Small and medium-sized companies account for the majority of businesses worldwide and are important contributors to the global economy. While some of these companies are thriving in recent times, there are many challenges that they face to sustain and prosper in the future. According to reports by the U.S. Bureau of Labor Statistics, 20% of small businesses fail during their first year, 50% end by their fifth year, and the number increases to 80% by the tenth year.
With fierce competition in the market, Human resource management systems (HRMS) and payroll outsourcing play a pivotal role in the success of small and medium-sized enterprises (SMEs).
The existence of SMEs is largely dependent on their human resources. Human resource management is a distinctive approach to employee management which seeks to obtain competitive advantage through the strategic deployment of a highly committed and skilled workforce, using an array of cultural, structural and personnel techniques.
A survey conducted by CII claims that 20% of medium enterprises and 80% of small enterprises still don’t want to invest in HRMS and payroll outsourcing due to budget constraints. The consequences are that they cannot hire the right employees or retain them for long. Many common business problems and challenges are addressable. Employers need to take a step back, reassess their pain points, and rethink their strategies.
How does HRMS and Payroll Outsourcing benefit SMEs In India?
Simply put, HRMS is suite of software applications used to manage human resources and related processes. HR professionals are the primary users of HRMS; however, the technology can also be beneficial to managers and other executives. HRMS offers several advantages such as improved accuracy, precision, productivity and less time-consuminas well as delivering an efficient user experience.
There is a common misconception among many small and mid-sized companies that outsourcing payroll processing is something that only big companies can afford. Payroll Outsourcing is made available for many SMEs by dedicated payroll management firms such as TopSource Worldwide.
Outsourcing simplifies business operations and frees up managers and employers to focus on core responsibilities. Outsourcing payroll saves time otherwise spent on calculations, tax deductions & filing, creating financial reports, etc. Outsourcing has multiple advantages and it can make life easier in small and medium enterprises.
In this post, we will be discussing the benefits of HRMS and payroll outsourcing for small and medium enterprises:
Manual processing is prone to human error. Automated systems require negligible human intervention, eliminating possibilities of errors. This helps the employers and HR managers focus their attention on core business activities. It saves your organization from facing heavy fines or penalties due to payroll errors. An integrated payroll system ensures that HR managers have all-time access to full transaction records whenever needed, which eliminates the scope of fraud and allows better system checks.
Efficient use of time
SMEs can benefit from automated software instead of spending hours on an Excel sheet trying to calculate payouts. The software improves accuracy and saves a lot of time and effort for the HR team. HRMS and payroll outsourcing helps you deal with compliance issues, overtime, and labour costs and helps companies to make effective decisions on-time.
Improves the recruitment process
An effective HR management software makes everything digital and employee-centric. Employee management software can help you attract the most talented professionals to your organization. Furthermore, they can help you to integrate with social media sites and other job portals where most candidates prefer to see the best available jobs for them. HRMS also streamlines the recruitment process by assisting in onboarding, screening, interviewing and training.
Adopting HRMS and payroll outsourcing systems significantly reduces the use of paper. It standardizes processes like personal information, employment history, education, certifications, and compensation information. It also saves time spent on gathering necessary information in one place. Payroll software systems also protect data from hackers and fraudulent users by encrypting it.
Cloud-based payroll management systems are accessible anytime, anywhere, in real-time. This reduces infrastructure costs, speeds up payroll processes, and reduces procedural delays. Real-time payroll management systems help managers to connect with employees much faster and assists in reviewing an employee’s work. These systems are also beneficial in providing employee feedback, which helps make important decisions during the appraisal stage.
Payroll compliance can potentially impact employees in terms of taxes, social security contributions, welfare benefits and pensions. Payroll outsourcing can help you to achieve payroll compliance by mitigating such errorsas well as your goal of legal compliance and keeping you updated with changing statutory requirements. This saves the HR professionals the trouble of tracking statutory updates and avoiding fines and penalties.
Increased employee independence
A payroll management system increases the independence of employees with the aid of a self-service portal. This portal assists in managing attendance, leave requests, updating personal information, and viewing salary details, bonuses, tax deductions, etc. The Employee self-service portal significantly reduces the number of payroll-related queries, which further reduces the burden on your HR team.
Adapted to your business needs
Every business has different requirements and the requirement for payroll processing can be local or global. An efficient payroll management software is equipped with features that can be adapted to the business’s requirements. As a small business grows, more employees are added, so your payroll system should be scalable and adaptable to your company’s growth. Cloud-based payroll solutions offer unlimited storage, self-regulated updates, remote connectivity and more. So, it makes sense to look for a payroll partner that can offer you the latest technology and tools to manage payroll effortlessly.
HR software can reduce the ratio of HR managers to the number of employees. With better software solutions, small businesses now need fewer employees to manage payroll and human resources thus negating the myth, that outsourcing and software solutions are not meant for SMEs. In the long run, these solutions have proven to be cost-effective for SMEs.
TopSource Worldwide supports SMEs with HRMS and Payroll Outsourcing
TopSource Worldwide is an experienced payroll outsourcing firm operating in multiple countries across the world. They have catered to over 1000+ clients and have a talented workforce of 250+ trained payroll and IT professionals. Their approach to improving HRMS and Payroll outsourcing is mentioned below:
- They are dedicated to enhancing implementation by thoroughly collating business requirements (e.g. BRD, data dictionaries, wage type catalogues, etc) and any technical interface documentation.
- They use the latest cloud-based project management and leave management systems to access real-time client data and manage reports, payslips, settlements and deductions.
- They assist in investment proof verification and Form 16/12BA generation to ensure your organization stays legally compliant.
- They also track bonus, ex-gratia, overtime, leave encashment and gratuity calculations relieving your HR managers of these tedious and complex processes.
TopSource Worldwide offers the best HR management systems in India. They can customize their offerings and payroll solutions as per your requirements. The following solutions are well implemented by TopSource to help your business grow:
- Implementing an online Employee Self Service platform to secure tiered access and organise other payroll processes.
- The unique Employee Self Service System helps manage payslips, IT reports, IT declarations, and Form 16s. It is also equipped with an online helpdesk to cater to employee queries.
- They deploy fully automated interfaces to ensure smooth operation.
- TopSource also helps you to stay compliant by preparing and filing returns to legal bodies, managing multiple forms, assisting new joinees with A/C opening, and assisting employees for withdrawal or transfer cases, to name but a few.
How does your business benefit when you choose TopSource Worldwide as your payroll partner in India?
- Significant cost-saving
- Payroll errors made by manual processing are eliminated.
- Highly experienced payroll and IT professionals.
- Exceptional coordination with your in-house HR managers and open communication.
- Reliable and user-friendly leave management system
- Increases payroll accuracy and considerably reduces payroll processing time to speed up decision-making.
- Compliance with local and global regulatory bodies.
Payroll processing in India has become highly competitive. With the number of outsourcing companies available in the market, you could feel confused while choosing a payroll provider. If you’re looking for the best payroll processing company in India. TopSource Worldwide is one of the most trusted partners in India. With TopSource Worldwide’s global reach, immense and varied experience, and robust IT infrastructure and systems, you have a talented payroll partner onboard. TopSource has made payroll outsourcing extremely efficient not just for large enterprises, but for SMEs too. Contact the best HR management system in India, your HR professionals will thank you for it.