Payroll outsourcing during times of turbulence

In these times of crisis and financial turbulence, many companies tend to consider payroll outsourcing as a viable option to reduce costs, by up to 20%, which represents a relief for their economy. This solution includes professionals in the field, as well as technological tools that respond to the different needs of each company.

In this article, we will explain how payroll outsourcing companies can help you improve your business. The sectors of the economy in the UAE, where outsourcing is common are banking (private), retail sales companies, telecommunications, health, manufacturing, and entertainment.

  1. What is payroll outsourcing?
  2. Advantages of payroll outsourcing in Dubai in times of turbulence
  3. How can payroll outsourcing in the UAE help my company?
  4. Who can opt for this service?
  5. Why you should choose this option?
  6. How can we help you obtain more information about payroll outsourcing during times of turbulence?

1. What is payroll outsourcing?

Payroll outsourcing

Payroll outsourcing in Dubai is an activity in which a third party handles and organizes the administration of a company’s payroll. Also known as outsourcing; this service is beneficial since it optimizes times and uses trained and specialized personnel for punctual and precise payments.

This scheme allows removing the workload from management activities, so that it deals with the operation and profitability of the business, and leaves the administrative processes of the staff in the hands of experts.

There are many myths about the payroll outsourcing service and today it will be our main topic, we will also highlight the advantages of this service.

1.1 Benefits

  • Increase in productive capacity: allows to be able to meet extraordinary market demands. But without increasing structure and/or infrastructure.
  • Competitive advantage: in addition to directing resources more efficiently, outsourcing provides access to best practices and technologies that experienced companies offer.
  • Fewer responsibilities: the company is freed from hiring processes and personnel administration.
  • Stability and robustness: in certain key functions, depending on the services of an expert third party guarantees the continuous updating of infrastructure and training that is required to maintain service levels.
  • Greater flexibility: starting from the basis that the service provider company that has the best operational capabilities and that provides a quality service must be chosen, it is assumed that it is possible to implement improvements and new processes that allow responding to new business needs.
  • Shorter execution times: they are based on efficient technological platforms and qualified human resources management.
  • Incremental income: they are the result of operational efficiencies, a greater offer of services, and the capacity to respond to demand. Basic considerations when contracting the service:
  1. Have clear KPIs.
  2. Have defined and clear processes in which the outsourcing staff will interact.
  3. Be clear about the profiles of the staff you are requesting.
  4. Clarity about the coverage (schedules) you want.
  5. Be clear about and respect the scope negotiated for the service.
  6. Assess whether there will be external staff sharing with the rest of the staff in their offices.
  7. The outsourcing staff must report to their employer any anomaly.
  8. Investigate supplier success stories.

1.2 Myths

  • Is it illegal for my company?

No, it is a law-protected strategy. Experts in payroll administration who know the laws and processes usually implement them.

  • Is it true that this scheme is used to pay fewer wages and evade benefits?

No, the law covers both salaries and benefits and contributions.

  • Am I at risk of losing control of my payroll?

On the contrary, you have more control of it, but without the operational burden. With strategic reports, you can see everything related to payroll, at the time you need it.

2. Advantages of payroll outsourcing in times of turbulence

Undoubtedly, payroll outsourcing companies in Dubai represent significant advantages in any work center, such as:

  • It increases the profitability and productivity of companies since it encourages the businessperson who contracts this service to reduce time in processes and focus on business tasks, such as employee retention strategies.
  • There are better results, and greater control; and the service will have a specialist in the subject who guides the entrepreneur. With this, you will have the certainty that your company is in the hands of professionals, who are also constantly trained.
  • Despite the different reforms that were recently established, it is a great option for the employer contemplated in the laws.

During the end and beginning of the year periods, the workload for the administrative team of the companies tends to increase, which must keep the premium and severance payments up to date for the employees who are part of the organization.

In some cases, the labor contracts of collaborators who work under the fixed-term modality also end. For the settlement of contracts, companies must take into account the reason for the withdrawal, since depending on it, the mode of settlement varies, whether or not they are entitled to compensation and/or bonus for withdrawal.

3. How can this help my company?

To optimize the development of these processes, there are payroll outsourcing companies in the UAE, it is a tool that allows operating times to be controlled to comply with the established schedules for both payment to employees and payment to suppliers.

In addition to facilitating the operation and the fulfillment of responsibilities, subcontracting payroll allows companies to improve their productivity by making their management more effective, reducing costs, and improving the time to dedicate to the core of the organization.

The management and administration of payroll require dedication and efficiency in its execution, now this procedure requires going hand in hand with innovation. This is why companies must adapt to new technologies to be more efficient in fulfilling these obligations without neglecting current national legislation.

In this sense, a payroll outsourcing company or payroll becomes the allied service of companies to facilitate the work of their collaborators, improve performance and, consequently, their competitiveness, as it will keep staff loyal to the company’s work, focused on achieving good results and value as a fundamental part in the responsible and dedicated execution of their duties.

The income of the collaborators, as well as the processes of social security, premium payments, incentives, and legalization of contracts, are on time, because being a relevant emotional factor, they generate in those who perceive them a sense of stability, support, and the necessary conditions for its optimal development.

4. Who can opt for this service?

Payroll outsourcing

It is normal for you to consider that payroll administration in Dubai is only for the big companies in the country, but this is really not the case, because SMEs or the self-employed can also choose to take advantage of the incredible trend of payroll outsourcing services.

It is very likely that those who are the first to implement payroll outsourcing in Dubai are small companies. The reason arises from not having ample resources. Such as having an area in charge full time in human resources disciplines, accounting, and others.

4.1 Key services of a payroll outsourcing program

The Payroll Outsourcing service that is adopted within any company should have some standard features. Although not all of them are required, it is advisable to check that the system we are choosing has all of them.

Since the most important task of this payroll program must be the management of information on salaries and contracts, we must hire a model that is very precise to the development of the work.

We should also prioritize fast payroll software. Our deliveries must be punctual and accurate. The field of employee finances is usually a quite sensitive issue and nobody likes to find errors in their payroll service. Since the correction seems difficult and long. It must be taken into account that payrolls entail some withholdings, as well as the payment of taxes that must be clear and accurate.

Another characteristic is that they take charge of managing registrations and terminations within the company. To manage this type of procedure, it is necessary to contact state public administrations such as Social Security. All these types of actions, which could become concerns for companies, by putting them in external hands become facilities.

The consequence of a payroll outsourcing having all these options is that the hiring price will rise in relation to the quality and quantity of features that are hired. The more complete a product is, the more expensive it will be in all cases.

5. Why you should choose this option?

Beyond the characteristics of a payroll outsourcing service in Dubai, the advantages that they would bring to the organization must be taken into account. First, let us review the advantages of an outsourcing service without focusing on payroll:

5.1 No worries

Not worrying about an issue allows you to focus on the rest. It can be a determining value when it comes to achieving better results. Putting all efforts into developing the core service is a competitive advantage for any organization.

5.2 Minimize expenses

Although it may not seem like it, hiring this service can help you save both time and money. There are many expenses arising from the management or optimization of the company’s resources.

5.3 Prioritize

If changes come, you will be ready. By freeing some departments of loads, it allows them to give importance to others that may be failing and focus on the key areas of the business.

Referring now to payroll outsourcing, we must add to these three advantages, others that are very notable for your company:

5.4 Automatic

The factors you use will be state-of-the-art without spending more money than necessary. Your payroll control system is constantly updating automatically without having to pay for additional licenses.

Also, it can help you because:

  • It is competitive: the processes of your company internally are minimal. The execution of actions of the business strategy is centralized. It is a method to increase effectiveness.
  • Reduce problems: you ensure that a company will concentrate on avoiding risks. By leaving the management of your payroll in the hands of another company, it is less likely that you will miss certain deadlines of the state administration and that you will avoid unnecessary expenses in delays. This allows us to be more transparent in payroll costs.
  • More information: although it may not seem like it, you will have more knowledge about your payroll. The businesses that are in charge of these procedures send reports that allow you to know the position of all the roles they perform. They also keep you up to date on special situations such as work absenteeism.
  • Digitization: it can be the first step to digitizing the company. In the age of digital transformation, this may be the beginning of change. Using software that is responsible for such important management demonstrates confidence in the technologies that will improve the development of companies.
  • Experts: The companies that are into these tasks train and are capable of carrying out their work at a very high level. Also, in case of having to solve adversity, it is likely that they know what is failing or what needs to change in management.

6. How can we help you obtain more information about payroll outsourcing during times of turbulence?

The payroll process of companies in the UAE, which is almost tax-free, is not as straightforward as you might imagine. Payroll management is complicated by the multiplicity of expatriate nationalities and the continual changes in local rules.

EOR Middle East is the place to go if you are seeking for a firm to handle your payroll and other administrative tasks such as relocation services, immigration, PEO services, and more. Our organization offers the most comprehensive payroll services in the area. Our services of quality are accessible in the following places:

We have spent a lot of time aiding companies in their quest for success. Assisting them with market expansion and development. EOR Middle East has a 98 percent success rate, multiple accolades, and over 800 ratings. Establishing our position as the leading consulting firm in the UAE specializing in the payroll processes. Our company offers a customized collection of services to quickly increase your company’s productivity. Furthermore, we have a dedicated staff of agents who will make your time with us unforgettable.

Do you have an interest in having EOR Middle East manage your overseas payroll? If you require assistance with payroll outsourcing and other HR services, please contact us at [email protected]. Or give us a call at +971 43 316 688. All of your questions will have answers thanks to our representatives.

If you are seeking the perfect job, you can also send your resume or CV to You can also email us at [email protected]. As a result, our recruiters will ensure that you can obtain an appropriate position in the UAE based on your qualifications.

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