Utilizing Outsourced Payroll Providers – A Strategic Move For MNCs In Vietnam
March 31, 2022
Compensation is one of the most basic factors for any business, and precise payroll requires a lot of time and effort to ensure all processes are regulated and secured. In today's fiercely competitive landscape, organizations strive to optimize Human Resources, time, and cost as much as possible. As a result, the demand for Outsourced Payroll Services has become a trend in optimizing resources to focus on developing business activities. So what is Outsourced Payroll Service? Why do so many multinational companies choose to outsource payroll? Let's find out with Talentnet!
1. What is Outsourced Payroll?
Outsourcing Payroll Service is a form of service in which businesses will use the system and resources of HR providers to perform tasks related to the calculation of wages, insurance payments, personal income tax of employees,…
According to Technavio’s report, the global market share of the outsourcing payroll industry will increase to $6.15 billion between 2020 and 2025 with CARG reaching 5.2%. Furthermore, Outsourced payroll services in regional countries and Vietnam, in particular, are no exception when they are receiving a lot of special attention, especially foreign-invested enterprises.
And for these businesses, it is important to follow the local payroll regulations and ensure the highest level of confidentiality regarding the income of employees and management, especially the foreign workforce.
What payroll functions can be outsourced?
Depending on organizational needs as well as the industry, the business can choose specific payroll functions to outsource:
- Manage and update the company and its employee data
- Enumerate staff payroll, rewards, benefits, social insurance, and personal income tax,…
- Provide a system for employees to access and view their payroll and benefits easily.
- Consulting and supporting enterprises in handling legal issues, administrative procedures, and compliance.
2. Why MNCs should choose Outsourced Payroll Services
According to the assessment from Human Resource experts, a business often has to spend a lot on building a department specialized in employee compensation and investing in computer equipment, developing and constantly updating payroll software, or organizing training programs to improve employee skills. Therefore, when using outsourced payroll services, enterprises gain immediate access to a seasoned payroll team along with an international standard system, allowing them to begin operating efficiently straight away, contributing to minimizing costs and Human Resources, and helping businesses focus on more important objectives.
The fact that the business builds and processes the payroll itself requires not only financial resources but time. Especially for multinational enterprises with many professions, the payroll process for employees of different groups can be time-consuming and open to mistakes. Once unwanted problems or errors occur, it will take a lot of effort to correct them. However, when using outsourced payroll services, businesses no longer have to worry about the aforementioned issues when the payroll burdens are passed on to outsourced payroll providers.
Precise and punctual
Outsourced payroll services help businesses implement policies, and calculate costs, wages, and benefits quickly and accurately, thereby allowing them to budget effectively while minimizing errors and incurred costs.
Ensure security of information
Based on IBM’s report, a data breach could cost anywhere from $3.86 million to $4.24 million. Data relating to employees, companies, and compensation are all sensitive data. Especially in the post-Covid-19 era when businesses adopt work-from-home methods, data protection is more important than ever. The use of outsourced payroll services by a reputable provider will benefit from using their security system, helping businesses escape the pressure to ensure information security and work more efficiently.
No worries about the legal provisions of the Labor Law
Compliance with the law or always having to update the latest rules related to payroll is not easy, especially for SMEs. In particular, when businesses have multinational activities, this work becomes even more complex. Therefore, the help of outsourced payroll providers is an optimal measure. With a professional team and experts in the field, providers will help businesses optimize, update the latest information and minimize unnecessary fees.
3. Top 3 Outsourced Payroll Providers in Vietnam
With more than 20 years of experience in the field of Human Resources, Talentnet is the market leader in HR Consulting and Outsourced Payroll services in Vietnam. By delivering solution packages and fully automatic Vietnam payroll system, matching global standards while complying with the local law, Talentnet focuses on supporting clients in building an efficient and flexible HR model.
- Outsourced Payroll Services
- Mercer Salary Surveys
- Executive Search
- HR Consulting
- HR Outsourcing
- Address: 33 Mạc Đỉnh Chi, Phường Đa Kao, Quận 1, Thành phố Hồ Chí Minh, Việt Nam
- Mobile: (84 28) 6281 4188
After years of growing from a small company, HR2B has become one of the more outstanding Human Resource agencies in Executive Search, Payroll, and HR management. HR2B’s Payroll Processing solution, in particular, assists clients by streamlining Vietnamese Law regulatory processes and completing jobs more quickly. It promises to help customers save as much effort and cost as possible while still being the most efficient.
- Payroll Processing service
- HR Outsourcing
- Executive Search
Faro Recruitment Vietnam
Faro Recruitment Vietnam is one of the renowned and experienced payroll service providers in Vietnam. For more than 16 years since its establishment and operation, Faro Vietnam has satisfied customers with quality services and support outside the service range. Faro has a team of professional experts, who promise to bring the most optimal solutions for all types of businesses.
Some services Faro offers:
- Executive Search and Selection
- Staffing Solutions
- Payroll Administration
- Human Resource Compliance
4. Talentnet – an Outsourced Payroll Provider
Besides being confident as the leading HR consulting company in Vietnam, Talentnet is also an expert in the field of providing Outsourced Payroll Services. To help customer businesses build a highly productive, highly efficient HR model, we will bring solutions to support payroll suitable for the region while meeting international standards. Moreover, the calculation systems are fully automated.
Reasons for choosing Talentnet Vietnam as an Outsourced Payroll Provider
- Provides an international standard payroll system and supports a 5-star phone application
- Apply international standards related to data security, maximize protection of customer data information
- Smooth integration of different HR systems
- Set up the right service packages according to each customer’s needs
- Understand market practices and the latest legal regulations
- Commit 100% accurately, on time, and comply with the law