Payroll Services – Solutions For Compensation & Benefits
July 6, 2022
In order to avoid late salary payments, payroll mistakes, etc, businesses can opt for payroll service instead of building an in-house team.
Payroll record is both personal and sensitive to employees because it is about how much they earn. An unclear and non-transparent payroll process can lead to payment errors, which may cause confusion and dampen morale among employees, or worse, lead them to leave the company.
“I have never received any monthly payslip at my previous company and have no idea how much of my salary is used to pay for health and social insurance. Furthermore, I used to have my salary deducted for no reason, and it’s impossible to know why due to the untransparent payroll process. For those reasons, I decided to quit my job,” Mỹ Duyên (30 years old, office worker, lives in HCMC) shared. Also, according to a survey from Bequom (a multinational compensation management software supplier), up to 51% of employees are willing to join a new company given a much more transparent payroll process.
Mr. Jack Nguyễn, Deputy CEO of Talentnet said that compensation is sensitive and needs to be transparent because if any matter occurs, not only trust and internal unity are affected but businesses also have to deal with legal regulations. “Businesses are managing diverse human capital with different contract types, ranging from expatriates, experts, contracts, blue-collar and white-collar workers, etc. The variety in employees poses a significant challenge for businesses and their in-house payroll, especially amid the payroll practitioners shortage. Investing in building a methodical, professional payroll system that can ensure data security or response to questions about compensation considers a great investment”.
In order to provide a transparent and on-time payroll process, businesses first need to deal with administrative workload in the payroll process includes: keeping labor records; processing manual data; complying and paying labor tax; data security and fraud prevention, etc. – according to Mr. Jack Nguyễn.
For SMEs, it is difficult for them to handle all the workloads mentioned. Meanwhile, making an immediate investment in finance, technology, and manpower is also an impractical solution. Meanwhile, it is true that large businesses possess a more surplus human capital as well as financial resources, but building a comprehensive payroll system will also force the HR team to spend more time and energy instead of focusing entirely on other strategic activities. Therefore, seeking help from payroll outsourcing services should be taken into consideration.
According to HR experts, the highlight of the payroll outsourcing services is the modern and up-to-date technology for specific needs, ensuring accurate, timely, and transparent payroll processes. Payroll outsourcing services also support businesses in responding to questions about salary, insurance, etc. Some professional payroll outsourcing services can also provide businesses with new salary trends and update on labor laws and legal regulations.
Besides, according to Mr. Jack Nguyễn, a transparent payment procedure will leave a great impact on personnel and the HR department development: “Once the workload is reduced, HR can focus on strategies for the company as well as improve professional skills. They are ‘liberated’ to pursue business sustainable development goals as well as put more effort in taking care of talents and strengthen the connections between business and employees.”