How can payroll outsourcing help your business?

Adapting to the digital age is not a task for which all companies are prepared. It is now common for companies to get payroll outsourcing and otherservicesfor certain processes that are not feasible in-house to third-party vendors to manage functions.

In this article, we will explain the advantages of payroll outsourcing. Also, how this can help your company grows and succeeds. Let us observe the following content:

  1. What is payroll outsourcing?
  2. Are payroll outsourcing companies right for your business?
  3. How does payroll outsourcing work?
  4. Advantages of outsourcing payroll
  5. How can we help you obtain more information about payroll outsourcing in the UAE for your business?

1. What is payroll outsourcing?

Payroll outsourcing is a service offered by an external entity that provides legal, tax, and accounting support to companies to ensure that employees receive their paychecks in a timely manner, accurately, and with minimal risk.

By allowing a third-party provider to manage payroll, companies can simplify legislative compliance and relieve their team of a large administrative burden.

Outsourcing your payroll allows companies to:

  • Record and control incidents.
  • Analyze, pay and allocate payroll according to the proper frequency (weekly, bi-weekly, and monthly).
  • Analyze remunerations, such as holiday time, commissions or motivations, vacation bonuses, severance costs, early departure, or other expenses that are not part of the worker’s salary.
  • Simplify regulatory compliance, including data protection legislation.
  • Operate internationally and effortlessly manage payroll crossways domestic and global locations.

2. Are payroll outsourcing companies right for your business?

Corporations of all industries, sizes, kinds, and places can advantage of a whole payroll outsourcing service. However, they must deliberate the quality of the deal provided and the equipment used to achieve the functions.

Payroll outsourcing in the UAE is especially useful if your business:

  • Does not have an inner management and economics team.
  • You need the economics and management team to focus on tactical tasks outside of payroll.
  • Operates globally but does not have Professional Employement Organization specialists in each country.
  • Requires endurance in payroll organization and lacks a strong data repossession method.
  • You are worried about an agreement with current or upcoming regulations.

While these reasons are valid, every business is different. Therefore, they must carry out a thorough examination of their condition in order to choose the perfect worker. This examination requires deliberation of precise factors including:

  • Magnitude of the staff and amount of people acting payroll functions in-house.
  • Influence on staff that did the payroll functions of the business. Will they be moved to other parts of the business or will they have to be placed off?
  • If the business lacks information and knowledge in payroll.
  • If the strategic decision to transform the costs associated with payroll company functions into a variable cost proportional to the size of the workforce makes sense for the company.

3. How does payroll outsourcing work?

Once the corporation has decided to employ a payroll outsourcing service, it has to describe guidelines and procedures to guarantee collaboration.

Businesses must share vital information about their staff with third-party facility workers. Also, names, salaries, hourly or daily rates, timesheets, vacation and sick leave policies, expense allocations, and any other data related to the payroll calculation.

Since the info being mutual is delicate, the corporation must also guarantee that the payroll provider decides to keep that information and to stand by a security and privacy agreement. A data protection policy may also be required.

Once the system is set up and processes are defined, the payroll provider can use the information to calculate payroll and pay their employees on time. They can also take care of agreements, payroll duties, and reporting.

This means these specialists can focus on other significant accounting responsibilities, such as revising financial reports and determining any accounting matters that may arise.

4. Advantages of outsourcing payroll

Payroll outsourcing companies in Dubai have great advantages that we will explain:

4.1 Grow your business turnover

One of the main reasons why it is convenient to outsource staff for your company is because you can dedicate yourself almost exclusively to the activities of your business. You no longer have to worry about those complementary activities to your business that represented an operational burden; such as the administration of your employees’ payments (payroll), or the personnel selection process.

4.2 Reduce operating costs

It is in every company’s interest to reduce the costs of its business; outsourcing is one way to do it. For example, for many companies, the administration of payments to workers (payroll), rather than being a profitable activity, is an expensive operation. For this reason, a good option is to outsource this activity by contracting a specialized service, which will reduce operating costs and avoid any error that could have arisen from carrying out this activity internally.

4.3 Reduces the personnel selection process

In addition, the costs for recruitment and selection of personnel also decrease by resorting to outsourcing. You no longer have to apply this process internally, now the specialized company will be responsible for carrying it out so that the best collaborators arrive at your company to optimize your operations.

4.4 Time optimization

The time is gold. Thus, outsourcing a company to develop payroll management means that the HR management team can dedicate itself to projects that generate added value for the company, such as improving synergies between workers, working on staff development, investing in conciliation policies, evaluating workers, and drawing professional career plans in a personalized way…

Meanwhile, the company hired to carry out the payroll will carry out its task efficiently, in less time, and without delays.

4.5 Resource and cost saving

Payroll outsourcing companies in Dubai translate into cost savings by having specialists without increasing the wage bill. And is that investing in payroll management entails a cost for the company since it must invest in personnel to carry out these functions. By outsourcing a payroll company, fixed costs become variable.

4.6 Core business

Outsourcing a payroll service is not just about “delegating” a time-consuming task. In addition, it helps the company to focus on its core business without neglecting internal requirements. In other words, it allows more hours to be devoted to activities that generate value and benefits for the company, promoting a competitive advantage instead of spending time and effort on tangential operations.

4.7 Take advantage of the latest technology

We live in a technological world. In fact, although the new generations are already digital natives and we are in the midst of digitization, it is true that in some aspects companies are not technologically up-to-date.

By outsourcing a payroll company, you are guaranteed to be up to date in both technology and cyber security and to use secure, accessible, and disaster-proof platforms and services.

4.8 Exponential return on investment (ROI) through outsourcing

Thus, the use of technology developed by payroll companies is a key element in business strategy. Through secure online portals; platforms in the cloud, and the optimization of time, which previously meant many hours of internal work or investment of the cost, are now much cheaper and more accessible.

An outsourcing company helps reduce expenses because it avoids having to acquire the necessary software, learn to use it, and maintain it, in addition to hardware maintenance, which is essential for its operation.

4.9 Updating and regulatory changes

Carrying out payroll management means being up to date with regulations. And this is changeable. For this reason, salary settlement processes are dynamic, since they must adapt to regulatory, tax, and legislative changes.

As a consequence, it is necessary to have someone qualified who is kept up to date and is capable of analyzing what each work-related modification implies.

Opting for payroll outsourcing in Dubai means having the peace of mind of knowing that you have a team of advisors, with the necessary know-how for a correct and rapid understanding and implementation of the modifications.

4.10 Improve compliance and reporting

Between laws, tax regulations, filing deadlines, forms, and a long list of requirements, managing payroll has become a full-time job. Outsourcing all this work to a company specialized in payroll means not having to worry about these issues and leaving this work in the hands of specialized people.

4.11 Guarantee of professionalism

An outsourcing company has experts who are exclusively dedicated to payroll, knowing in depth its details and secrets. They are continuously trained to keep up to date with all legal aspects and changes in labor, and tax legislation.

4.12 Greater security

With an in-house payroll department, there is always the risk of identity theft, document tampering, and embezzlement. In addition to these risks to employees, you would also need to ensure that your software and network are secure.

By having your payroll calculated off-site, there is less risk of security and confidentiality breaches. Payroll processing companies have highly secure methods of data storage and protection, as well as access to technology designed specifically to detect various types of fraud.

4.13 Government compliance

Tax codes, laws, and regulations are constantly changing, and as a business owner, keeping up with these changes can be quite difficult. A single mistake could lead to an audit and costly penalties.

Payroll processing companies understand these regulations and are dedicated to maintaining compliance standards. If there are mistakes, they will usually correct them and take responsibility for them as long as you provide the necessary documents and payments on time.

4.14 Tranquillity

By outsourcing your payroll, you can save yourself the worry and hassle of making sure your tax returns and payments are accurate and on time. This peace of mind, in turn, will increase your productivity, since you can focus your energy on growing your business.

4.15 Employee Information

It helps you have more data about the standing of your income. Outsourcing makes it calmer for the worker to assist.  Thus, they have control of separating their compensation into diverse bank accounts and they can be more attentive to their reserves goals.

Putting aside fixed amounts or percentages of each check-in in different savings accounts, in exchange for the rest going to a standard account where you have your billings, can help employees invest in themselves. This makes them gladder with their occupations and therefore more creative.

4.16 Control of personal data

The software also known as payroll outsourcing has the advantage of avoiding having to depend on human resources, in order to obtain any type of information. With this, the worker has more liberty to see and change their individual payroll info at the time they need or want it.

In addition, you can do this from your own PC, so you have better control of your individual data. However, this saves the employee a lot of time and stress, which helps, on a day-to-day basis, to be more productive.

5. How can we help you obtain more information about payroll outsourcing in the UAE for your business?

Payroll outsourcing services are one of our specialties. In addition, if you are seeking a reliable Middle Eastern remote worker, we are the best choice. However, EOR Middle East provides the best PEO and EOR services for your organization in the United Arab Emirates and other regions, including:

We have a capable team of HR professionals at your disposal. They are ready to assist you with any challenges that your company may have. Furthermore, EOR Middle East offers a wealth of experience, over 800 satisfied customers, and a 98 percent success rate. Also, all of the essential accolades to be the region’s best consulting firm.

Would you like to use EOR Middle East’s professional services? If you would want us to help you with your management issues, send us an email at [email protected]; or call us at +971 43 316 688. Our representatives will be answering all of your questions. You can reach us if you have any further queries concerning our payroll outsourcing guide.

If you are seeking a job in the Middle East, go to and submit your CV or resume. Emailing us at [email protected] is another way to get in touch. We guarantee that we will find the most suitable job opportunity in the UAE for your skills and expertise.

Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book.


Get In Touch

We help you to compliantly hire, pay, and manage the Right Talent across Middle East Regions