Digitisation and outsourcing

Outsourcing has long been a familiar concept for most companies. In the course of globalisation, keywords such as focusing on the core business, outsourcing non-value-adding work and purchasing services externally are often used. The use of cloud software in IT is another typical example. This trend does not stop at HR: outsourcing is also a trend in the area of human resources.

Security and risk minimisation

One of the most frequently cited reasons for outsourcing in HR is security. It is essential for companies that employees are paid punctually and correctly for their work - an expectation that is also shared by employees. As this responsibility is spread across a small number of people in many companies, there can be no room for failure here. What's more, payroll processing in Switzerland is becoming increasingly complex in terms of both technical aspects and content. New legal requirements such as changes to withholding tax, regulations on short-time working or statistics on equal pay must be constantly observed and implemented. Maintaining the necessary expertise and the right specialists in the company is a major challenge.

Today, standardised systems make it possible to outsource payroll processes to specialists. Companies that have successfully implemented this step benefit from an increase in security, among other things. They no longer have to worry about maintaining Payroll Software, always remain legally compliant and also benefit from transparent and simple cost structures.

However, outsourcing also means relinquishing some of the responsibility and sharing sensitive employee payroll data with the external provider. This can be perceived as a potential risk. It is therefore essential that mutual trust is established and that the partner and the direct contact persons are personally known. Open and transparent communication plays a key role here. In addition, the employees who previously carried out the tasks internally should be involved in the process in order to ensure a smooth transition.

Digitization as a game changer

Digitization has simplified outsourcing in many areas and the coronavirus pandemic has further accelerated these developments. Companies benefit from modern software, especially in the area of communication. In HR, for example, processes can be mapped completely digitally and handled by both parties - internally and externally - via a centralised software solution. Such tools not only enable companies to efficiently digitalise their internal HR processes, but also to significantly simplify collaboration and communication with external providers.

In addition, the maintenance of systems that are often not part of a company's core expertise can also be outsourced. This form of outsourcing is becoming increasingly popular as it saves both resources and costs.

Some providers combine classic HR Services with the maintenance and servicing of the Payroll Software used. From an IT perspective, this allows companies to save costs for hardware, infrastructure, maintenance and servicing. From a technical perspective, they benefit from a modern Software-as-a-Service (SaaS) offering that not only guarantees legal compliance, but is also continuously developed further. SaaS thus offers both innovation potential and the security of knowing that the software used is always up to date.

The cloud as the key to success

The innovation potential of SaaS solutions (Software-as-a-Service) is particularly high. Modern cloud solutions pursue approaches that not only benefit companies, but also their employees. In comparison to conventional on-premise HR systems, which were often not very focused on the needs and wishes of employees, modern cloud solutions focus specifically on an employee-centred design. The latest findings show that companies are particularly successful and sustainable when they view their employees not just as a resource, but as the centrepiece of the company. However, many companies have neither the necessary IT expertise nor the capacity to develop such advanced IT solutions themselves. This is where established cloud solutions come into play, enabling easy implementation while offering state-of-the-art technology and ongoing innovation.

What is the aim of outsourcing?

If we look at the prerequisites for successful collaboration with external HR service providers, one key question first comes to mind: Does the company have a clear idea of which tasks or processes should be outsourced - and why? It is equally important to clarify which simplifications or benefits are to be achieved through outsourcing. These can range from cost savings and overcoming staffing bottlenecks to compensating for a lack of internal expertise.

In discussions, Customers often express the desire to minimise risk. As soon as the fundamental questions have been clarified, the focus is on the operational integration of the desired service. Here, it is essential to invest in trust and transparent communication from the outset. This can be supported by a modern HR service delivery solution, but must always function smoothly and in partnership. The processes should be seamlessly integrated in both organisations. In practice, many companies start with a modern SaaS solution in the Payroll area. This offers an easy way to take the first steps towards Digitization and optimise processes. If trust in the provider grows over the years and the solution works smoothly, it is often only then that the step to full outsourcing is taken.

Demand fuelled by corona

The demand for payroll outsourcing has been rising for years and has increased even further in recent months, fuelled by coronavirus. A few years ago, this development would have been almost unimaginable, but confidence has changed.

There is a growing realisation that payroll processing is a service that can be purchased from external specialists. It is a repetitive and administrative task that requires more expertise the longer it takes. The above-mentioned risk assessment of a company has led many customers to consider and successfully implement outsourcing. From the company's point of view, one point is ultimately decisive: that employees are paid punctually, reliably and correctly every month.