First of all, you should be clear about the basic capabilities of HR and payroll solution. It will help in establishing your expectations from the service providers. It will also determine how different departments in your organization are going to take advantage of the services. Here are some of the basic functionalities:
- Human resources
The outsourcing agency will automate the daily tasks. They will use the available HR data to identify the latest trends that will help in enabling the strategic decision-making process. With the help of HR and payroll solution, you can reduce the workload of your organization’s administration that will help in increasing productivity.
No matter how highly qualified your account department is, there are always chances of manual errors while completing the payroll process. Even if you are using the latest technology, there will be chances of non-compliance with the latest regulations. With the help of HR and payroll solution India, the efficiency of the core payroll processes will improve. It will empower the employees with flexibility and provide them access to the information related to their accounts easily and quickly.
- Time and attendance
Outsourcing HR and Payroll will help in eliminating manual tracking and data entry. It will ensure accuracy and compliance with the regulations. It will help in reducing the pressure on the in-house departments by compiling data of the diverse workforce in one place.
- Collaboration and communication
With the help of HR and payroll solution, you will be able to provide your employees with a centralized location where they can connect and collaborate from anywhere. It will help in improving the feedback process, peer recognition and flow of company information. Such collaborations help a lot in improving productivity and decrease workplace stress.
- Benefits administration
One of the major issues that the employees face in organizations is that they are not happy with the benefits administration. It is a common complaint that the HR and Payroll departments receive that the employees did not receive their benefits on time. With the help of a payroll and HR service provider, you can eliminate the chances of such complaints. These companies are well versed with the latest technologies to identify and recognize available benefits for each employee and provide them incentives etc. on time.
- Talent management
Outsourcing HR can help with talent management. It helps in enhancing the employee experience and provider flexible learning options. Such a platform helps in improving the communication between the trainer and the trainee by enabling ongoing performance feedback.
- Recruitment and on-boarding
One of the major issues with the in-house HR department is the lack of a standardized recruitment process. It sometimes creates a problem in managing the employee data that may lead to an inadequate work environment. Outsourcing HR will help in standardizing the recruitment process by enhancing the candidate and new hire experience.
- Data and insights
Outsourcing HR and Payroll services help in providing flexible and comprehensive access to real-time as well as historical data. It enables you to analyze and monitor the key metrics, identify trends and offer insights to the strategic process of decision-making.
Checklist to consider before you finalize the right HR and Payroll outsourcing solution
- Every organization has unique needs:
First of all, you need to understand that every organization has unique needs. Even if a service provider has long experience in providing solutions to your sector, there is a possibility that you may need to add or remove some services from the contract. Choosing the right solution depends largely on the uniqueness of your organization. The goals that you have in mind will determine the options you may need. The service provider should also have an option to scale to meet your goals and requirements in the future.
- Size of the organization:
When you are shopping for HR and Payroll solutions in the market, consider the size of your organization. While checking their past experience sees if they are capable of handling solutions for the company of your size. If your organization experiences seasonal growth, the service provider should be able to accommodate the request. The number of locations at which your organization operates will also make a huge difference in the decision-making process. Some service providers, despite handling large clients, are not well versed with the technology to provide services on multiple locations. Also, confirm with the HR and Payroll Services are scalable in the future or not.
- Categories and departments in your organization:
There is a number of departments and categories of employees in every organization. The choice of the service provider will depend on if you hire only permanent employees or you consult and hire freelancers as well. If you have full-time and part-time employees, the service provider should be able to handle the payroll and benefits accordingly.
- Compliance with the regulation:
The service provider should be well informed about the required compliance with the federal, state, union and management rules and regulations associated with your organization. They should know the requirements they need to meet to stay on top of compliance in multiple locations. If your industry has some specific regulations, the HR and payroll outsourcing solution should be aware of it.
- Option to manage workers in field and office:
If your workforce is present in the field as well as the office, the service provider should be able to distinguish between them and manage payroll and benefits accordingly.
Your budget will play an important role in deciding if you can afford the selected service provider or not. Your priorities will determine the cost that you have to pay to the service provider based on the contract. You should also get the information about the additional charges, taxes, etc. that you have to pay for using their services. Please get the information about the additional cost for the HR and Payroll Services that you may need to pay in case you want to scale up your business. You should be aware of the cost reduction in case you decide to scale down your business.
- Industry-specific requirements:
A lot of organizations have industry-specific requirements. The federal and state regulations change for different industries from time to time. The HR and payroll solution for large companies that you are choosing should be aware of the industry-specific requirements and should be able to fulfill these requirements in time. You should be aware of how these service providers operate and integrate their technology into their clients’ organizations. The service provider should be able to provide solutions with an open architecture that allows you to take advantage of its platform without much hassle or time-consuming management processes.
- Mobile capabilities:
The service provider should be able to provide mobile-based solutions to your organization. This may include a platform where employees can check their account information on the self-help portal.
The service provider you are planning to finalize should have a high user adoption rate. The solutions they are going to provide should be easy to use, and the customer care department of the service provider should have the manpower to accommodate questions coming from your employees.
The solutions you are getting from the HR and Payroll outsourcing solution should provide your employees with a platform that will enable them to collaborate and communicate with each other and with the administration. It should be able to track the training processes and performances of the employees, along with recognizing the individuals or groups for their achievements. All the information should be available on the employee records.
- Regulatory compliance:
You should look for a service provider that can help your organization to stay in compliance with the regulations on the federal and state level. They should also have a legal department that can help you in case of any dispute.
Every now and then there are new innovations that enter the market in the HR and Payroll sector. The service provider should be aware of the advancements. They should be able to provide you with the latest and secure technology. A service provider that continues to evolve with the time and technology to ensure the clients also get the regular updates will be the best choice.
Evaluate the Payroll service provider
- Please note that not all HR and Payroll Services are the same. You have to check different aspects while choosing the right one for your organization.
- First of all, check if they have ample experience to work with the companies in your industry. They should have experience in handling clients in your industry.
- Make sure to choose the service provider that understands the people-focused goals of your organization. They should have a positive work culture in their company.
- The service provider should have the capability to adapt and change with the requirements coming from your side. It does not matter you decide to scale up or scale down your organization; the service provider should be able to manage it with ease.
- The HR and payroll solution for medium companies should be able to implement the solutions while keeping a client-focused approach in mind. They should be able to configure solutions based on the organization’s structure and work environment.
- The HR and Payroll Services should include a dedicated customer support department in the company. They should be able to offer a quick response rate. The history of resolving clients’ issues should high. Access to the customer support department should be easy, and there should be multiple channels to do so. Some queries only need a quick chat while some may require a visit by someone from the service provider’s office. In any case, the queries should be solved at the earliest.