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The importance of payroll outsourcing and why it matters to your business

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The HR department is often the most underrated, under estimated and most misunderstood department in the business world. For others, the HR department just simply sits down quietly in their office and hardly seen going out to interact with employees on work hours. An average employee would think, that the HR department is probably one of the most relaxing job in the business world since they just see the HR officer sit down on their desk… and do nothing other than wait for the scheduled payroll day.

But did you know how payroll is a very important and crucial part of the corporate world? A simple mistake on salary deduction or computation of work hours can lead to a disgruntled group of employees that can cause the work operation of the entire company to be put on halt. Did you know that while your HR officer is busy monitoring your paycheck, they are also responsible on to the minor details that are beneficial to the welfare of the employees throughout their entire work hours of service? From social security benefits, phil health (Health Care in the Philippines), pag-ibig (Housing program for employees) and other salary deductions that actually matters for an employee.

Now imagine, calculating these work hours and deductions times the number of employees in the company making sure that a single cent is always credited to every person accordingly. Not only that, employees demand that their paycheck should be released on time during pay day. Would you like your paycheck to be delayed? Neither do the hundreds and thousands of your co-workers. How would you feel if you received your paycheck with miscomputed salary deductions? You would probably be walking towards the HR office ready to storm the entire place. And so, does the hundreds and thousands of your co-workers. Still want to trade places with your HR officer?

But what does HR officer do aside before the payroll schedule time? The HR officer also overlooks the performance of every employee making sure the working at their 100% optimum capacity. Among many other things, the HR officer has talk to employees who fell below their performance rate and identify the source of the problem so they can find a quick solution to deploy the employees back from their respective departments. Imagine dealing with different employees with different work behavior. And don’t forget – the deadline for payroll is coming up fast! Still want to trade places with your HR officer?

This article is not meant to build sentiments for HR professionals but rather a wake-up call. The great question now lies on the management:

  1. How effective are you lately as an HR professional?
  2. How is the productivity rate of your employees?
  3. Are you on time on your payroll schedule?
  4. Are you experiencing labor unions lately? Do you want to?

Being an HR officer is a tedious work that derives on a combination of psychological behavior and financial expertise at the same time. An effective HR management can lead to good productivity output for the company that can generate more sales and revenues. By outsourcing your payroll programs to a credible third-party company with expertise on finance, your HR management will be able to focus on the bigger things on the business such as the increase of productivity output from the employees as well as solving issues in regards to the employee – employer relationship.

Benefits of payroll outsourcing:


  1. Time saving and enhance productivity
  2. Minimize operating cost and cost efficiency
  3. Security on identity theft and funds
  4. Enjoy the benefits of HRIS (Human Resource Information System) without investing on one
  5. HRIS / Accounting Software system update cost and other technological advancement


Continue Reading Click Here: http://clasensolutions.com/the-importance-of-payroll-outsourcing-and-why-it-matters
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