Payroll accounting is becoming more complex, and the cycles for legal or operational adjustments are becoming shorter and shorter. Can you ensure payroll know-how in your company in the long term? Concerns about demographic developments, because a lack of employees increasingly pose a risk, are not diminishing. The lowering of the retirement age further exacerbates the situation. The immigration of foreign skilled workers will not be able to solve the problem in the long term. So what alternatives do “business leaders” have?
Strategic HR work is more important than ever
Demographic and social change is causing problems for companies. An ageing workforce, a shortage of junior staff and skilled workers, longer working lives as well as the growing mobilisation and complexity of work require HR managers and managers to focus on the following topics:
- Promoting sustainable corporate culture
- Retain employees
- Expanding leadership in the company
- Promoting employability of employees
- Establishing a work-life balance for employees
- Establish comprehensive talent management
- Making work structures more flexible
- Attracting new employees
- Controlling demographic development
- Set up new remuneration models
This is shown by the current HR Report 2013/2014 by the personnel service provider Hays and the Institute for Employment and Employability (IBE).
More than 70 percent of German companies consider the topic of employee retention to be very important, but they find it difficult to implement measures. An appreciative corporate culture and a good working atmosphere are decisive factors in retaining employees. 96 percent of those surveyed are convinced of this, but only 69 percent have already taken effective measures. The gap between reality and aspiration is large. The topic of reconciling work and life situation is also a decisive field of action for 78 percent, but only 56 percent are actually active in this area.
The HR report once again highlights the difficulties companies have in recruiting. 78 percent are intensively looking for suitable specialists and 67 percent are worried about the search for suitable managers.
These challenges require qualified HR specialists and an efficient HR organization.
The current Kienbaum study “HR 4 HR” also shows that the demands on HR have increased and that there are severe problems in recruiting suitable personnel. The quality and quantity of incoming applications are no longer satisfactory.
For example, it is difficult to find experienced personnel in the payroll accounting sector.
Payroll: Administration or Value Creation?
Payroll processing is complex and becoming increasingly challenging. This means a very high administrative effort that does not leave much time for strategic HR work. Above all, the implementation of permanent legal changes is a reason for entrepreneurs to hand over fee-relevant processes to specialized service providers.
HR outsourcing as a solution on the way to an efficient HR organization
Outdated processes in payroll tie up valuable human and financial resources. Simplifying existing processes is no easy task. In addition, consistent implementation is often very slow. In outsourcing, process optimization / standardization is contractually agreed and a fundamental goal of cooperation. The complex processes are adapted to the actual requirements of the company.
Payroll outsourcing comes with significant benefits. In addition to process efficiency, there is also the personnel efficiency of the service provider. The risk of staff absences is the risk of the service provider. Personnel reserves in one’s own company are no longer an issue. Above all, the aspect of professional quality must be taken into account. The professional level of the staff at an outsourcing service provider is permanently high and always up to date. Cost-intensive further training for the company’s own specialists is no longer necessary.
The outsourcing service provider bears the costs and responsibility for the smooth operation of the HR systems. He is liable for the correctness of his actions as well as for secrecy and data security.
The decisive prerequisite for successful outsourcing is the precise definition of the expectations of the service provider. What are my requirements?
Together, a clear and implementable contract must be designed for both sides, with less extensive but precise service level agreements (SLAs). Clearly formulated and clearly structured, the contract is the basic security instrument in joint work.
In order for an outsourcing project to succeed, the departments involved should be involved in good time. In this way, costs and effort can be correctly estimated right from the start.
Result
Outsourcing can thus be a strategy to counter the shortage of skilled workers. The modern concept gives HR departments the necessary freedom to look into the future.
Read our article “Payroll professionals are also becoming rare” in the current issue of the personnel magazines.
(www.haufe.de/personal)
How do you deal with the shortage of skilled workers? Is Outsourcing Payroll a Strategy for You? – We look forward to your comments!
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