Your Quick Guide to Payroll Outsourcing and Manpower Outsourcing
In the world of human resources, you may think there are several overlapping concepts. Many people and non-HR managers don’t know the differences between payroll outsourcing and manpower outsourcing, which puts them at a cross-road about their needs.
We understand that HR concepts and terminology can be confusing sometimes. But knowing the differences between them can help you manage and grow your business.
Moreover, knowing when you need each type of HR outsourcing option can help you achieve more in less time.
In this article, we’ll be focusing on two main HR concepts, what sets them apart, and when you need each of them. Read on to discover the differences between payroll outsourcing and manpower outsourcing. We’ll also explain how you can outsource these needs.
What is payroll outsourcing?
Outsourcing in general means giving a task or project or job to an external resource. This resource could be a company, organization, or even a freelancer.
Payroll outsourcing is the process giving payroll duties in your company to another firm or third party. This third party, let’s call them Tawzef, takes charge of all your payroll needs such as calculating salaries, deducting absences and missed or late hours, among others, at the end of each month.
In addition, it’s their job to ensure that your employees are paid what they’re due on time.
What many companies don’t realize is that payroll is just one of the many duties performed by an HR department. And it’s a generally tedious task.
Moreover, many companies today don’t have the capacity to hire a full-time employee to manage their payroll.
A good alternative in this case would be to outsource payroll to a third party like Tawzef and focus on the business itself.
What is manpower outsourcing?
Another important HR term is manpower planning and accordingly manpower outsourcing.
Manpower outsourcing is the process of delegating hiring tasks and business operations to a third party.
These hiring tasks may include creating or building your company’s hiring grade structure, talent acquisition and staffing, whether full-time, part-time, or temporary employees, and payroll needs.
Payroll outsourcing and manpower outsourcing: What’s the difference?
As you can see, payroll outsourcing and manpower outsourcing aren’t the same thing. But there is some kind of overlap between the two HR concepts.
The main difference between the two types of outsourcing in HR is that manpower outsourcing covers both.
Think of manpower outsourcing as the broader term and function that encompasses payroll outsourcing within it.
Some companies may opt to outsource their hiring needs but not their payroll, while others may choose to outsource the whole package and focus on their business needs instead.
As mentioned, manpower outsourcing services include hiring needs as well as setting up a company’s overall grade structure. This is particularly important for new companies.
Manpower planning establishes the hierarchy and the salary system within your company to ensure that employees are treated fairly. This, in turn, builds into your employer branding and helps your reduce employee turnover.
What does your company need?/ Determining your company’s needs
When it comes to outsourcing, especially in HR, there seem to be many related services. So how do you know which services you want?
As a business, it’s best to determine your outsourcing needs based on your company’s needs.
These are all questions you need to answer to get the service you want. Maybe they all sound similar to you? Or maybe you have too much on your plate and can’t really decide what you need?
That’s why we recommend contacting an HR consultancy like Tawzef. This way you can explain your needs and they will break it down for you.
At Tawzef, we also tailor and combine services to fit and meet our clients’ needs.
Why to work with a manpower outsourcing company
Working with a human resources outsourcing company comes with many benefits. Here are a number of those benefits:
- Reduce your workload.
- You don’t have to worry about hiring employees whose job requirements and qualifications may not fit the job, or about their ability to perform the tasks that will be assigned to them.
- You can contract the company on a per project basis.
- Reduce your headache about employee-related tasks.
- Easier to open bank accounts.
- All legal and employment-related paperwork becomes the responsibility of the manpower consulting agency.
Working with outsourcing companies in Egypt also means you don’t have to worry about the legalities associated with hiring personnel and ensuring their papers are in order. Your outsourcing solutions provider takes care of all of that.
So, what do you need to remember when working with an HR or manpower outsourcing company?
All you need to do is to clearly explain your needs and your pain points. That way, the outsourcing company can determine the services you need and package them for you.
That way, you know what to expect from the service you receive.
Businesses today need a variety of HR services. But because they’re often unfamiliar with what these services are called or which of them they need, they forego these services and needs and attempt to do it all themselves.
The result? The company’s non-HR managers and personnel are tasked with many additional administrative and operational requirements that prevent them from performing their jobs.
Moreover, many of the business’s other needs and tasks are delayed or put on hold. Employees end up working long hours without feeling productive or feeling like they’re contributing to growing the business.
And therefore, higher employee turnover and stalled business growth.
On the other hand, outsourcing payroll or manpower needs, can help you get your team back on track and leave the headache of payroll and salaries to the experts.
As a recruitment agency and HR consultancy with more than a decade of experience in the Egyptian market and in Gulf markets, Tawzef can help you with your hiring and payroll needs. We’ll help you by taking away the tasks you’re unfamiliar with so your team can focus on what you hired them to do.
So if you’re considering outsourcing your HR needs, or if you’re not sure which service your needs fall under, get in touch with Tawzef. Our team will take the headache and hassle away so you can focus on growing your business.
You can also check out our outsourcing services.