Practice has shown that successful companies are those with “lean & mean” administration and paperwork to focus and channel all proper resources into their core business. In “The World is Flat”, the writer Thomas L. Friedman describes outsourcing one out of ten factors to flatten the world as it can help business concentrate on core business operation, cut administration cost and ensure the quality of the services outsourced.
Especially during the time of crisis, outsourcing is number one priority multinational companies think of when they wish to defend their position in the market, let alone expand and develop. Why not think of outsourcing your payroll system right now?
Let’s look into an analysis to see how you can cut administration cost.
Given that you are employing a C&B specialist and you have to pay a gross salary of 1,000 USD a month for this position.
Actually, you have to pay an estimated total cost of up to 1,720.57 USD as you have to fulfill additional cost regarding: - Bonus & Perks
- Training & travelling allowance
- Insurance
- Administration like office space, facilities, stationery, parking, etc
In addition, you have to raise salary yearly. Besides, you have to manage the information that could be leaked out, control the risks of security of infrastructure and take time to deal with Authorities in term of documentation. When that employee resigns, you have to deal with miscommunication, severe errors, workflow interruption or corruption occurring during or after the transfer period due to objective and subjective aspects of employees involved, which will affect all of your employees’ benefits.
If outsourcing your payroll system, you will only have to pay a fixed fee that is within your budget and control while not worrying about the mentioned above issues.
Payroll Outsourcing: A solution to cut cost and improve effectiveness and efficiency