Why organisations should consider outsourcing HR and Payroll functions?

Managing HR functions in any firm is a complex task and involves investment of time and resources, while also ensuring that the organisation complies with local laws and regulations. If not managed by experienced professionals, companies run the risk of running into trouble with the governing authorities and regulatory bodies.

This is further compounded by the fact that companies have to also ensure that there is a constant state of learning and development, so as to deploy the latest technologies and systems to improve processes and enhance productivity.

In such situations, outsourcing certain administrative HR and payroll-related tasks can enable businesses to focus more closely on their core business while managing employee-related risks, reducing administrative burdens and lowering costs.

Let us explore a number of functions that organisations should consider outsourcing:

HR Functions

Outsourcing certain HR functions help ease complicated and time-consuming processes for organisations. Leveraging a strategic perspective added with innovative technology, outsourcing certain functions within HR can help improve corporate efficiency along with cutting costs, managing employer-related risks and reducing administrative risks.

1. HR Advisory and best practice, knowledge sharing and support with HRMS setup: Consulting companies are updated with the latest best practices and knowledge along with the latest updates and developments, as they have the advantage of working with a variety of organisations across a wide spectrum of industries.

2. Administrative tasks like the preparation of offer and/or employment letters and contracts: Certain tasks can be extremely time-consuming and require that companies adhere to local laws, like in the case of contracts. Outsourcing experts who are more conversant with local laws and have the latest updates on compliance-based requirements, can help improve the overall processes, especially in the case of new recruits.

3. Maintaining and archiving employee personal records, letters and training records: HR functions involve having to generate a lot of documentation and keep a number of records, which can prove to be a labour-intensive task. Furthermore, creating an efficient system to maintain and archive personal records is made easier if left to experts that are well-versed with this function, for ease of retrieval at a later point in time.

4. Tracking employee annual leave, air ticket, passport and visa expiry: Employee-related administrative activities require that companies constantly invest time and effort to keep track of critical deadlines, like in the case of visa expiry dates. Outsourcing firms / consultants who take on the responsibility of keeping track of these important functions, providing the right kind of resources in order to efficiently carry out the same.

Payroll

Payroll, a non-core function is best outsourced to the HR and Payroll experts. You can take advantage of their expertise and technological prowess and avoid the risks of errors and non-compliance to rules and regulations. It not only frees up your time, but it will also reflect on your bottom line.

1. Payroll accounting and coordinating with financial accounting: Consulting companies can help improve efficiency and reduce costs when it comes to Payroll accounting services. They are also extremely knowledgeable about the various accounting procedures that companies need to adhere to, and can also help assist in preparing annual financial statements and other reports according to the company’s needs.

2. Payroll processing: Outsourcing payroll processing also helps with ensuring a robust, efficient function by experts in this domain. This includes preparing employees’ payrolls, including the calculation of salaries, Gratuity etc. This can help save a lot of time and effort for companies, with such standard operating procedures.

3. Generation of monthly payroll report, pay-slips, payroll journal, YTD reports: Companies can also save on a lot of time and resources by outsourcing this function, wherein external consultants are responsible for computing employees’ withholdings and net pay along with ad hoc additional payments or deductions, while issuing employee pay slips, payroll journals and Year to Date (YTD) reports.

4. Payroll bank file as per the Wage Protection System (WPS): The Wage Protection System (WPS) approved by the UAE Government requires all UAE companies to register and pay staff through the WPS. Payroll experts will ensure that all your payroll and employment obligations are met and that your organisation complies with the Wage Protection System (WPS).

5. Payroll support services including employee benefits such as gratuity, annual leave: Expert consultants are also well-versed with UAE Labour Laws, including Annual Leave, Sick Leave and end of service gratuity payments. Such non-core business activities are equally critical in order to ensure that a company adheres to local laws.

MBG’s role in HR & Payroll

Harness the strength of MBG’s expertise in HR & Payroll for effective time management, so you can prioritise on your core activities. Our HR & Payroll services are always customised to meet the demands of each client with a 100% client-centric solution. With seamless coordination on the full range of services and end-to-end processes, you can count on us for reduced costs as compared to your in-house HR and Payroll setup. Be assured of the safety and security of your information and specialised support for a whole range of allied services.

Want to partner with us and drive your organisation’s transformational growth and success? Get in touch with us via Email [email protected] or send a WhatsApp to +971-526406240