Payroll is a process that involves a lot of calculations and attention to detail as to company laws and legal responsibilities toward the government. Employees are paid their salaries after the deduction of taxes, insurance, and other big cuts. These calculations are time bound and require specialist people. If there is any small mistake anywhere in the calculation, it might reduce the company's profits and put the financial stability at risk; apart from payroll, HR is also responsible for understanding employee performance and monitoring the growth of the employee. According to statistics, 25% of major-league businesses depend upon third-party payroll for this and HR solutions. Staff Augmentation has become the new wave in the business sector which is taking over the workforce needs and other employment by providing simple HR solutions to various industries.
An effective payroll service provided by the company specializing in this process will manage the salaries, other social benefits, and taxes with regard to the company. These processes can be done in a reduced time when outsourced to an external company. Staffing companies in India work with their clients to meet all the legal requirements by paying compensation to the employees. Here are some of the main functions carried out by these staffing companies in India-
- Attendance – Most companies have a system of paid leave and unpaid leaves. It is the job of HR to monitor the attendance of the employee to ascertain productivity. Third-party payroll companies take care of the attendance process and also carry out timekeeping duties.
- Calculations – Taxes and other adjustments to salaries require serious mathematical and critical reasoning. Third-party payroll companies have specialized and experienced accountants who can take care of these responsibilities.
- Training – This might not be a direct responsibility of the staffing companies in India, but these companies also provide time-tested and scientific training modules that can help to build a positive company environment and upscale the workforce.
- Technology – Staffing companies are known for the technologically advanced system that they utilize to provide payroll services. These systems can predict success and can be used to reduce risk during the hiring process.
The expanding market for Staff Augmentation – A Look at the two most important benefits after the pandemic
Staffing companies in India are mainly associated with providing staff augmentation services. Where companies can hire short-term workers who specialize in a certain area to augment the current workforce. By the end of 2022, it is predicted that the outsourcing market, when it comes to hiring external workers, will hit $531 billion. Why such a rise, you ask? Well, there are certainly several advantages that have gone to the forefront after the great recession in 2008 and the Covid-19 pandemic. Two stand out -
- Provides Mobility – With the pandemic, most companies have learned a lesson about providing flexibility to workers and indulging in a flexible culture. It is important to provide mobility when it comes to responsibilities. For instance, staff augmentation helps gain specialized employees from all around the world for a project in the IT industry. That company may not want to employ someone permanently but require assistance or specific skills to complete a current project. This is where mobility comes in handy while chasing the goals of the company.
- Reduces Costs – We have been warned against an impending recession, and our only criteria are reducing costs and increasing profits. The hiring process takes too long and takes up a large amount of money. Staff Augmentation services, on the other hand, can provide us with the right skills within a short time and reduce the amount of money spent on interviews.
These two are the main benefits that are directly related to the impact of the COVID-19 pandemic and what has reduced the mobility of people and endangered the sustainability of the business. There are many other more important benefits of utilizing external staffing companies in India which include getting quality specialists, exclusivity and customizable services, support, and advanced technology that helps the company cope with changes in the future.
The recession might hit anytime, and it is time we think about how to tackle the changes and uncertainties in the future. Reducing costs and utilizing time are the two most important aspects of business development. Here is where staffing companies in India can help you recover from the drought and process change more effectively.