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From start-ups, small businesses and global enterprises, the adaption of Payroll & HR Outsourcing Singapore is on the rise. HRPlus Consulting shares the benefits driving this shift in HR departments.
Forbes recently released an article on how HR outsourcing can be a powerful move for small business enterprises that goes beyond not only as a cost-cutting measure but also challenging the common notion that outsourcing is better off for bigger business players. With limited time & resources, the lack of dedicated head count for specific tasks, ever-changing work environments and regulatory policies, more and more small to medium sized companies are recognising the benefits of outsourcing business processes, especially the traditionally confidential task of payroll administration and other HR services.
Payroll & HR outsourcing ranked 3rd with 32% as one of the most commonly implemented service in outsourcing providers together with IT, finance and customer service. Instead of completing the necessary hours spent for wage calculation, timesheet tracking, insurance, retirement and benefits contributions, banking trips and its arduous demand for accuracy, timeliness and an in-depth understanding of the latest local workforce regulatory and tax matters in-house, it just becomes efficient to outsource it to a trusted partner. Beyond cost savings, it increases business flexibility and agility, which is very essential in the light of a pandemic.
Instant Scalability Competencies
Shifting HR and payroll responsibilities to an outsourced provider helps businesses to respond to sudden shifts in headcount or work environments, without having to hire additional HR staff, re-assigning, or adding workload to existing staff. A trusted payroll and HR outsourcing Singapore service provider quickly understands the changing recruitment and employee shifts and gives companies access to a full team of payroll specialists who ensure HR tasks & payroll preparation is processed on time, accurately and in compliance with Singapore statutory and regulatory requirements.
Expansion | Growth Response
For companies with regional or multi-market operations, HR consultancy and payroll outsourcing service providers combine and consolidate services from headquarters and business units into a single entity. The plan of action is based on market-like principles and the transition of HR and payroll management as shared services rendered for all teams, and across all markets keep business units in check. An outsourced payroll and HR outsourcing Singapore service provider implementing best practices will be a key differentiator for those who wants to have a competitive edge of consistency with across-the-board quality of consultancy support.
Collaborating with an payroll & HR outsourcing Singapore provider can even become strategic when there are requirements to quickly operate business in a new market and hire the right talent overseas. As an Employer of Record (PEO), they are partners of businesses that take on the legal, tax, HR, and regulatory responsibilities to build, retain and optimise the talent acquisition and management, overseas, without requiring businesses to set-up a new overseas office.
Fast-Track HR Automation
HR Technology is becoming mainstream in the workplace scene. Outsourcing payroll services enables businesses to shift from what has traditionally be an off-line process into a digital, transparent and readily accessible data for all employees. This provides businesses the convenience of running their payroll processes on cloud-based systems and an opportunity to value-add into every organisation’s digital transformation journey. Outsourcing payroll also allows businesses to take advantage of robotic process automation (RPA) that many specialist payroll service providers use to optimise HR reporting and payroll processing. These new technology features in HRMS improves both the accuracy and timeliness of managing HR & payroll information, especially for international payroll demands. This can also help in streamlining payroll processes and potentially provide advance analytics on risk mitigation.
Regulatory and Fiscal Compliance
The average payroll processing for one person requires 14 pieces of personal information. If any of these are incorrect, it results to payroll errors. Payroll mistakes are common but costly. While it may not affect employees directly, it will impact business as well with the extra fines with legal and regulatory bodies that penalises every late or incorrect payroll submission.
Payroll legal and regulatory standards may also sometimes get complicated. It becomes considerably more challenging when working on a regional and global scale. Even a single error can expose businesses to more audits and hefty penalties because regulations change continually. To mitigate risks and ensure compliance, businesses will require a thorough awareness of relevant regulations. With the ever-changing rules and legislative policies upheld across different industry sectors and states, HR & payroll outsourcing to a third-party expert eliminates this problem. The appointed payroll service provider employs payroll experts and uses specialised HRMS technology to ensure that payroll is processed accurately and on time, every time. They are also the first to learn about changes to the tax code and legislations that affect payroll and are skilled at keeping payroll compliant.
Secure Expert Services
The majority of business owners and payroll personnel do not have the time to research and study constantly changing regulations, withholding rates, and government forms. The new normal of remote work, health and safety regulations in the workplace are already requiring many organisations to rethink how they can fully focus on their business priorities while addressing the evolution of the workplace post pandemic. With HR & outsourcing payroll, even small businesses can gain access to expertise that was previously only available to large companies. This comes essential especially if your company operates in multiple states, the complexity of managing payroll grows as the number of jurisdictions increases.
Outsourcing builds business resiliency
When the pandemic completely turned the table around economically, businesses that the Coronavirus whirlwind of events have common denominators – they know how to mitigate risk, stabilise costs and increase productivity despite of unprecedented events. We are all still adjusting and this may take a considerable amount of time. Human-to-human interaction become a lesser norm, more teams are working remotely or running hybrid efforts and a greater challenge in addressing the welfare of the company’s staff welfare and corporate culture becomes top priorities, not just for big players, but likely more critical for small and medium businesses and start-ups. Business owners and HR heads are now actively considering HR and payroll outsourcing. This should ideally provide their teams an even better same level of employee care, an automated and unified payroll, better time, attendance and benefits management. As businesses open up again, HR & payroll outsourcing is a viable move to help companies bounce back with speed and accuracy, beyond just the cost savings.
