Outsourcing payroll can be defined as the practice of hiring an external source or service provider to process payroll related duties. Outsourcing payroll involves duties such as calculating and regulating employee wages(that meet the market standard), ensuring that the company follows and complies with labour laws, and lastly managing employee benefits.
There are several reasons why companies Outsource Payroll services, some of which are:
Companies and organisations divide and take up on work depending on its importance. Outsourcing Payroll provides them a way to focus on much more important issues and tasks, without any sort of burden.
Outsourcing Payroll turns out to be pretty cost efficient as maintaining an in-office payroll team can be expensive for several reasons.
Outsourcing payroll reduces a lot of risk, as they provide expertise with labour law they also handle tax deduction or any sort of late filings, which helps an organisation to hold them accountable and responsible in situations of any misconduct which reduces risk. Payroll providers use advanced technology to minimize errors and risks.
Many big companies and organisations Outsource payroll as with great numbers the workload increases too, in such situations managing payroll can become pretty challenging. Outsourcing provides better scalability for not only big companies but also to rapidly expanding companies.
Advantages of Outsourcing Payroll:
Outsourcing payroll saves up time as processing payroll is long process and requires expertise along with knowledge of taxes and compliance.
The organisations that provide outsourcing for payroll are expertised in their field and are well aware of the available technologies that can simplify payroll processes. Other than payroll they are well versed with labour laws which is why they can help a company follow them.
By outsourcing payroll, organisations and businesses can easily avoid purchasing payroll softwares, staff training and penalties(if any) around payroll.
With the use of professional payroll providers, users can completely trust and use the secure systems and also encrypt sensitive employee and company data.
Outsourced payroll services are pretty flexible as they include options to handle international payroll, handling bonuses which makes them pretty adaptable.
Disadvantages of Outsourcing Payroll:
Even though outsourcing can be pretty cost saving, some additional or unexpected fees or charges for services may apply. It is possible for the outsource company to apply extra charges on customisable services.
Sharing important personal data of employees such as bank accounts and other details along with the company data with a third party might not be as safe.
There is a possibility of a company becoming dependent on their outsourced payroll server more than needed which may become challenging for servers to deliver the desired services.
Outsourcing payroll involves a third party which means relying on an external power, which many times leads to lesser control over payroll procedures.
Some of the outsource payroll providers might not involve full customisation of their services to deliver the specific needs of the client.
Outsourcing payroll is similar to heads and tails of a coin, it has its own pros and cons. Many big Companies and Organizations involve outsourced payroll to reduce cost , save time and bring expertise to the table. Small and emerging companies and a lot of startups can use outsourced payroll as it will reduce one of their duties and help them to focus on better and more important issues in their company.
Blog 45: Write a blog on “how recruitment is different from selection”.
Recruitment is a process where a candidate or job seeker applies for the position/job and are assessed on the basis of their performance in the process. Recruitment begins from the very identification of a vacancy and then is followed by attracting the potential candidates to conduct tests and interviews.
Whereas Selection is of evaluation. A person is judged based on their performance during the rigorous process of recruitment and Hirers are supposed to identify the best out of the pool of applicants.
Selection and recruitment are different in several aspects:
Recruitment Aims at creating a large pool of potential candidates, furthermore it deals with identifying the best candidates by carrying out several stepwise processes. Recruitment processes usually involve identifying vacancy, defining a job description, and bringing application through advertisements.
On the other hand, selection aims at bringing in the best talent from the pool of applicants based on the results of recruitment processes.
Recruitment process is solely focused on dealing with the quantity of applicants. Whereas selection is based completely on the quality of talent of the selected candidates.
Recruitment can be a rigorous and lengthy process. It may take a while for hiring teams to begin and end the whole process of recruitment. The process begins from defining the job description for the vacancy to delivering a follow up message to the selected and not selected candidates. Recruitment involves activities like advertising, job postings, campus drives and sourcing in potential candidates.
Selection is simply the outcome of recruitment. Follow up is usually performed after the selection process. Selection involves activities like resume screening, conducting interviews and tests and then final selection based on the previous remarks.
When discussing hierarchy, the recruitment process gets the priority as it is the initiative and recruitment is followed up with selection. Selection involves all the decision making tasks whereas recruitment involves action based activities.
The basic goal of both processes is almost the same: determining the best from the lot. Selection is a process of less duration meanwhile recruitment is a detailed process. Recruitment ensures a great pool of potential candidates and correspondingly selection ensures a final lot of best candidates.
Both selection and recruitment are important processes. Recruitment is an initiative and on the other hand selection is a result. Recruitment can turn out to be more expensive than selection. Recruitment is a broad outreach-focused process while selection is a narrow decision-focused process.
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