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As in all the activities of business support, the outsourcing payroll services is expected to be more efficient in terms of costs and provide better quality results – more for less.
The calculating salaries process is a bit more complicated because it should take into account a number of legal constraints, therefore the accuracy, compliance and risk management come into play.
Moreover, the payroll draws attention to all employees every month, from the CEO to the lowest position in the hierarchy of the organization – ensuring optimal functioning of the payment process at the end of the work month.
While other support activities benefited from technological developments, the internal payroll trend was a conservative one. The cause is the risk associated with each change that can influence or even stop payments to employees. As a result, the payroll technology within an organization may be outdated and complex. Simultaneously, these organizations that preferred the old safety systems in the detriment of technological innovation just lose the opportunity to get what is most important from payroll data.
The organizations should be aware that the process of calculating salaries isn’t an area full of mystery, but one of the biggest business opportunities – transforming HR department activity. The outsourcing payroll process and choosing an HR software provider with recognized results in market become a natural choice to streamline business in 2014.
There are two ways by which payroll process:
1. Choosing a SaaS solution – use a human resource payroll software provider.
The payroll information is entered manually and the software must be configured specifically for your business. If HR software is not rented and is hosted on an internal server, add the cost of hosting and maintenance.
2. Complete outsourcing payroll process
The payroll is done by an external company. Maintain confidentiality of salaries, delegate responsibilities to calculating salaries process, avoid taking risks and save time. The centralization of data allows careful verification and immediate costs per employee / department. As the company gets bigger and has employees with various types of contracts – so a complex payroll process -, the necessity of outsourcing is higher.
But what will bring the next years in the payroll outsourcing market? The trend to streamline payroll processes through HR outsourcing solutions will be increasingly emphasized. In addition, giving up to the “no name” solutions and choosing the well-known payroll platforms bring a guarantee to the business success.
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