On any other given day, a payroll outsourcing proposal would have meant countless physical meetings, client demos, contract-signing and a good deal of handshakes. Perhaps not anymore. At least, not anytime in the near future. The world of work is transitioning to the virtual and so is, payroll.
Industries badly hit by the pandemic are finding it tougher to maintain payroll in-house and are leveraging support from outsourcing companies to reduce overheads as well as to get their HR functions streamlined. They are also looking at timely financial reporting so that they know how much is spent in salaries and other expenses during this economically-tight phase.
In the wake of Covid-19, some companies are directly calling in, requesting for information documents and demos without demanding a physical meet up or a site visit. In the recent months alone, cost-cutting measures in many sectors like construction, logistics and even foreign consultancies in Malaysia have visibly increased as companies scout for affordably-priced payroll solutions.
Walking Clients Through the Virtual Transition
Clients begin by elaborating their requirement which often differs with industry-type. As a payroll outsourcing company, we help them draft a ‘Request For Information’ document that helps us customise payroll for them. Following this is a system demo where clients are familiarised with cloud solutions such as payslips, claims and leaves.
Prior to drafting the proposal for payroll outsourcing, we encourage clients to ask questions centering data migration, data privacy, security and fees. Once the proposal is signed, a series of virtual meetings help decide the pay cycle and type of payroll modules opted for. There are two types of payroll modules: Core modules which include Human Resource Information System, Payroll, Employee Self Service and MSS and Optional modules, which include modules like Leaves, Claims, Time Attendance and Mobile apps.
Most of these intense discussions used to happen over two months and over countless face-to-face meetings. The Covid-19 outbreak and the consequent lock down, the pattern has taken a drastic twist and gone completely virtual with either side meeting online just a few times to round up key concerns.
Generating Live Payroll Without Worries
After giving clients the agenda and setting project timelines, we take some time to review current tax policies and regulatory laws. Once data is collected and migrated to the system, we do a parallel run to tweak errors and ensure compliance. Usually payroll goes live within 90 days, but in specific cases, it is also done in 30 to 60 days, depending on the urgency.
Running a virtual implementation is like doing an audit in itself, tracking inaccuracies and introducing best practices to those unfamiliar with payroll outsourcing. As remote work and outsourcing spurs concerns over safety and data privacy every day, payroll outsourcing firms need to remain at the forefront of compliance.
As we are moving into ISO/IEC 27001 practice, we are compliant to undertake information security management system (ISMS) according to international regulations. This certification insulates financial information and employee data details from online breach and theft. Most of the clients we serve are themselves ISO27001-complaint and this gives them one more reason to choose a payroll partner also compliant in the same domain.
A Viable Solution During Covid-19
Companies looking to cut costs this pandemic can depend on payroll outsourcing to ensure consistency in salary rollouts and statutory filings so they are not missed even in this period. Outsourcing with the right partner always has its own advantages. A local partner compliant in global standards and offering affordable rates can be a sure shot way of protecting your business in bad times.
