How Payroll Outsourcing in UAE Helps Businesses in 2021

The year 2020 forced businesses in adjusting onto pandemic operating measures. Majority have found incredible ways in optimizing their efficiency and productivity, including payroll outsourcing in UAE. Outsourcing to specialists in Dubai and across the UAE makes use of the expertise of third-party vendors in performing administrative business functions. 

Ways Payroll Outsourcing Helps Businesses in 2021

Payroll outsourcing in Dubai, UAE, in particular, provides lots of benefits, including having an HR team that can ramp up in managing the changing demands of highly volatile employment markets. Because companies have already adopted some form of remote operations for a lot of functions, outsourcing payroll in UAE becomes easier. 


How payroll outsourcing in Dubai helps small businesses from startups to multinational corporations this 2021 are the following: 

  • Competitive Edge for Employee Recruitment

Outsourcing payroll in UAE in 2021 provides even the smaller organizations an edge over competitors. As the HR team will be freed up in focusing on labor force planning, training, benefits, and all other progressive HR functions, a business becomes more attractive and beneficial for top talent in the country. People today only want to work with companies that are much willing in investing in their career growth and futures. Skilled workforce wants companies that are committed to skills advancement, upward movement, and continuous training and improvement. 

While payroll outsourcing in Dubai, UAE can seem to add in costs for a business initially, it will save money down the road. As we continue to head into hopefully a sooner economy growth and recovery, outsourcing payroll can offer a clear path towards future success and a more talented workforce.

  • Simplified Certified Payroll Processing 

If your business manages projects that are funded by the local government, you most certainly understand the stress and headache of having certified payroll. With payroll outsourcing in Dubai, UAE, you get to ensure that you are strictly following the complicated process of running payroll, including having certified payroll reports. 

Processing payroll in UAE regularly, which is a necessity in paying employees what they’re due, is very time-consuming. Not only that as the frequency of the task leaves an organization very vulnerable to errors, which most definitely results to fines and loss of bids in the future. It’s an important thing to consider when you are processing payroll. Payroll outsourcing in UAE for taking care of your reporting obligations and all the other aspects of running company payroll can help ensure the following:

  • Hourly rates of employee pay are all reported on time and accurately 
  • The business uses correct occupational classification and title in defining the business 
  • Full compliance to relevant regulations, including maintenance of the Wages Protection System (WPS) for UAE businesses 


  • Efficient and Effective Workforce Planning 

Workforce planning often falls by the wayside with organizations wherein the HR department keeps on getting caught up in the minutia. With payroll outsourcing in Dubai, UAE, businesses have an enhanced capability for workforce planning. This does not only free up a lot of time – it also helps in keeping track of the team.

Your business can be proactive in the following: 

  • Sourcing the top talent 
  • Phasing out the poor performers and retirees 
  • Arranging for internal transfers 
  • Being more effective and efficient in talent management

You can create more defined goals in relation to talent acquisition if you have a better understanding with regards to costs, recruitment and firing patterns, and more importantly, success of your talent recruitment.

  • More Focus on the Core Business Functions 

Constant disruptions and changes to HR roles because of the pandemic puts a lot more demand on internal HR departments. Outsourcing payroll in UAE allows HR managers and entire teams in concentrating on more important business functions, including the following:

  • Engaging employees 
  • Applicant tracking 
  • Improved job satisfaction in order to attract the top talent 
  • Simplified onboarding
  • Training 
  • Employee growing and performance reporting 
  • Improving retainment, most especially in industries like healthcare wherein employees are constantly in high demand 

When work like payroll and other administrative tasks are being outsourced to third party vendors, HR teams become a lot more strategic. They’re also going to develop themselves into people specialists that are focused on finding and keeping the best employees. As a result, the challenges of majority of businesses, including skills gaps which interfere with company growth and progress, are completely avoided.

  • Reduced Operational Costs

Because a lot of businesses have already re-considered the locations of their workforce, payroll outsourcing is definitely the next best step which helps reduce operational costs. It doesn’t only provide the opportunity in refocusing an HR team’s role, but also cut significant costs in relation to man-hours, space, and technology required by an inhouse payroll team.

To know more about payroll outsourcing in Dubai, UAE, call us here in Payroll Middle East today!