Routine payroll processing (as distinct from HR function) is a critical back office function but hardly one that merits precious management or executive time and effectively a cost centre. Coupled with oft-changing regulations it becomes a prime candidate for a function to be outsourced with little or no adverse impact on the performance of an organisation. In fact, outsourcing it could have some advantages and benefits, prominent amongst which is saving of managerial time, reduced risk of non-compliance to rules and regulations, confidentiality and reduced burden on the finance function. These benefits seem to be growing on many large organisations and multi-nationals who prefer to outsource essential but non-critical functions to specialised service providers.
- Why should companies consider outsourcing their payroll function? What are the benefits of payroll outsourcing in Dubai and Abu Dhabi? Read on. Expertise and specialisation at a cost lower than or equal to a dedicated resource who may not be able to keep up with changing regulations. Risk of not complying with regulations is vastly reduced. Accounting firms in Dubai and Abu Dhabi offer such services at a reasonable cost.
- Reduced burden on the finance team who has the responsibility of processing the payroll each month. The time dedicated to payroll can be used to analyse the more critical function of analysis of where the business is headed and what needs to be done to grow it.
- Confidentiality of payroll is maintained, especially when some employees are remunerated higher than others due to their go-get attitude, initiative and achieving results beyond their call of duty. Confidentiality is difficult to maintain when an employee of an organisation is privy to such details.
- Outsourced professionals generally use software to process payroll and maintain the database and generate required information. Outsourcing the payroll function saves an entity from investing in such software, maintaining it and protecting the database.
- Prevention of loss of domain knowledge due to attrition. When an employee in charge of payroll leaves an organisation, he/she takes domain knowledge of the entity and the payroll function. Training of a new employee and handover becomes an additional burden. This is not the case when the function is outsourced, as most reputable firms will have more than one person in the payroll team and the handover is nowhere near as troublesome as the inhouse handover.
How can PKF UAE help you?
- We bring local knowledge of laws, customs and practices that work in the best interest of the organisation and its employees. Adherence to local laws and regulations is assured.
- We maintain complete confidentiality, accuracy and detailed reporting of the payroll function.
- We manage the entire payroll cycle, right from preparation of monthly earnings, deductions, gratuity, pension funds, pay slips, loading online instructions (on a bank’s website), delivery of pay slips to the employee’s/company representative, and reporting.
- We use a Cloud-based HR and payroll software that provides access to HR and payroll data of employees and HR personnel of the client.