When a business leader realizes that a certain problem has been repetitive then, it eventually increases the risks therefore, it’s time to look for a long -term solution to keep moving ahead. However, for a non-core function such as payroll processing, it is better to revisit your options by hiring an external party to perform the job especially when it has been proven to be a cost-effective solution in the business sector.
The industry sees growth increase in HR and payroll outsourcing from various market sources including businesses that need to adopt alternative solutions to stay compliant with regulatory changes. Payroll administration equates to complications, thus, it requires more time and resources at a varying rate. Also, foreign companies that plan to expand in the local market or set up a remote team, human resources, and payroll outsourcing companies in the Philippines can help you get started right away.
Payroll Service Providers in the Philippines
So, how do you find the right payroll service provider? Before you speak to the vendors, you must have a clear set of objectives as to why you want to contract out payroll management by looking at the different aspects of your business that cause non-revenue generating problems. Does it help you cut time, money and resources? Does it require you to employ or retail full-time HR and payroll professionals? Are you experiencing headaches dealing with government compliances?
There’s a lot of outsourcing vendors in the Philippines that can offer a different scope of payroll services so you only engage with the one that suits your requirements and deeply understands the culture of your organization. Some providers only specialize purely in payroll processing. They collect data and simply calculate and process salary disbursement. But you can also engage with a partner that can provide tailor-fit solutions like Grupo BPO. Grupo BPO’s HR and payroll outsourcing business unit provides end-to-end services that can cater to companies of any size, shape, and geography.
Okay, I’m convinced, so what are some of the most important questions to ask when dealing with payroll outsourcing companies in the Philippines.
1. What services do you provide?
Before dealing with vendors, you may already have an idea of what are the services they do offer by visiting their website which mostly is too generic to answer your needs. Now, when the have identified your requirements, you, of course, can’t wait to listen to what solutions they have on the table rather than just hearing again what you’ve already seen on their website. Did they cross off an item on your list? So what are the signs of a potential partner? A good indication of a good service provider is when it uses its services that put you in an actual situation while it let you visualize things that meet your business objectives and ultimately, reap the benefits of the services.
2. How do you track employee time and attendance?
There are available tools and applications to monitor employee attendance and productivity such as Time Doctor. Grupo BPO is also using LogNWork, a timekeeping and reporting app bundled with its HR and payroll management services. But for those payroll service providers that conduct manual time tracking, they have available staff to perform most of the job for you thus, it saves you another time-consuming task you can already utilize for other important matters.
3. Do you handle the filing of taxes and benefits?
A typical payroll specialist firm in the Philippines provides compliance management for the taxes and benefits of your employees. But there are also payroll solutions providers that only focus on basic payroll processing and salary disbursement and do not handle such tasks. Also, the rise of outsourcing has increased the number of players with specialization may exclude dealing with complicated statutory compliances and labor laws. Make sure that a vendor can handle taxes and benefits remittances such as SSS, PhilHealth, HDMF to avoid experiencing headaches and facing government penalties.
4. Is your payroll platform user-friendly and how easy to set up?
It is important nowadays that a service provider has the latest cutting-edge tools in its technology stack to provide easy and convenient access to clients and its employees. Know how fast and easy it is to set up. Will I be able to access it on multi-screen devices anywhere I go? If that answers yes, then it’s awesome. But don’t get too amazed quickly when one does have such fresh technologies because there are tasks that may not require automation just yet. What matters most to you is when the job gets done before or right on the deadline.
5. How safe and secure are your services?
One of the drawbacks of outsourcing payroll function is businesses are being protective of their company data and still lack the confidence of sharing sensitive information with an outsourcing firm. Ask the vendor how they handle and keep data with utmost safety and confidentiality. How do they manage access to their data center? You’ll also want to know if they have installed anti-virus, firewall, advanced encryption technology or other cutting-edge security system to keep data from unauthorized access of employee and payroll information.
6. How much does it cost us for your services?
In general, the pricing structure of services in the Philippines is relatively cheap. Find the common services they provide and see if they offer the same pricing. There may be vendors that offer above industry rates so better make an assessment first of their past or existing clients before you seal the deal with the vendor. Were they able to deliver quality output efficiently? Sometimes, a little over the usual pricing may not be too expensive for the quality of services you can get. At the bottom line, does the proposed pricing scheme meet your budget in hand?
7. Can you scale as we grow?
Identify which vendor is prepared to grow with you. Assess what they can do as you expand your business. Do they have access to the resources required at a certain rate? In the Philippines, it is easy to grow and scale any type of business as you get access to the rich talent pool and low-cost services so you get to maximize time and resources and get the most of every dollar you spend.
8. Do you provide add-on services?
As your business grows, you may need help in expanding your team such as hiring additional people, acquiring office space, infrastructure set-up and full HR management support. Another time and cost-saving for you instead of shopping for another vendor if these services can be acquired from your service provider.
9. Do you provide customer support?
Some payroll solutions companies lack the provision of customer support this, it frustrates a lot of business owners when issues are not addressed and solved right away leading to hampering their operations. Verify with the vendor if their support is available during and after work hours. Are they going to provide a dedicated account manager to take on every concern for the entire contract duration? When an outsourcing firm has a high retention rate that’s because they put customer satisfaction on top of everything.
There may be additional concerns along the way but these questions can be your guide in starting your journey to finding the best payroll outsourcing company in the Philippines.