12
Mar 2021
Companies often face several hurdles in their journey from incorporation to progress and towards successful establishment with strong footfall in the market. But this process is easier said than done. While many companies are self-sufficient in the field of administrative expertise for carrying out activities such as – registration, legal documents compilation, tax filing, secretarial activities and payroll processing; other companies often feel the need to outsource the same via consultants that specialize in providing such services.
That’s where the need arises to build connections and outsource vital administrative activities to consulting firms and ensure that the client company can focus on their core objectives and goals without spending excess time and manpower. Amongst the various services that companies can outsource, an essential one that this article promises to touch upon in brief is the activity of Outsourcing Payroll Services and why such an act can be beneficial for a company in the long run.
What does Payroll Outsourcing mean?
The activity often consists of 2 parties, the primary party being the client company that requires the service and the secondary party being the company that provides the service. Payroll is usually outsourced by companies that have a large number of employees because of which the process of structuring their payouts or salaries and bonuses becomes very tedious and time-consuming.
In order to rid the client company of the hectic struggle, consulting firms provide solutions via handling the client’s payroll activities using exclusive methods and technologically enhanced solutions. Consulting firms collect employee data from the client company and conduct the analysis to decide the payout structure, incentives to be paid based on performance and benefits that employees are already receiving from their employer. Some consultants even design future compensation packages for middle-level and top-level positions in the client company’s managerial organizational hierarchy. A regular occurrence during Payroll Processing in Dubai and other locations of UAE.
The structured plan is presented to the client company and upon their demands, certain amendments are made to suit their comfort. After the approval of the plan, the consultancy collects the payout funds and credits the employees’ accounts on the fixed dates with the promised salary amounts. Moreover, the consultancy firms maintain complete transparency with the Human Resources Department throughout the clock 24/7, 365 days a year. Maintaining transparency and quality in reporting standards is extremely important considering the fact that the Human Resources department analyzes employee performance and updates the consultancy to alter the incentives and bonuses accordingly. In some cases, it is also the duty of the payroll service provider to diligently manage each employee’s miscellaneous benefits such as employee provident fund accounts and so on.
Thus, when client companies outsource these payroll activities from professional consultancy firms, the service is deemed as a payroll outsourcing service.
Advantages of Payroll Outsourcing –
There are various benefits of payroll process outsourcing such as -
- Maintenance of employee records and data.
- Timely processing of salaries and benefits to ensure employee morale and trust in the organization is established.
- Professionally designed compensation packages.
- Tailor-made digital solutions.
- Improves client company’s image among the employees when sensitive requirements such as salaries and benefits are handled with discipline and in a timely manner.
- Re-allocation of resources in departments that have more requirements.
Value Creation for Clients
When it comes to providing corporate services, matters often stretch beyond just money inclined a little more towards the overall value creation that the consultancy is providing to its client firm. We at JAXA are skilled professionals in the field of networking and providing quality service. The features that define how we create value for our clients are –
- Regulatory Compliance with International Financial Reporting Standards.
- Timely delivery of projects.
- A strong team of experienced professionals working extensively to provide clients with quality services.
- JAXA is an industry leader that has made an impact on many popular business markets in the world.
A Data-Driven Spectacle
Payroll management is an extensive task that is easier dealt with when handled by specialized entities. JAXA being a premier chartered accountancy firm knows the burdens that come with business setup and therefore, we strive to make the journey less tedious for aspiring entrepreneurs and future market leaders. Contact us, to know more about how to avail our services.