market than lose out by taking on the burden themselves.
One of the main criteria for any HR professional is keeping abreast with ever-changing regulations. Corporations that have outsourced payroll have been able to leverage on external expertise and do away with worry.
Of late, the Business Development team at Propay Partners has been meeting up with various startups and learnt that many of them are rethinking priorities due to market competition. Many have decided to work with HR and payroll outsourcing firms as it frees up their time needed to focus on business.
Having an HR and payroll outsourcing partner can give you peace of mind, knowing that they are keeping up with the latest regulations, providing information to you in a timely manner and helping you reduce both costs and liability.
Outsourcing is the most pragmatic and innovative solution that companies can rely on to stay ahead of technology as well as excel in business.
