Salary Outsourcing services pros and cons
Salary Outsourcing Services
Salary Outsourcing services is very popular nowadays adopting by the MSMEs, startups, mid-level, upper midlevel companies and organizations to minimize the HR and payroll cost and to take a full benefits and advantage of the salary outsourcing services without involving or engaging their core line executives.
Commonly salary outsourcing services called as Payroll Outsourcing services also. In this topic we talked about below main points:
1. Benefits of salary outsourcing services
2. What are the average cost or price per employee or lump sum for salary outsourcing services
3. What are the ideal scope of work to be check and incorporated in the salary outsourcing services
4. What are the qualities of good service provider for salary outsourcing services
5. Comparison in house salary processing and salary processing thru salary outsourcing services
6. What more additional of HR services can be asked to vendor to add with salary outsourcing services
7. Conclusion.
1. Benefits of salary outsourcing services
a) Minimize the Cost: The very first benefit of salary outsourcing service is to minimize the salary processing or payroll processing cost. When companies does it in house they need to hire a dedicated one or two payroll officer or executive who will do this job full day and related works. But for a small or mid-size level company can do minimize this cost just near to half to adopt system of salary outsourcing services.
b) Confidentiality: Peoples and companies are much concern about their salary package confidentiality. In house salary processing chances to break confidentiality because it’s a human nature that in-house peoples can break this to maintain their official relations or friendship but once this work outsourced there is very less chances to break the confidentiality as compare to in-house salary processing.
2. What are the average cost or price per employee or lump sum for salary outsourcing services
a) There is various service providers of salary outsourcing services in India and their rates vary place to place and according to standard services but I try to mention an average prices according to services and employee strength.
3. What are the ideal scope of work to be check and incorporated in the salary outsourcing services
Once you decided to take the services for your payroll processing outsourcing you should check the below ideal services from any vendor of salary outsourcing services service provider.
i) Monthly paysheet/salary sheet or wage sheet preparation and provided having mandatory fields as per act and rules.
ii) A good and presentable payslip with company logo providing regular monthly basis to directly employees email id or to the authorized person of the company.
iii) Monthly Bank payment disbursement sheet
iv) Monthly PF ECR generation and challan preparation
v) Monthly ESIC challan generation
vi) Regular basis new employee enrollment into epfo and esic site
vii) Employees support for PF, esic and other payroll related issues.
viii) Regular annual statutory returns related to bonus, gratuity etc.
Apart from above Company can ask to service providers of salary outsourcing services to provide some additional services which relates to day to day HR operations like
a) Employees on boarding documentation
b) Appointment and offer letter issuance with preparing salary package or ctc structure
c) Annual appraisal letter with increment letter
d) Increment calculation
e) Form 16 of employees and tds support
f) ESS system for employees
4. What are the qualities of good service provider for salary outsourcing services
Below are few good qualities should be in an ideal service provider of salary outsourcing services.
1. Proactively update to the companies about beneficiaries Govt. schemes of the government.
2. Timely fulfil the clients requirement
3. On time and accurate reports and statement provided to the clients.
4. Standard base information sheet to be ask from clients having all important fields
5. Proper monthly salary reconciliation.
6. Monthly MIS report
7. A good service support to company as well as handling promptly employee’s grievance and resolved in the quick time duration.
5. Comparison in house salary processing and salary processing thru salary outsourcing services
In-house salary processing Salary outsourcing services
Higher Cost Lower cost
Employee retention issue No issue for employee retention, as always work going on whether any employee left or joined
Lack of expertise Service provider has a team of experts can provided up dated and accurate services
Issues of confidentialities Confidentiality more assured
Lack of maker checker and chances of errors Very less chances of error as mechanism of maker and checker
Chances of mis-dates of compliance or overdue the dates No chances of mis-dates.
6. What more additional of HR services can be asked to vendor to add with salary outsourcing services
Apart from regular scope of work covered in salary outsourcing servicing, companies can add some more HR services from the service provider of salary outsourcing services with some minimum extra cost like:
Employee end to end records maintain complete life cycle hire to retire
Maintain regular labor compliance records and registers
Audit of contractors compliances
Other HR related works
7. Conclusion.
Salary outsourcing services recommended only as a suggestion this is only companies sole discretion to go with in house payroll processing or outsourced their payroll thru a salary outsourcing services companies. Though, we suggest for a small, startup, middle and top middle companies those have company employees strength 1 to 500 should be outsource their salary processing system partly or whole with HR operation system.
From India, Noida
Salary Outsourcing Services
Salary Outsourcing services is very popular nowadays adopting by the MSMEs, startups, mid-level, upper midlevel companies and organizations to minimize the HR and payroll cost and to take a full benefits and advantage of the salary outsourcing services without involving or engaging their core line executives.
Commonly salary outsourcing services called as Payroll Outsourcing services also. In this topic we talked about below main points:
1. Benefits of salary outsourcing services
2. What are the average cost or price per employee or lump sum for salary outsourcing services
3. What are the ideal scope of work to be check and incorporated in the salary outsourcing services
4. What are the qualities of good service provider for salary outsourcing services
5. Comparison in house salary processing and salary processing thru salary outsourcing services
6. What more additional of HR services can be asked to vendor to add with salary outsourcing services
7. Conclusion.
1. Benefits of salary outsourcing services
a) Minimize the Cost: The very first benefit of salary outsourcing service is to minimize the salary processing or payroll processing cost. When companies does it in house they need to hire a dedicated one or two payroll officer or executive who will do this job full day and related works. But for a small or mid-size level company can do minimize this cost just near to half to adopt system of salary outsourcing services.
b) Confidentiality: Peoples and companies are much concern about their salary package confidentiality. In house salary processing chances to break confidentiality because it’s a human nature that in-house peoples can break this to maintain their official relations or friendship but once this work outsourced there is very less chances to break the confidentiality as compare to in-house salary processing.
2. What are the average cost or price per employee or lump sum for salary outsourcing services
a) There is various service providers of salary outsourcing services in India and their rates vary place to place and according to standard services but I try to mention an average prices according to services and employee strength.
3. What are the ideal scope of work to be check and incorporated in the salary outsourcing services
Once you decided to take the services for your payroll processing outsourcing you should check the below ideal services from any vendor of salary outsourcing services service provider.
i) Monthly paysheet/salary sheet or wage sheet preparation and provided having mandatory fields as per act and rules.
ii) A good and presentable payslip with company logo providing regular monthly basis to directly employees email id or to the authorized person of the company.
iii) Monthly Bank payment disbursement sheet
iv) Monthly PF ECR generation and challan preparation
v) Monthly ESIC challan generation
vi) Regular basis new employee enrollment into epfo and esic site
vii) Employees support for PF, esic and other payroll related issues.
viii) Regular annual statutory returns related to bonus, gratuity etc.
Apart from above Company can ask to service providers of salary outsourcing services to provide some additional services which relates to day to day HR operations like
a) Employees on boarding documentation
b) Appointment and offer letter issuance with preparing salary package or ctc structure
c) Annual appraisal letter with increment letter
d) Increment calculation
e) Form 16 of employees and tds support
f) ESS system for employees
4. What are the qualities of good service provider for salary outsourcing services
Below are few good qualities should be in an ideal service provider of salary outsourcing services.
1. Proactively update to the companies about beneficiaries Govt. schemes of the government.
2. Timely fulfil the clients requirement
3. On time and accurate reports and statement provided to the clients.
4. Standard base information sheet to be ask from clients having all important fields
5. Proper monthly salary reconciliation.
6. Monthly MIS report
7. A good service support to company as well as handling promptly employee’s grievance and resolved in the quick time duration.
5. Comparison in house salary processing and salary processing thru salary outsourcing services
In-house salary processing Salary outsourcing services
Higher Cost Lower cost
Employee retention issue No issue for employee retention, as always work going on whether any employee left or joined
Lack of expertise Service provider has a team of experts can provided up dated and accurate services
Issues of confidentialities Confidentiality more assured
Lack of maker checker and chances of errors Very less chances of error as mechanism of maker and checker
Chances of mis-dates of compliance or overdue the dates No chances of mis-dates.
6. What more additional of HR services can be asked to vendor to add with salary outsourcing services
Apart from regular scope of work covered in salary outsourcing servicing, companies can add some more HR services from the service provider of salary outsourcing services with some minimum extra cost like:
Employee end to end records maintain complete life cycle hire to retire
Maintain regular labor compliance records and registers
Audit of contractors compliances
Other HR related works
7. Conclusion.
Salary outsourcing services recommended only as a suggestion this is only companies sole discretion to go with in house payroll processing or outsourced their payroll thru a salary outsourcing services companies. Though, we suggest for a small, startup, middle and top middle companies those have company employees strength 1 to 500 should be outsource their salary processing system partly or whole with HR operation system.
From India, Noida
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