5 Reasons Why Choosing HR Payroll Outsourcing Over a Full-Time HR Department Is Best for Business

From ensuring employee wellness and safety to ensuring business continuity hampered by legacy systems, HR today is the focus of attention in the post-pandemic world. Companies today need to focus singularly on driving value from talent.

In India, blue-collar workers are in high demand. The workers too have heightened expectations from employers. Unless HR teams deliver top-notch employee experience, businesses will suffer.

Research shows that companies are 1.3 times more likely to report organisational outperformance when HR enables a positive employee experience.

What should you do if you don’t have an in-house HR team, or have one that cannot meet employee and organisational expectations?

In that case, companies must think about outsourcing HR and payroll functions.

People-centric technologies can help HR personnel to digitise and automate repetitive and time-consuming tasks, right from onboarding to benefits administration. This provides HR employees with the time, space, and resources to focus on more strategic tasks.

Moreover, HR payroll outsourcing has huge cost benefits for small and medium-sized employees who can’t afford a full-time HR department to manage its blue-collar workers.

Let’s understand 5 more efficiencies of HR payroll outsourcing.

1. Addressing the Blue-Collar Hiring Problem

Demand for blue-collar workers exceeds supply in many sectors. With no access to a verified talent pool locally, companies struggle to hire verified workers at scale. This impacts project timelines and can also hurt bottom lines.

The cost of hiring also increases. Outsourcing this HR function to a technology-first, people-centric third-party provider can ensure an optimal hiring process.

State-of-the-art sourcing platforms fuelled by large amounts of candidate data comprising vetted and skilled workers can make hyperlocal recruiting drives a success. It can enable simple and customisable workflows to make the entire process efficient, smooth, and streamlined.

2. Better Regulatory Compliance

Compliance is one of the key reasons for HR and payroll outsourcing. Businesses must adhere to state and central laws when it comes to holidays, wages, work hours, benefits, and more.

Having a technology platform with embedded provisions for compliance-related activities helps companies to avoid litigations and hefty penalties. What’s more, they don’t have to hire separate subject-matter experts for compliance management.

3. Tracking and Planning Employee Attendance

Manual errors in tracking worker attendance and time can lead to incorrect wage calculations. This creates huge dissatisfaction among employees and higher attrition levels.

Manually keeping track of employee identity and planning shifts can be taxing. There is a risk of data loss and higher operating costs.

By outsourcing attendance tracking and payroll, companies can help admin and HR teams to cut corners, save time, and ensure transparency. A technology-driven, third-party HR platform can enable companies to:

• Customise the payroll system
• Configure payroll and holidays for multiple sites
• Seamlessly integrate with existing HR software
• Import previous rosters with a single click
• Auto-generate critical reports
• Calculate overtimes accurately

All of these lead to timely wage disbursals that help in employee retention and higher productivity.

4. Improved Communication

One of the most notable benefits of outsourcing HR and payroll functions is the scope of secure cloud-native systems.

Such platforms offer a clear view of all processes and stages. For instance, admin personnel, or department heads can get a complete view of the hiring and onboarding funnels.

Such systems help improve communication and lead to timely decision-making. There is better operational efficiency which is critical for organisational growth.

5. Benefits Administration

Today, employers must offer blue-collar workers social benefits to comply with the government’s wage and labour regulations, as well as to ensure retention.

The HR team has to manage benefits such as insurance, workmen’s compensation, financial assistance, and more while protecting the companies’ bottom lines and ensuring employee satisfaction.

By outsourcing HR functions, they can deliver customised benefits packages and manage the most crucial and challenging parts of benefits administration right from enrolment and eligibility management, to compliance.

The New Age Workforce Demands Better HR Management

The nature of the workplace is changing, for the better. The blue-collar workforce is finally being seen under the lens of development economics, which in the long run will help companies to grow at scale. The quest to build a protected and productive workforce is a top priority for companies now.

BetterPlace empowers HR teams to derive more value from the blue-collar workforce through state-of-the-art technology solutions. Contact us to learn more.