Why do more and more companies turn to payroll outsourcing?
The intense competition, unstable market conditions and unpredictable legislative measures constitute the reality that the Romanian companies are facing when dealing with daily operations. No matter the activity field, each company is forced to prevent the effects of these internal measures aimed primarily at reducing labor costs, measures which are often translated into unpopular actions: layoffs, salary reductions or reduction of benefits packages value.
- Improved operational efficiency. An automatic and standardized system for the payroll activity gives companies a cost reduction of up to 30% compared with the situation in which this process takes place internally, and with a 40% lower calculation time. The extra time and budget can be easily directed to other priority areas of the organization that can benefit significantly from additional resource allocations.
- Access to superior expertise. Through outsourcing service providers, companies have access to calculation practices that have acquired efficiency during the administration of wages of hundreds of companies. In addition, besides the basic services, many business partners provide also HR consultancy, service aimed at the improvement of processes adapted to the specifics of each organization.
- Transparent costs. Companies can easily track costs associated with outsourcing because most Romanian outsourcing companies are using monitoring solutions for the time allocated to activities taking place on that account. The hours are recorded in real time while weekly reports directly overseeing the effectiveness of services can be presented to the management.
- Daily monitoring of legislative changes and their integration in the payroll calculation. The premium outsourcing solutions available on the Romanian market ensure legislative updates to the application within 48 hours from its publication in the Official Gazette. These updates are performed by teams of consultants specialized in employment law that advise clients on the implementation of changes and prevent legislative conflicts that can cause calculation errors.
- Fairness in filing the necessary documents for the state. Deposits are made at due time and automatically by the outsourcing company, as required by law. All risks are assumed by the contract terms that enact the relationship between partners and aims the full responsibility of the company that provides outsourcing services.
- Reliability and continuity in service delivery. The services provided often have continuous character (99% uptime service): the payroll calculation activities are not affected by absences, holidays or technical problems of the provider. Also, the staff trainings designed to keep employees connected to the latest developments in the labor market, the acquisition and maintenance costs of hardware and software infrastructure are eliminated. If we take a look at the acquisition price of an internal payroll and personnel administration solution, we can acquire payroll outsourcing services that are equivalent for 20 years.
- Fast go-live. If you approach TotalSoft or a TotalSoft partner for payroll outsourcing, the request can be received in 24 hours comprising the complex payroll for the entire personnel of the company.