A study by the multinational ADP prepared by TNS warns that large and medium companies that decide to outsource their payroll processes analyze, before their election, seven different variables: THE PROOF OF 7.
THE PROOF OF 7
-A study by the multinational ADP prepared by TNS warns that large and medium companies that decide to outsource their payroll processes analyze, before their election, 7 different variables.
- Payroll Advisor in Spain initiatives within large and medium-sized companies originate in the Human Resources Department.
-Downloading administrative work to the HR department is one of the main reasons why a company makes the decision to outsource the payroll.
The choice by large and medium companies of a Payroll Advisor in Spain solution -both its acquisition and outsourcing of its management- for its employees usually follows a demanding selection and search process, according to the study on Human Resources and Management Payroll prepared by ADP in Spain. Most of the companies consulted in this study - national and multinational companies with more than 200 employees and a turnover of more than 12 million euros - ensure that 7 decision-making criteria are involved in their decision-making processes, such as after-sales service. company providing this service, its accessibility, its storage capacity and its adaptability to legislative developments, among others. The majority of the professionals who have intervened in the study stress that this decision originates in the Human Resources department of the companies and that the areas that most intervene in the final process of choosing the payroll outsourcing solution are Sistemas, Operations, Finance and General Management.
The study was carried out during the second quarter of 2005 and its preparation involved the participation of professionals integrated in the areas of human resources, financial management, general management, and systems and computer management. The participating companies are multinational companies with offices and / or production centers in Spain and medium and large companies with national capital.
According to this study, the main aspects that motivate companies to immerse themselves in a process of Payroll Advisor in Spain processes and that they consider the most important when making a decision are:
The optimization of the resources of the human resources department. The company downloads, through the outsourcing of the process, a mechanical work, which does not bring any added value to the company, and can thus dedicate more resources and efforts to its own tasks.
Another reason why a company decides to acquire this type of service is cost reduction. Also, the fact of not having "papers" to store, or keep confidentiality allows the company to respect the data protection protocol.
In the same way, another fact that the companies consulted take into account, and that can be decisive in the decision-making process, is the technology on which these potential suppliers are supported.
Thus, the seven most significant reasons for outsourcing the payroll service are:
THE TRIAL OF THE SEVEN
Optimize Resources
Cost Reduction
Reduction "Paperwork"
Technology Used
Possibility to establish degree needed service
Mechanical work download
Quick and effective solution
As for the departments involved in the decision, considered by the human resources professionals of all the companies consulted, as "transcendent and strategic", it incorporates professionals from the following areas: HR Management; Department of Computing or Systems and R & D Department. The financial, administrative, accounting, quality and operations sections among others, are also usually involved in determining the degree of compatibility between the different applications used.
The professionals surveyed agree that the factors that most influence the evolution towards the outsourcing of payroll processes are, for example, that the chosen company offers a good after-sales service support, which is constantly updated not only at the level of software, if not also of legislative changes and that adapts to the needs and the form of work of the company. On the other hand, it is equally essential that the software used by the supplier allow the growth and expansion with other modules of the company, which allows to save the maximum of historical data and that the price is adapted to their needs.
The main places to which the HR directors refer when looking for a provider are, according to the ADP study, the congresses and professional fairs of the sector; Internet; documentation that arrives spontaneously to the company; visits of commercial companies providing these services, as well as contact with colleagues from other companies that have different solutions implemented, etc.
However, the study also reveals the main reluctance that arise among workers of a company when it decides to outsource their payroll processes. On the one hand, this decision entails a change of mentality because traditionally this task has been developed from the company itself. On the other, this situation is understood as a trend marked by the United States. that technically brings benefits of discharge of work to the department of Human Resources or Personnel, but that often generates fears that are reflected in an exposure of preconceived inconveniences.
What most concerns the professionals surveyed is the loss of control of these activities and the lack of agility due to having to depend on third parties. They fear that there is not a proper dialogue between the two companies or that the complexity of their company's payroll makes them think that they would need an exclusive department in the external company and for that reason they do not even consider outsourcing.
More Information: www.payrollinspain.com
