Outsourcing Payroll Management Could be a Stress Buster!

The title may not appear business-like, but stress among large companies is common. For companies under stress economically, or have their arms stretched too far this outsourcing is the only recourse. No company truly wishes to outsource major functions of the business. But outsourcing does make sense when you find it a logical step to alleviate stress or to enhance focus on core activities.  

Outsourcing is like handing over a function to the backend service provider. But while you outsource a non-core function to a service provider, BPO is handed over a core function. Remember BPO is always concerned with international practice and not done domestically.

Thus, outsourcing is done in the case of noncore functions only. The motive behind both is to destress in case of limited resources or to improve profit by sharing a function. Companies facing stiff competition resort to many cuts, and often lay off several employees. Over-hiring is carried out in times of great profitability, it does not appear to be a financial burden during happier times.

When profit declines due to heavy cost burden or due to competition from the rivals the management looks towards apt solutions. The first step that major companies usually take is to lay off. While in modern economies and the developed world "lay off" is easy, it is not so in case many developing economies.  Labor laws can complicate matters after the layoff, and can create unprecedented liabilities.

Hence it is always wiser to hire with caution in many countries where layoff is not an easy solution. Recently we have seen a spate of layoffs by technology companies like Google. Although this act appears all hunky dory, it will not be the case where ever labor protection laws are stringent.

Hence it is always wiser to outsource non-core functions from the very beginning to avoid the saturation tap.  The workforce is important, but a wiser approach that is cautious while hiring can lead to a better future for the organizations.

For most companies, payroll management is a non-core activity. The process requires investment in many power for accounting and that manpower does not assist in core function. Thus, when the going is not good this every down-the-line staff may become a burden. Even though there is automation software like Spine HRMS large companies prefer to outsource payroll management.

Smaller companies can use automation software like Spine HRMS and manage employees' salaries. Spine HRMS is a comprehensive software and is equipped with many features that make it dynamic and holistic.  

Larger businesses and corporates with thousands of employees prefer to outsource payroll management to able companies. For these companies managing employees and HR is the core function and they specialize in that. Thus, companies benefit from the service provider's expertise, reduce employee burden, focus more on core functions and benefit immensely. However, this act should be carried out with caution as there have been cases whence the service provider has not been at optimum best or refused to co-operate.  

 Human Resource Management is Employee Management

The human resource department is for managing employees, and the acquisition of bright and experienced people. In any company, this falls under the HR Department. The department is manned by resourceful people who not only seek acquisition but also manage the people already employed in the company. Thus, HR management is a complex and comprehensive task and very important. The most important function of the department is to acquire staff for management and workforce. Another major function of the staff is to manage employee salaries their perks and all finances related to them. With the introduction of application software and the rise in payroll management services, the traditional mode of accounting is reducing.

While most companies have in-house HR departments some companies outsource this to third parties. These third-party outsourcing companies specialize in employee salary management.  Another option is to automate salary management using application software. Both options are fine usually large enterprises prefer to outsource payroll services to third parties.  There are many benefits to outsourcing. The parent company saves not only the cost and efficiency since the third parties skilled management in their company.  With the burden of managing employee salaries over, they can focus more on their core functions.

Overall Technology market size in India was 1.1 billion USD in the year 2021. With companies changing their business strategies in favor of outsourcing, the growth rate is expected to increase rapidly. The robust marketing technology figures are promising for HR Technology Sector.

Spine HRMS Suite

Spine HRMS software is developed by Spine Technologies based in Mumbai.   The company has also developed software in line with human resource, and enterprise management.

Some of the features of the application are endowed with are:

• ·         Payroll Management
• ·         Leave Management
• ·         Claims & Reimbursement
• ·         Performance Management
• ·         Recruitment
• ·         Visitor Management
• ·         Workflow Supervision
• ·         Attendance
• ·         Time Sheet

The application software is endowed with many useful features. Spine grows along with the industry and keeps to the required specifications. It is regularly upgraded and it easily integrates with MIS And ERP systems. With the development of HRMS and other software, Spine is one of the leading companies in India.  The product is endowed with all features that a Spine HRM system should have. It is customizable, integrates well with MIS, and allows the user to view their salary and breakdown. Employees can change their personal and professional biodata with the knowledge of the HR Department. These facilities are accorded in the EES feature. The PMS feature allows companies to track their workforce performance and reward them accordingly.   

MetavisionTechnology based in Mumbai is a qualified implementation partner. It also provides third-party outsourcing services in Mumbai and all over India. The company is a technology leader and also develops application software like F-1 MIS. It is equipped to provide training and AMC Services to all the products it deals in.  

All About Staffing

Staffing is big business in the USA being a leading economy this does not come as surprise.  It is like job search or recruitment but is more specialized. Major companies seek candidates with diverse qualifications and capabilities and also an ability to gel culturally in their organizations. This workforce solution is provided by staffing agencies with a multifaceted approach using technologies, professional capabilities, and the integration of social media skills. Also, a  detailed understanding of roles and responsibilities is a must for hiring firms in order to partner with major concerns. The right approach and focus on accurate selection criteria accrue from understanding the need of the partner accurately in a cohesive manner.

The capability to carry out a detailed analysis of the candidates is the dominant factor in order to provide the best solution to the partners. Several factors are taken into consideration while evaluating the prospects this would also include past work performance and diversity of the skills attained in the process. The success also depends upon the hold on a particular niche the agency specializes in. In many instances proven experts in that particular field aid in the assessment of the candidate.  

While this could also be called recruitment but staffing differs in the sense that the selection of candidates is based on diverse criteria.  

Professional, qualified, and exceptionally capable employees highly suitable to the organization are much sought after. The search for such candidates is a big industry in the US and subsequently propels the economy through its contribution.  

As per the statistics more than three million employees of staffing companies on temporary and contract basis. More than seventeen million candidates find jobs through these agencies in the US. Albeit not like being a permanent employee the struggle to reach the pinnacle is through temporary job and contract-to-hire basis. Qualified professionals and the workforce have realized that this is a good way to gain experience and develop skills in order to eventually find a permanent placement. 

While permanent employment is the top priority many opt for contract hire or temporary engagement due to flexible scheduling. For many, these opportunities make them more employable and maintain their skill levels intact. 

The staffing industry feeds the workforce in almost all sectors like technical, IT, engineering, administration, scientific research, and health care. Hiring the best talent is a pressing need for businesses since a talented workforce can make a difference between success and failure.

In order to fulfill the need for the workforce there are thousands of staffing agencies in the US spread all over the states. While most of the firms are general recruiters many specialize in a particular sector or niche.