Advantages of outsourcing for every business in “New Normal”
As a consequence of the global pandemic, there is great uncertainty in the business climate all over the world. Regardless of the size of the organization, businesses are on the lookout for ways to control costs, increase productivity, and boost revenue.
And in order to achieve the above, it is extremely important to have highly engaged and motivated employees. HR function needs to play an even more important role in driving business needs through assisting and promoting employee performance.
This situation demands a highly focused HR team that needs to spend time on counselling, employee engagement, employee motivation and other related activities to support the enhancement of productivity. Hence, now it is more critical than ever to seek outsourcing partners who could take away the administrative workload of the HR team for the foreseeable future until the businesses learn to function optimally in the ‘new normal’.
Irrespective of the kind of business, the benefits of outsourcing far outweigh the disadvantages. For example, an outsourced payroll management service provider can introduce the appropriate technology solution; take away the administrative headache through a cost-effective offering which can provide the HR team more time to focus on strategic matters to support business operations.
Based on the current economic circumstances, we share some ideas to be considered by businesses while considering outsourcing of administrative HR tasks with clear and tangible benefits, adding value to the business –
- Technology-enabled Process Efficiency – many outsourcing services providers now can provide a technology platform at no CAPEX cost to the business while providing services like payroll administration outsourcing. This enables businesses to enhance process efficiency without spending the precious cash they need for their business during this time. It is recommended to choose an outsourcing vendor that can enable technology solutions for the process efficiency of administrative tasks.
- Cash flow Management – cash flow is critical to any business survival, especially during a pandemic. Businesses can consider engaging with outsourcing vendors who can support bankrolling of employee remuneration or components like incentives etc. to support monthly cash flow.
- Employee support and service – outsourcing vendors can not only support the HR team of the organization but also play an important role in providing customer service to the employees for any payroll administration related matters. A reputed and trusted vendor brings value to a business through the knowledge and experience of the payroll experts who are deployed to service the business.
- Data Security – employee remuneration information is highly confidential and is a key consideration while selecting an outsourced service provider. This helps businesses maintain control over information leaks which are easy to come by with internal teams.
- Risk Management & Compliance – statutory and labor compliance are also key factors to be considered for outsourcing key tasks like payroll administration. A reputed outsourcing service provider keeps track of all the changes to the laws and updates the businesses helping them maintain compliance avoiding risks.
The above views are based on our experience and expertise in the area of providing professional outsourcing services in Myanmar since 2015. We, at WinCom, are constantly developing our services to meet the needs of businesses as we all step into the post-pandemic era adjusting to operating within the boundaries of the “New Normal”.