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Payroll Standardization – A fundamental need to grow your business



According to the EY Global Payroll Survey 2021, 67% of firms believe that standardizing the payroll process is critical for the long-term growth of their business. As a result, there are several inquiries about this topic, such as “How to standardize the pay calculating process?” Should companies systematize their payroll processes?

Why should enterprises standardize their payroll processes?

Salary computation is one of the monthly critical procedures of the human resources department (HR department) that requires exactitude. As a result, standardizing the salary calculation process is always considered by every organization because without a standard process, the HR department will spend a lot of time in the working process, possibly encountering legal risks, being prone to making mistakes, or even repeating old mistakes.

Standardizing the payroll process entails setting regulations for different operations, such as identifying revenue, profit, and salary form; developing a wage structure, bonus, and performance assessment system for each position, and so on. The homogeneity of the payroll process will be measured by efficiency factors, the time it takes the HR department to execute the payroll operation, and the payment of personnel at the same level in the organization.

Developing a standard payroll process allows the human resources department to simply identify the purpose, sequence, manner, and quality control of the activities to be completed in the payroll operation. When work is optimized in the proper procedure, the HR department will have more time to focus on other development goals such as enhancing the working environment and operational processes, assisting businesses in developing a stronger and more sustainable basis for growth.

However, many organizations keep struggling or failing in the process of standardization because they misunderstand the comprehension of the payroll process, have limited time, and the incompeted HR department. Consequently, many organizations prefer to employ outsourcing payroll services as a support solution to assure the quality of the payroll process.


How does the payroll outsourcing solution support the HR department?

Basic payroll services include payroll management, PIT management, PIT finalization for individuals and businesses, and social insurance administration. Furthermore, depending on the demands of the organization, the HR department can require other administrative support services.

In addition to minimizing legal risks and optimizing expenses for businesses, payroll services support the HR department focus workforce on standardizing the payroll process as well as other strategic business development goals. 

As a result, according to the EY payroll study for 2021, 69 % of firms have employed outsourcing services for the HR department and payroll calculation, up 12 % from 2019. Combining the HR department with payroll services has since been recognized as a new international corporate trend.

Payroll Outsourcing Co., Ltd. (VPO) is a subsidiary of I-GLOCAL Group, which has many years of expertise in the field of tax consulting – accounting – investing in Japan. In order to fulfill the demands of payroll services in Vietnam, VPO has established terra Payroll Outsourcing service. With a team of seasoned personnels and experts understanding of Vietnamese law and tax, terra Outsourcing firmly assures the quality and accuracy of services, supporting businesses in avoiding legal risks and errors.


terra Payroll Outsourcing service – streamlining the human resource process

Diagram of services provided by terra Outsourcing

terra Payroll Outsourcing service:

terra Outsourcing offers a variety of outsourcing options to enterprises, associating with terra System. All employee information, forms, and payroll are maintained on the same platform with terra System, to assure confidentiality, accuracy, and openness in personnel information management. By integrating payroll calculation service with HRM technologies, businesses are able to handle a number of work situations in a careful but efficient way.

Other services according to customer needs:

Additionally, terra provides salary transfer services, administrative support staff services, and works on behalf of customers with administrative agencies on social insurance, tax, and union issues, all of which help the business save time and human resources.

Using terra Outsourcing allows customers to access multiple rights including: receiving advice from human resource experts on payroll solutions, receiving support and answering questions throughout the use process, and ensuring the business is on the right track in standardizing processes and improving the quality of human resource management.

Learn more about terra Outsourcing here

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