Payroll management has always been a “tough nut to crack” for businesses – it's labor-intensive, prone to errors, and filled with legal risks. But what if there was a way to immediately cut your payroll management costs by 30%, while still ensuring employees are paid accurately, on time, and transparently? Would you be willing to make the change?
This article explores why in-house payroll becomes such a burden and how HR2B offers an optimal solution that helps businesses save costs while enhancing the employee experience.
1. Why is payroll management a never-ending headache for businesses?
In many Vietnamese companies, especially those with hundreds or thousands of employees, payroll is still managed in-house. The reasons are simple: “That’s how we’ve always done it”, “we only trust our own calculations”, or “outsourcing must be more expensive”.
But reality tells a different story. Payroll isn’t just about counting workdays or timekeeping. It also includes:
Calculating personal income tax and social insurance.
Handling allowances, bonuses, and overtime pay.
Preparing periodic reports for tax and social insurance agencies.
Issuing payslips on time.
Handling complaints, errors, and retroactive payments.
Ensuring legal compliance with the latest regulations.
Just one small error in thousands of payroll data entries can cause serious consequences: widespread employee dissatisfaction, mass complaints, or even legal penalties. And the most crucial point? Payroll is a non-revenue-generating function. It doesn’t bring in new customers or increase sales but consumes significant company resources.
HR staff buried under piles of payroll documents, exhausted by tight deadlines.
2. The Reality: High Costs, Yet Constant Risks
To fully understand how costly in-house payroll can be, let’s take a closer look:
2.1. High HR Costs
A company with 500 employees typically needs at least 4–6 payroll-dedicated HR personnel. With an average monthly salary of 15 million VND, salaries alone can cost nearly 1 billion VND per year. And that’s not even including:
Bonuses and benefits for HR staff.
Training costs to stay updated with labor, tax, and social insurance laws.
Budget for purchasing and maintaining payroll software.
The result: A fixed annual expense that adds no direct revenue.
2.2. Errors Leading to Mass Complaints
Imagine a single error in a payroll sheet causing 50–100 employees to submit complaints simultaneously. The HR team may spend a whole week reviewing and fixing the mistake. During this time, employee trust in the payroll system plummets, along with morale. A Gallup survey found that 70% of employees consider accurate, timely payroll to be a top factor in staying with their company.
2.3. Legal Risks – A “Time Bomb”
Payroll-related tasks involving social insurance, personal income tax, and financial reporting must be completely accurate. Any errors or delays can lead to fines ranging from tens to hundreds of millions of VND. Worse still, repeated violations could land a company on the regulatory “blacklist”, damaging its brand in the eyes of partners and potential hires.
In-house payroll: costly, staff-heavy, and fraught with risks.
3. The Consequences of Poor Payroll Management
Many business leaders underestimate payroll, thinking errors are just “minor technical issues”. In reality, the consequences are far greater:
Loss of trust from employees: One or two errors might be forgiven, but repeated mistakes can destroy trust completely.
Higher turnover: According to PwC, 25% of employees are willing to quit if payroll mistakes happen 2–3 times. Replacing them can cost 1.5–2x the salary of that position.
Employer brand damage: A single social media post accusing your company of paying late or inaccurately can severely damage your reputation.
Pressure on leadership: CFOs struggle with budget balancing, CEOs deal with disgruntled staff – all because payroll hasn’t been optimized.
Clearly, payroll is not just an accounting task – it’s the lifeblood of your organization. And if that lifeline is blocked, the entire business suffers.
4. Payroll Outsourcing – The “Knot-Unraveling” Solution for Businesses
This is why many companies are turning to Payroll Outsourcing – handing over payroll duties to a professional partner like HR2B.
4.1. Instantly Reduce Costs by 30%
By outsourcing to HR2B, companies no longer have to pay salaries for 4–6 payroll HR staff, buy expensive software, or fund training programs. Everything is wrapped into one reasonable service fee – usually only 70% of the cost of in-house payroll.
4.2. Guaranteed Accuracy and Timeliness
HR2B uses a system combining technology and human checks to ensure 100% accurate and on-time payroll – eliminating errors and delays.
4.3. Absolute Legal Compliance
HR2B stays up to date with the latest labor, tax, and social insurance laws and applies them immediately. Businesses can rest easy, knowing they won’t be penalized for legal non-compliance.
4.4. Data Security
Payroll data and employee information are protected with international-standard security, minimizing the risk of data breaches.
In short, Payroll Outsourcing helps businesses cut 30% of payroll costs and completely eliminate legal and operational risks.
5. Employee Experience – A Core Value Preserved by HR2B
While cost savings are essential, what truly sets Payroll Outsourcing apart is how it maintains – and even enhances – the employee experience:
100% on-time salary payments: No more anxiety about payday delays.
Transparent, online payslips: Employees can clearly see all income, allowances, and deductions.
Quick complaint resolution: HR2B has a dedicated support team, so employees don’t have to wait for internal HR to respond.
Confidential data protection: Personal data is securely stored and never leaked.
When employees are satisfied, they stay longer, reducing turnover and saving recruitment costs – creating long-term efficiency.
Enhanced employee experience: on-time pay, transparent payslips, easy access.
6. Why HR2B Is Vietnam’s Top Choice for Payroll Outsourcing
While many providers offer payroll outsourcing services, HR2B remains a market leader thanks to its experience, technology, and deep understanding of local business needs. Here’s why hundreds of companies choose HR2B as their long-term partner:
20 years of experience in HR services, with Payroll Outsourcing as a core strength.
Hundreds of clients across industries: manufacturing, banking, tech, retail.
Local legal experts who stay updated and provide tailored advice.
Customized solutions: HR2B doesn’t offer “one-size-fits-all” packages – they tailor payroll systems to fit each business.
If your company is still handling payroll in-house, it might be time for a change. Let HR2B be your strategic partner in building a lean, transparent, and efficient HR system.
Contact HR2B today for a free consultation and service demo – the same solution that’s already helped hundreds of Vietnamese businesses cut costs and improve employee engagement.
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