This way, your company can lower personnel costs – and reduce vulnerability
Published: March 6, 2023, 10:40 am Updated: March 6, 2023, 10:47 amPersonnel costs are the largest expenditure item in many companies. It doesn’t have to be that way. By outsourcing all or parts of salary and personnel administration to specialists, that cost can be significantly reduced. At the same time, vulnerability is reduced when payroll management no longer depends on the presence of an individual payroll administrator. – Many ask where the breaking point is where it becomes profitable to outsource payroll and personnel administration to specialists. In fact, it always pays off. Because it is incredibly difficult to find the right balance where you get the most from an employee without the person working too much, says Björn Jareblad, CEO of Flex Applications, which specializes in payroll outsourcing and offers a complete cloud-based personnel system.
Costs are reduced
More and more companies are therefore choosing to entrust all or parts of their payroll and personnel administration to specialists in this type of service. The fact is that payroll outsourcing today is one of the largest and fastest growing outsourcing services. – One important reason is precisely the costs. If you outsource payroll processing, you are only responsible for the costs of the service you have signed up for. You pay a fixed cost per salary specification and don’t have to bear all the peripheral costs that come with having your own staff, such as sick leave, meetings and training days, says Björn Jareblad. You also don’t have to worry about recruiting and training new staff or substitutes, something which is both time-consuming and costly for the company. You can also save on staff care, insurance, equipment and offices. Björn Jareblad is CEO of Flex Applications.
Alone is not strong
An outsourcing solution also reduces the company’s vulnerability. Payroll management is both complex and time-consuming. It is also lonely because the payroll department often consists of a single person who possesses all the knowledge required to carry out all aspects of the payroll process. This payroll administrator must not only pay out the correct salaries, allowances and benefits, but also keep track of sick leave, holidays, statistical reporting, taxes and employer contributions. On top of all this, she or he must be able to navigate correctly among new laws and regulations as well as learn new functions in payroll and personnel systems – It is a big responsibility, which also means a risk for the company. In this case, alone is really not strong. Because what happens if that person is on sick leave or hastily resigns? If you lose a person who alone has all that knowledge and experience – yes, it can be a disaster. It is actually not at all unusual that companies are not prepared for this, says Björn Jareblad. Then a payroll agency is a safe alternative because the right staffing is always in place. The service is also delivered in the event of illness, vacancies or something else unforeseen should occur. An efficient and future-proof payroll is also dependent on modern software. – Investing in a new payroll system is expensive and time-consuming – as is the work with all the updates and ongoing maintenance. With an outsourcing solution, we are responsible for both the services and the software.
Optimal with partnership
But putting something as important as staff salaries in someone else’s hands can feel uneasy and the question marks can be many. – Outsourcing is far from a matter of all or nothing – what should be included in the service is largely up to your company. Some choose to outsource the entire payroll process, others choose to keep parts of the job in-house, says Björn Jareblad. – In order for the outsourcing to function optimally, it is also important to see the assignment as a partnership. Although we are responsible for most of the actual execution, we encourage the companies to maintain control over the salaries and to have a close dialogue with us as a partner. Most people appreciate that.Payroll outsourcing – we help you with your payroll processing!
Flex Services is a subsidiary of Flex Applications that has specialized in payroll outsourcing, which means that the company’s experts can temporarily, or for a longer period of time, take care of personnel and payroll issues. Flex Applications is an HR and payroll company that offers a complete personnel system with time reports, travel invoices, staffing, salary and HR processes. The company was founded in 1990 and today has its head office in Örebro and local offices in, among other places, Stockholm, Gothenburg, Malmö and Motala. In the Nordics, Flex Applications are used by more than 8,000 companies and almost 700,000 users. The article is produced by Brand Studio in collaboration with Flex Applications and not an article by Dagens industri