Planning to outsource your payroll?
Planning to outsource your payroll?
More and more companies nowadays are choosing to outsource their payrolls to focus their efforts on activities that bring greater value to their businesses. However, in such a changing environment caused by the COVID-19 pandemic, it is important to reflect on our clients’ most significant payroll-related needs:
- Increased demand for advisory due to changes in employment laws and their impact on the payroll.
- Increased demand for technological tools, such as: Electronic payslips, digital signature, web-based portal for employees, online vacation management, among others.
- Greater communication and flexibility to face the many changes and decisions that companies made in connection with the health and economic crisis.
- Remote work, restructuring, and digitization of all payroll management processes, from the hiring to the termination of employees.
In this scenario and given the uncertainty of how the pandemic will evolve, it is essential and strategic for companies to consider outsourcing their payroll processes.
Why outsource the payroll?
Before hiring the payroll outsourcing service, this matter should be assessed based on its advantages and disadvantages and then a decision should be made based on financial (cost) and non-financial (technology, timeliness, confidentiality, security, among others) elements, having efficient and orderly processes as a common element for both parties (client and provider).
1. Overall cost reduction
Cost of outsourcing vs staff salary, employment benefits, system/software licenses, physical space, overtime pay, among others.
2. Technology and specialization
Clients can take advantage of the experience, technology, capacity, and labor and tax advisory of companies specialized in this type of services, as this is the main line of business of such outsourcing companies.
3. Information security
Payrolls contain sensitive and confidential information. By outsourcing this process, the security protocols established by the provider allow this information to be protected.
4. Timeliness of payments
The protocols and work methodology implemented (software, use of schedules, and constant communication) ensure that salaries and related taxes are paid opportunely.
5. Focus on core business
Outsourcing the payroll allows companies to focus their attention on internal processes that create value such as: personnel selection, organizational climate, and employee development, among others. The payroll process must become a strategic support for the Human Resources department.
When choosing a payroll outsourcing provider, the final decision should be aimed at hiring a company with the right technology, expertise, and support.
At BDO Peru, we have the required experience and technology, as well as highly-trained professionals to serve companies from all sectors, which allows us to become the strategic ally that your business needs.