Outsourcing payroll management: from industrialization to à la carte service.
1 October 2016 — SAP HCM
The decision of a company to outsource the Personnel and Payroll Administration is not only based on lowering the costs of the service, but also on ensuring peace of mind in the payment of those services.
The peace of mind that an internalized service provides is obtained thanks to the trust in the professional work of well-trained and highly experienced personnel. The outsourcing of services does not have to mean a loss of confidence in, or lessening of quality of those services.
One may think that there is a sense of encapsulation in it being necessary to fill in countless spreadsheets and to perform routine tasks, such as those caused by a change in the fiscal situation of a worker or the procedures to terminate an employee. None of this has to be necessary.
The continuous improvements of Information Systems allow greater flexibility and adaptability of work processes. The possibilities of adaptation are endless.
With a team specialized in SAP HCM, with knowledge of the functional application of business processes, and knowledgeable about the current laws in force, as well as speed and skill in configuring the system, a better type of outsourcing is possible.
We are facing a new paradigm of outsourcing HR services through a highly specialized HRIS capable of adapting to the day-to-day of customer processes.
This does not mean that with this new approach the client does not need to provide personal data of a new recruit or perform validation of data, but the time that has to be invested in the transfer of information or validation is minimal and work done will be of the highest possible quality. This is technologically feasible since each piece of data flows to the system where it originates, so that the customer’s own administrator or the worker himself could communicate this information. Subsequently the service provider will complete the information adding the data corresponding to the processes it manages.
(Ex: in the case of hiring a new employee, a customer does not have to know which is the most appropriate contract, but the supplier does, since he keeps up to date with legal and business processes).
Likewise, with respect to business processes, the client may want to manage those processes of value that he prefers to directly control. Other processes, which are not important for the organization to maintain on its premises, are outsourced to the service provider.
Staying close to the client as well as standardizing work processes minimize human error in the inclusion and verification of information.
Regarding the specialization of the service, the BPO services not only indicate that the accounting has been carried out, but also the credit balances of the main Accounts will be specified, squaring up each entry, if the client so desires.
Likewise, it is not necessary to limit services to merely carrying out those steps strictly necessary for the “Direct Settlement System”. This comprehensive management system clarifies any doubts the client may have by showing him the definitive results squared up to the penny with the payroll.
These are examples of the personalized service that today is made available to the client. A demand for modular services may come into play:
The range of possibilities provided to the customer is wider than ever before. The assembly line continues to operate at full capacity, but the customer does not have the perception of a mass production job because it is fully adapted to his needs.
This personalized approach to satisfy the needs of different clients is not incompatible with a service that takes advantage of synergies and learnings in industrialized processes. Flexibility in communication and a well-oiled work organization allow for a highly personalized service with its corresponding savings in workload.
On the other hand, staying close to the client and the standardization of work processes minimize human error in the inclusion and verification of information.
All these factors have led to a transformation of the work processes that result in a better service perceived by the client and consequently in greater peace of mind. Lowered costs together with reduced risk by lower fixed personnel costs, make the decision to outsource easier.