Payroll Provider in Spain
There are many prejudices related to payroll outsourcing. The most common is to think that “payroll outsourcing is not for my company”, so we want to clarify what kind of organizations should, or not, choose to outsource.
But what type of companies is recommended? Does it depend on the size or the sector of activity? The reality is that there is no indicator that can tell us what to do, but a set of factors that must be taken into account. If you feel identified with any of the scenarios that we expose below, it is very likely that you should outsource the payroll process:
The workload in the Human Resources department
The HR departments that are consumed by administrative work are unable to boost the productivity of their organization. They also increase the possibility of errors and administrative penalties. All this has an associated cost difficult to measure. A study by the PwC consultancy ensures that only 37% of the real costs are visible, leaving the rest camouflaged (among other reasons because they are linked to other departments, such as Finance or Systems).
Managing people is one of the key elements for business success. However, it is a task to which many Human Resources departments do not pay enough attention because they have to focus on administrative obligations that consume a lot of time (up to 75% of the total) and that divert them from their main function.
If the Human Resources department is incapacitated for functions that add value to the organization, it is time to outsource administrative processes, starting with payroll and labor management to Spain Payroll Providers. If, on the other hand, the department is already working on functions such as the attraction of talent and employer branding, personnel analysis and performance evaluation in addition to dealing with payroll, then the situation can be maintained.
Lack of specialization and legislative lack of control
Legislative changes are common and sometimes it is difficult to be aware of the current regulations. Spain is ranked 9th in global payroll complexity. To manage the entire remuneration, quotation and communication process, a degree of specialization is required, which you will only find in a Spain Payroll Providers that guarantees compliance and validity of your actions.
This is especially important in entities that have been fined or sanctioned previously for errors in contributions or taxation of employees. If it has already happened to you or you are afraid of incurring bad practices, you need to outsource payroll management to avoid future sanctions, guarantee accuracy in calculations and ensure objectivity.
In addition, with the arrival of regulatory frameworks such as the RGPD, the management of the data must be carried out under exhaustive control. Ensuring confidentiality and security have become priorities in personnel processes.
Costs associated with payroll management
– Salary cost of specialized personnel (HR and treasury).
-Training of that staff.
-Software, technology and maintenance
-Time of attention to the employee.
The uncertainty of personnel management costs disappears to a great extent when outsourcing the service to Spain Payroll Providers. With a single quota, flexible and that adapts to the needs of the organization depending on your situation.
Need to promote digital transformation
For an organization that is in the process of digital transformation or wants to start it, its priority should be to optimize processes. That’s what digital transformation is about, to minimize the cost of a process, whether through automation or outsourcing. Companies must understand that digital transformation is not optional, if they do not drive an internal change, they run the risk of disappearing due to the appearance of more efficient competitors.
If we look at the digital transformation of human resources, the first step should be to reduce administrative processes. Then payroll outsourcing with Spain Payroll Providers takes an absolutely critical turn. The personnel department should focus on innovation, collaboration, internal communication and implementing new ways of working. And for that, any administrative friction of the 21st century must be eliminated.
Which entities should bet on payroll outsourcing?
It is clear that payroll outsourcing has financial, operational and strategic advantages. If we add that the legislative and technical demands have increased, more and more organizations opt for outsourcing with Spain Payroll Providers. It is true that outsourcing is a cost that for some organizations is a brake when hiring a provider. And although the rates vary from one to another, it is important to take into account that it offers security guarantees (compliance with the LOPD, GDPR, and ENS) and has the necessary expertise to not miss the election.
In the end, the decision to outsource must be made between the General Management and the Financial, HR and Technological departments. Placing the workload on the table, the objectives of personnel management, digitization as well as trying to assess the current internal costs.
If you think that your organization outsources the payroll is the best option we invite you to know the services that our Digital BPO ecosystem includes.
More information: www.payrollinspain.com