12.06.2019 HR and Payroll outsourcing

[Poland] When is it worth to use HR and payroll outsourcing services?

Outsourcing personnel and payroll processes is a strategic decision for companies. In which cases can the outsourcing model be more beneficial than the implementation of such activities within the organization?

The decision to outsource business processes, including those from HR and payroll or broadly understood HR should usually have long-term character, because it is associated with a large organizational change. In each case, it should be preceded by a multidimensional analysis, not only financial. Today, cooperation with an external supplier is much less often perceived only through the prism of reducing costs.

Companies increasingly see outsourcing as a source of competence and knowledge. Deciding on the separation of processes outside, they expect optimization, access to modern technology and provision of resources necessary to implement specific activities – notes Magdalena Aleksandrowicz, President of Contract Administration.

For such reasons, HR and payroll outsourcing is sought by companies of every size,  not only the largest ones. Smaller entities do not have to invest in the purchase and security of systems, which, with a small scale of operation, is a significant expense. Larger players are not worried about recruitment and retention of human resources departments, which, given the current situation on the labor market, is a growing problem for employers. No less important is the need to systematically update knowledge and improve team competence, which is more difficult in companies with high employee turnover.

HR and payroll services are a critical process in organizations. This is an area that requires not only great meticulousness and extensive knowledge of labor law, social security, but also the skills of its practical application. – adds Magdalena Aleksandrowicz.

An external provider of HR and payroll services is responsible for process safety and its implementation in accordance with applicable legal regulations. He also supervises statutory deadlines. Most often, he represents the employer in contacts with public institutions, for example Social Security institutions, tax offices or the National Labor Inspectorate.

The task of the HR and payroll service provider is to ensure security at every stage of the activity – from the broadly understood compliance, through the protection of personal data processed, to ensuring the continuity of the process – says Ewa Pykało, International Strategic Account Manager Contract Administration.

We employ systems that bring to precise analysis of processes and provide management information to HR or finance department directors, which makes it easier to assess the effectiveness of activities. On the other hand, our technological solutions allow for the automation of activities, which translates into cost optimization and more efficient use of resources – adds Ewa Pykało.

Advanced reporting mechanisms, that enable process monitoring and cost control are key aspects that should be taken into account when analyzing the possibility of switching to an outsourcing model. When choosing a supplier, it is worth paying attention not only to the price, but also to the experience, scale of operations and references from clients. It is important that the external company has the knowledge and resources to improve operational efficiency and flexible development of the scope of cooperation.

When deciding on outsourcing, it is crucial to precisely define the needs and expectations. A large part of the clients we cooperate with, have clearly defined goals, which makes it easier for us to build an optimal model of cooperation– concludes Ewa Pykało.

Modern outsourcing is a partnership based on trust and mutual understanding of needs. The synergy of knowledge and opportunities will not only facilitate the optimization of personnel and payroll processes, but also enable further business development and satisfaction of both parties to the contract.

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