Do’s and Don’ts for Small Business Payroll Processing in UAE


In large corporations, payroll processing in UAE can be an incredibly difficult task as it has to be done with both proficiency and accuracy. Just like with any other business practice nowadays, payroll processing can be outsourced onto trustworthy payroll specialists. Payroll outsourcing in Dubai or anywhere in UAE offers a lot of benefits. This includes minimizing time consumption, streamlining the process, and establishing an effective and strong organization and employee relationship with timely payment processing.

While payroll outsourcing in UAE can simplify the process, if you don’t follow best practices such as proper planning, the entire thing can get tangled. In this article, we’ll provide you with expert-suggested guidelines specifically for business owners looking into outsourcing payroll in UAE. Let’s start!

DO seek out the advice of your outsourcing partner

Your service provider is a specialist on payroll processing, which means they fully understand the processes involved, what it takes to scale, as well as possess a wealth of knowledge only gained from their previous engagements. You should let your payroll specialist guide you, most especially on the best ways in reducing the complexity of recurring issues and/or how to deal with them. Chances are, they have already seen those problems before.

The easy fixes are usually internal policies which exist as they are “they ways in which things were done.” It can be something as inconsequential and simple as changing the way a staff is recruited or making sure that requirements for employee self-service are enforced. Sometimes, the very minor things make a huge different with regards to efficiency.

Don’t spring change on your staff

Communication is very important, most especially if you already have payroll specialists maintained inhouse. Your HR and payroll team needs to understand that your decisions to outsource payroll in UAE will be making their jobs easier as redundant tasks will be taken away. The team also needs to understand that they will be adopting new positions and that is something for them to be excited about. You need to talk to them regarding their new responsibilities rather than discuss all the manual labor that you will be taking away from them with payroll outsourcing. This way, they will stay focused during the transition and won’t fret on losing their jobs.

It is also very important to begin talking to staff members early on, educating them so you ease their fears on anything that works or looks differently with the new environment. If your employees are getting paid with direct deposit rather than by paycheck, talk to them. The same goes if they now have to utilize a self-service portal rather than pick up their work phones to call HR. Explain how exactly things will work.

It is important that you keep staff not just informed, but also fully aware and excited on features of the payroll outsourcing in UAE that can make their lives even better. For instance, if you are now opting for direct deposit, then expound and stress on the convenience. Whatever it is you do, you need to make sure that you don’t make the change to payroll outsourcing a big surprise.

DO consider outsourced payroll specialists as your partners

With payroll processing in UAE, the fundamental truth is that the parties involved are all in it together. If it’s not a progressive and open partnership, then it won’t work. This means if a party sees an error or mistake, the mistake should be pointed out rather than let go. It is like a marriage between the business and the outsourced payroll processing service provider wherein both parties are to watch the back of each other. Also, just like with any partnership, the parties involved have their own sets of responsibilities.

Hiring a payroll processing firm in Dubai does not take away the responsibility of the business owner for strategy as the leader. The business owner is still the one responsible with the ultimate outcome, including how the payroll specialist will engage with the existing employees.

In addition, realize that the involvement continues through an engagement’s entire lifespan. A business can’t simply migrate onto outsourcing payroll then walk away. It also has to monitor why the staff members are calling in.

DON’T dissolve the whole payroll department

One of the mistakes that businesses make when outsourcing payroll in UAE is getting rid of the internal payroll experts. It is critical that a business keeps some experts inhouse. The experts must, of course, understand payroll laws, check for accuracy, and understand how calculations work. Every outsourcing partner has to have that kind of company liaison.

Take note: outsourced payroll specialists can do a lot of payroll and HR functions, but they also need some kind of support from the business that they are serving.

To know more about payroll outsourcing in UAE, contact experts here in Payroll Middle East  for a quick consultation.

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