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Human Resources

The advantages of modern HR and payroll outsourcing

By Justyna Trochimiuk, payroll manager at ASB Poland Sp. z o.o.
Header justyna trochimiuk asb poland


HR and payroll outsourcing is a strategic tool used by companies to improve the functioning of the personnel department, as well as the entire enterprise.

The increasing use of outsourcing by Polish and foreign companies and the development of technologies have had an impact on the upward trend of this services market. Other favourable factors to this trend are the fact that well-planned and implemented outsourcing significantly reduces employment costs and allows customers to access specialists’ knowledge and modern technological solutions.

A characteristic feature of the outsourcing services market is its diversification among the companies it serves and in the range of services offered to contractors. Most often, newly created companies that don’t have specialised internal structures decide to use outsourcing, as well as small businesses that can’t afford to hire specialists. Other typical clients of outsourcing include companies with a multi-faculty structures and restructured companies. This does not mean, however, that outsourcing is not possible to implement in other organisations.

One of the main factors affecting the dynamic development of HR and payroll outsourcing is the development of technologies that allow for optimisation and the automation of work. Thanks to this, the internal resources of the company are released, so they can be focused on other, core, activities.

Online outsourcing enabling the entire HR and payroll process with the use of modern IT systems is already the standard in cooperation between the client and the service provider. Everything is computed from the beginning of the employee's employment, through the entire term of the employment contract, up to parting with the employer. Self-service portals offered by service providers are now increasingly available in the mobile-application version. These improve the work of the personnel department as well as allowing employees direct access to their data. There are all kinds of e-services now available, such as an electronic system of planning and registering work time, electronic registration of absences or settlement of travel expenses.

Through such a portal, the employee also has the option of applying for holiday leave online, printing a pay slip, information about employee`s social contributions (IMiR) and PIT (tax forms), as well as an overview of the working time schedule and its current implementation. On the other hand, the employer has a preview of information related to the employee's employment history, conditions of the currently signed employment contract or the validity of medical examinations and health-and-safety training. An additional convenience is the system of email notifications informing users about the necessary actions to be taken and the possibility of using various types of reports. Self-service portals facilitate internal communication between departments and employees, improve daily and routine tasks, allow quick access to data and reduce the number of inquiries addressed by employees to the HR department.

An important reason why HR and payroll outsourcing is gaining popularity is also the widening of the range of services offered by contractors and the greater potential of employees hired in them. Other, increasingly more frequently outsourced functions are, for example, outsourcing the administration of the Social Benefits Fund or ZUS amendments. In other words, the outsourcing of the so-called knowledge processes indirectly related to payroll calculation and staff administration. Employers from outsourcing companies can expect professional advice in the scope of their duties and authorisations, perform staff- and payroll reviews, conduct procedures for firing employees or monitor and analyse remuneration.

The shaping of new trends is also visible on customer's relationship with the service provider. The traditional model of performing only specific tasks, commissioned by the client in favour of individual cooperation models changes in the specific nature of the company, as well as carrying out the whole process of outsourcing implementation, including the management of employees’ career path. Customers who already have experience with outsourcing HR and payroll generally report positively about their impression, which certainly increases the interest in this service sector. Effective HR and payroll outsourcing today is a partnership between the parties, in which the service provider not only fulfils but also exceeds the requirements, set by the client.

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