Human resources is a field that is constantly evolving. The advent of big data, machine learning and robotics has led to massive disruption in the HR function. In fact, most talent professionals agree that artificial intelligence now plays a big role in sourcing, screening and nurturing new candidates. This is the prime reason that most organizations are now adopting sophisticated HR software for their diverse people management needs.
While human resources is mighty important for organizational growth, another vital function is payroll management. Companies often have a tough time deciding whether payroll comes under the human resources or accounting department. Well, payroll can be classified under the human resources department as it handles all employee data, we also strongly agree that there is a lot of accounting for effective payroll management.
However instead of worrying about how to classify the payroll function, let’s discuss the trend of payroll, HR and accounting outsourcing. Many companies across the globe outsource these major functions to specialized firms that use advanced tools to perform them qualitatively. Payroll software helps in managing sensitive employee information and disbursing salaries periodically. Even the manual accounting tasks related to payroll management can be easily handled – it reduces effort and saves tons of money in the long run.
HR, payroll and accounting are three strong pillars that lay the foundation for any successful organization. Outsourcing these valuable functions can bring about these transformational benefits for organizations:
- Cost-Effective: Every organization wants to increase business revenues and boost profitability margins. Outsourcing payroll, HR and accounts can lead to economies of scale, thereby reducing the cost of operations. Due to outsourcing, companies do not need to maintain a large full-time staff and hence save lots of money by maintaining a leaner workforce. Automated systems such as performance management software and accounting software reduces human labour, thereby facilitates cost-cutting measures. Outsourcing is a smart move as it is sure to increase inbound cash flows and build up overall functional productivity.
- Scalability: Business organizations commonly expand operations as they thrive in a successful market. Outsourcing HR, payroll and accounts can help companies manage their growth and expansion successfully. Many times, if these functions are handled in-house, organizations are unable to find the expertise and skilled staff to manage fast-paced business growth. Outsourcing organizations are specialists and have trained staff members to handle the changing requirements of business organizations.
- Best Practices: Professional outsourcing agencies are the best in the business. They employ best practices that result in efficient service and happier customers. They have a wealth of functional knowledge on HR, accounting practices and payroll management. This reflects in the work processes as outsourcing firms are able to achieve maximum output with minimum efforts. Outsourcing companies deliver superior quality work as they have the best expertise and professional know-how of various industries.
- Better Compliance: It is a challenge for organizations to comply to Government legislations and rules. Salary payments, accounts management and human resource policies keep on changing and it is difficult for any organization to keep track of these changing rules. Outsourcing agencies are well versed in the latest policies, and make sure that documentation complies with government mandates. This makes sure that an organization never defaults on payment issues and remains on the right side of the law.
- High Security: Sensitive company data needs to be protected from hackers and other fraudulent parties. Outsourcing companies have strict guidelines about data security and they make sure that unauthorized personnel cannot access their client data. Outsourcing firms have on and off-site servers, encryption standards and password protection so that there is no risk of data theft or fraud. All operations are highly transparent, thus making third-party outsourcing a reliable way of protecting vital information.
- Time Saving: Outsourcing reduces a major chunk of work for your employees. They are left available to focus on core strategic issues. All administrative and manual tasks that form a huge part of HR, payroll and accounts are seamlessly managed by the outsourcing agency. This will enable team members to develop long term strategies that will help in outperforming rivals and gain a competitive advantage.
- Stability: Companies need to work on retaining a satisfied workforce that plans to remain with them in the long run. Outsourcing HR, accounts and payroll increases the quality of work and brings about a high level of stability to any organization. There is less workload for employees and they can take part in strategic decision making rather than mundane tasks. It enhances job engagement, and greatly reduces the attrition rate, thereby boosting stability.
HR, accounts and payroll form an essential triangle and none of these vital fields can be ignored by organizations. Outsourcing them to a specialized agency will be lucrative monetarily and bring about massive productivity to any modern organization.
HR, payroll, and accounts is a winning combination. Make sure to handle these functions well to witness a positive difference in bottom line results instantly!