Third-Party Payroll in 2020- Less Stress, More Efficiencyadmin
2020 is finally here, and with it come a whole new set of challenges for organizations in terms of finding and retaining the right talent. Workplaces are continually evolving to keep with the times and the ever-changing needs of the marketplace. With Glassdoor’s chief economist Andrew Chamberlain declaring that employees would be organizations’ sole focus in the year ahead, the race is on for employers to find, manage, and retain the best talent.
A survey by Paycor found that 2020 will see 55 million job openings will be available in 2020 and that there is a focus on managing and keeping employees in check and satisfied with current conditions. According to the 2019 BlueSteps Executive Career Outlook survey, India in 2020 was the most optimistic, after Brazil about the growth of senior management roles in 2020.
HR Challenges in 2020
HR will face an uphill task in the months ahead in terms of various aspects ranging from:
- Compliance related issues as HR managers must keep abreast of changes to existing laws and regulations.
- Evolving Technology which affects the whole of the marketplace both directly as well as indirectly.
- Changing demographics as managers must adapt to younger workforces with different perspectives.
- Sociopolitical changes directly impact the public, which in turn affects organizations and products.
One of the major elements of an organization is employee payroll processing. Payroll processing happens to be an organization’s backbone. It does not merely include record maintenance of an organization’s employees. It also refers to tasks such as:
- Handling of employee salaries
- Tax deduction from employee salaries
- Attendance and Timekeeping
- Employee Performance Tracking
- Data Analytics
- Compliance related tasks
In many organizations, payroll takes up a major chunk of many companies’ expense. Almost 30% of many organizations’ expenses have been towards the functioning of payroll and payroll processes.
Employee Payroll Processes
When processes become too much for in-house personnel to handle, organizations turn to outsource. Payroll outsourcing services are a major boon for overburdened managers and organizations. These payroll outsourcing services are third-party vendors that help organizations with employee payroll processes.
Employee payroll processes can be effectively handled via payroll outsourcing services that manage all the payroll related tasks from end to end or are tailored to fit an organization’s needs or requirements.
Benefits of Payroll Outsourcing Processes
- Payroll outsourcing processes allow managers and employees to access data and records at will and with ease easily. This provides for employee payroll processes to go on smoothly and boost overall efficiency in the workplace.
- Cloud-based storage methods adopted by third-party payroll services or software ensure that data is both easily accessible as well as well protected.
- Chances of errors and incorrect calculations can be reduced.
- Money, time, and effort can be saved, reducing overhead costs that eventually all benefit the organization in the end.
Payroll and compliance
- It is another important area that these third-party payroll vendors handle. Failure to meet a set of standards, laws, or regulations according to the company or the government results in compliance failure. Compliance failure can cost the company both financially as well as in time and effort. Oversight can be costly, but outsourcing can prevent these errors. Compliance failure can also result in a negative public perception and overall lack of goodwill for the company. Outsourcing can prevent that.
Given that the marketplace is becoming more competitive, and organizations must stay lean and mean, many organizations are choosing to opt for third-party payroll processes. The global outsourcing market is worth 85.6 billion USD, and 59% of businesses outsource to improve efficiency, it can only mean that this could signal an upward trend for a very competitive market for the days ahead.