HR And Payroll Outsourcing in 2022
Payroll outsourcing entails handing over all or most of your payroll management to payroll outsourcing services. The payroll software you select will integrate with your current business architecture, including your HR department, and provide services each pay cycle. The availability of cloud computing and a number of software applications has significantly improved the services that managed payroll services may deliver to their customers.
Did You Know? According to industry research, the worldwide payroll outsourcing market would increase at an annualised pace of about 6% between 2017 and 2021.
PRINCIPLE POINTS:
1. Payroll functions are typically outsourced to save money and time when dealing with financial duties related to payroll.
2. Hiring outsourced payroll providers to handle payroll activities eliminates the need to hire and train a big in-house payroll staff, purchase proper payroll software, and stay current on difficult tax requirements.
3. HR and payroll outsourcing benefits all types of businesses, whether they have a large payroll, a mid-range workforce, or a small payroll.
How Often Payroll Timeline Is Managed In Businesses
Current Employment Statistics has been providing annual length-of-pay-period information in response to interests of the public in how frequently businesses pay their employees.
Issues At Hand: Client’s Story
Our client’s mother company is based outside of Bangladesh. They have their liaison branches here in Dhaka but they do not have enough qualified workforce to maintain their standard. They have tried hiring payroll outsourcing services before but they faced so many problems. In this section we will discuss those issues:
Cost: Payroll outsourcing incurred additional charges, depending on the additional services they required.
Basic payroll outsourcing will cost you around $200-$250 per employee per year.
Paycheck Delivery: Obtaining the necessary information for processing payroll by the cutoff times was a common payroll difficulty. This, in turn, had an impact on payroll timeliness and when staff receive their paychecks.
System Integration: Our client's systems didn't work with their outsourced payroll provider's platform
Data Security: Our customer was previously concerned about entrusting sensitive employee information to their payroll outsourcing services supplier.
Vendor Stability: Their managed payroll services provider didn't have sufficient reserves to handle the processing period's total cash flow.
Let’s see how difficult it would be to meet financial obligations if paychecks were delayed according to a 2021 survey from service holders:
Solutions We Provided
We offered our client the DIY solution which included the client taking care of employee maintenance, payroll entry and report production. This helped our client to reduce their payroll outsourcing cost by 50%.
We provided paperless payroll outsourcing solutions like direct deposit and pay cards, which made payments more immediate and eliminated late fees.
All our platforms are cloud-based and plug-n-play. So our system integrated with our client’s system easily.
We have a really good reputation in the HR and payroll outsourcing industry so the client was assured with their data security.
Bottom Line
The workforce of today is evolving. However, paying employees, freelance workers, and independent contractors is still an important component of the puzzle. Payroll outsourcing trends are important to understand since they might put your firm behind the curve and expose you to legal risk. For your small business, standardising your procedures internally or working with managed payroll services solutions like us can be easier and more cost-effective.
