By Phoebe Wong – Head of HR Outsourcing , Links International Singapore
Imagine building a business from scratch and working hard days and long nights to grow something out of nothing. This do-it-yourself instinct is second nature to Singapore entrepreneurs, which is why some of them wait until it’s too late to outsource.
Business outsourcing is the most efficient solution for Singapore businesses when the skills necessary to complete a task fall outside the bounds of an entrepreneur’s knowledge and time constraints. Unfortunately, many Singapore business leaders realise this after they’ve spent too much money, wasted too much time, and when they find themselves in a world of chaos after taking on Singapore payroll and human resource tasks they are not equipped to handle.
Here’s why smart Singapore business leaders focus on doing what they do best and leave payroll processing to the experts:
1. Payroll Outsourcing Saves Time
A business exists to perform a service or sell a product. Their energies, resources, and efforts are streamlined to perform profit-making tasks. When business leaders take resources away from profit-making activities, they waste time doing something they cannot do as well as an expert. For Singapore payroll, these time-consuming activities include:
- Researching Singapore’s wage and hour laws
- Every pay period, setting aside time to calculate the entire payroll
- Using time and resources to print, sign, and distribute cheques or pay slips
- Submitting prepared payroll taxes with the proper filing records to government agencies
Experts will not only do a better job, they will save businesses time while doing it, which will ultimately leave business leaders free to focus on what they do best.
2. Payroll Outsourcing Saves Money
According to a Towers Watson survey, Asian salaries are on the rise. Before inflation is factored in, Singapore will see 4% salary increases, Vietnam will see a 9.6% salary increase, Indonesia will see a 9% increase, China will see a 7% increase, and Japan will have a 2.3% bump. These salary increases reflect that Asian economies and businesses are growing.
In Singapore, the technology infrastructure, decision-making processes, laws and governance, and legislation differs greatly by region and is in rapid flux. Likewise, Singapore tax laws are complicated and take dedicated effort to accurately assess. As businesses expand across various regions, and as their Singapore payroll increases in size, the legal issues surrounding paying accurately, legally, and on time, require the dedicated effort of an expert to understand and execute.
If a business doing payroll in-house misunderstands one of the many complex timely payment stipulations and laws in Singapore, they stand to lose money due to legal penalties. What’s more, Singapore payroll experts know how to pay employees what they’re owed, make the most of laws, and keep as many funds as possible with the business.
A penny saved is a penny earned. As businesses in Singapore expand, payroll outsourcing can be key to saving money.
3. Outsourcing Ensures Confidentiality
The convenience of outsourcing Singapore payroll isn’t merely a matter of making life easier for a business owner; it makes the business safer.
Payroll processing entails trusting a member of the business with secured information such as other employees’ salaries, and business financial statements. When an employee processes payroll, the risk of detrimental security breaches increases, such as sharing of salary information, embezzlement of funds, or tampering with company records for personal gain. The security of a business’s server also puts employees’ personal information at risk, creating a liability.
When using Singapore payroll experts, businesses can protect themselves against internal security breaches, and have access to state-of-the-art systems with the highest level of security, because it is necessary to these experts to have high-security software and systems.
Don’t lose money, waste time, or cause your business a headache; contact us to outsource your Singapore payroll. Links International was voted the Best Payroll Outsourcing Partner in Hong Kong and Singapore in 2015 and 2016.
Voted best recruitment agencies in Singapore, Links International is an industry leader in innovative HR outsourcing Services with services such as payroll outsourcing, visa application, PEO/EOR Secondment, outplacement counselling, recruitment and more! Contact us for more information on how we can help leverage your HR function.