Things to set-up In-House to establish successful outsource payroll services model

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We all understand the advantages of payroll outsourcing, but we are sure many of us would have a different connotations for the same.

We always face with payroll blues and nightmares to the best outsourcing services. So, then, what and why is it that lot of us do not have a relatively good experience in Payroll outsourcing services?

Let us all understand for any successful payroll outsourcing process, the beneficiary and the service provider, both needs to own the responsibility and accountability.

Advantage of Payroll outsourcing means we have the additional bandwidth of a core & domain expert payroll team, to take complete advantage of outsourcing, we have to adhere to the rules of the outsourcing game.

Here are the key factors that needs to be followed In-House, if an organisation has selected Payroll Outsourcing Services Partner

1. Well defined Payroll Processes with SLA & TAT’s

  • a. Create a process flow with IF / ELSE and YES / NO logic
  • b. Payroll generation rules for Additions / Deductions / Variables / exceptions
  • c. SLA – Create a checklist for maker & Checker for each activity
  • d. TAT – Clear indication for completion dates of each activity
  • e. List of reports / MIS / Letters / documents along with its format required
  • f. How to handle expectations during payroll processing, any hold cases, adjustments
  • g. For every query raised from either side during the payroll process period shall be address with utmost priority & timelines
  • h. Change request in case a new process required to be added, additional reports or MIS required

2. Platform for accurate exchange of data with high confidentiality

  • a. No manual entry for any probability of errors
  • b. Maintain of Audit trail
  • c. Data is transferred through Standardised Payroll Platform [formatted data]
  • d. Troubleshooting & ease of solving problem which may occur due to incorrect input
  • e. Automation & integration with various input & output data
  • f. Access to data with ease amidst a robust security over the payroll platform

3. Review of processes, work done & ongoing enrichment program with the Payroll Outsouricng Service Partner including knowledge sharing

  • a. It is important to keep reviewing, improvising and enhancing the ongoing process. For ongoing success of monthly payroll generation, it is recommended to keep a vigil eye on every month process as if it is the first time. Being complacent & assuming that the payroll will generate without error as a BAU (Business As Usual) is the most dangerous sign of payroll catastrophic.
  • b. Payoll Compliances & rules are subject to change in a dynamic environment, it is mandatory to regularly keep the team abreast with the latest governance & market trends.

4. Complete clarity on scope of outsourcing, which should include scope of problem solving

  • It has been observed & even discussed in many forums that any payroll outsourcing association is successful only if both partners has a clear awareness of scope of work. This is achieved when both partners seat together & write down to clearly indicate the roles & responsibility of each side explicity rather than relying on each other implicitly expecting other party to deliver

5. Consider Payroll Outsource Service partner team as your extended arm

  • The silliest mistake a company does is have a differential treatment towards outsource resources. It is highly recommended to change the culture & view towards outsource payroll resource from being called as payroll vendor to being treated as payroll Partner with elan

6. Contingency plan – for Emergency, advance payroll dates, others …

As we all are aware nothing is impossible, it is just the right way to do the right thing, and every company has to find the right formula to work with their right payroll outsource service partner.

If you have an experience to share & points to add to this list, will be happy to hear back from you.

Please write back to us on or call us on 022 40365432.

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