Financial safety and stable income are always top priorities for employees. Errors in payroll can easily demotivate them, reducing work efficiency and quality. Many companies still make this mistake, losing talent due to a lack of transparency in salaries. According to a 2022 Beqom survey, 60% of 1,000 employees are willing to switch jobs if the new company is more transparent about salary. Lack of salary transparency not only erodes employee trust but also causes internal and legal issues. So, what solutions can businesses implement to overcome this situation?



Effective Solutions for Businesses

Transparent payroll requires businesses to manage a large volume of administrative work such as record-keeping, data processing, compliance, tax filing, data security, and fraud prevention. Here are some solutions that businesses can consider:

Invest in a Basic Payroll System

Many businesses have invested in well-established payroll processes to improve efficiency and reduce errors. This process helps to utilize internal resources and can be maintained long-term if invested properly. However, for small and medium-sized enterprises, this investment faces challenges such as lack of personnel, insufficient finances, and technology. Meanwhile, large enterprises hesitate to invest in payroll systems, preferring to focus on developing company strategies.


Outsourced Payroll Services

Another solution is to use outsourced payroll services. According to a 2021 EY survey, 69% of organizations used this service for HR and payroll tasks, a 12% increase from 2019. Outsourced payroll ensures transparent salary policies, helping employees feel secure at work and understand their contribution's value. Additionally, HR departments have more time to care for and develop employees' skills. Many businesses have begun applying automation technology in payroll to increase accuracy and efficiency. Reputable service providers also address employees' concerns about salary, insurance, and benefits, advise on new salary trends, and update legal regulations.


HR2B Payroll – Effective Outsourced Payroll Service

HR2B Payroll provides a comprehensive payroll solution integrated with the HR2B Human Resource Management System. This service helps businesses manage work efficiently while ensuring information security. Particularly, HR2B Payroll offers reasonable fees, helping businesses reduce cost concerns when deciding to outsource.

Both solutions have their pros and cons, suitable for different types of businesses. Overall, they contribute to enhancing transparency in payroll processes between businesses and employees. Choosing which solution depends on the specific conditions and needs of each business.