Sustainable payroll management competence: The choice


A corporation has two options to choose from when it comes to sustainable payroll management competence. Either keep the task within the organization by ensuring continuous resources for it, or outsource it to a payroll service provider – in this case, the cost is calculable and transparent. NEXON, Hungary’s market leader among HR management services providers, has surveyed its nearly 300 outsource clients to find out why they decided to outsource their payroll and HR management processes and what they think quality service is?

Employee satisfaction plays a vital part in a company’s success. Several studies about motivation have covered this topic, but every one knows that the most important factors in satisfaction are the quality of wages and fringe benefits. The quality of wages is not only about the volume but also the predictability, accuracy, and transparency of wages. Maintaining quality in the current fast-changing and unique legal environment in Hungary calls for serious payroll management competence.

When asked about the reasons for outsourcing, the majority of NEXON’s partners said that payroll and HR administration processes – such as payroll calculation, registering working hours, creating work protocols and staying up-to-date in legal matters – are not among the main competences of a company, therefore this area receives the least possible resources. By outsourcing processes, companies are able to focus on their core activity.

According to Zoltán Lovas, director of the services department of NEXON, several companies supported outsourcing because this way, there will be enough HR capacities to support the companies’ strategic HR activities – which is an increasingly relevant expectation in a corporation’s life.

 It is also an important argument for outsourcing that a calculable cost element looks ‘better’ in a cost-conscious company’s books than costs spent on non-core activity (i.e. on human resources). Several partners of NEXON said they chose outsourcing in order to cut back on the HR cost of background activities.

According to outsource partners of NEXON, the most important factors, when it comes to payroll and HR administration processes, are as follows:

•  Accurate, reliable accounting

•  Reliable compliance with Hungarian laws

•  Confidential management of wage and personal data

•  Integration into corporate HR processes

•  IT security

•  Client-centered service

•  Cost efficiency

NEXON has created and developed its outsource services based on the above mentioned standards, and has also created its own IT solutions that support payroll and HR administration.

Packages offered by NEXON do not only provide up-to-date payroll competence to its outsource clients but also ensure complex payroll and HR solutions that fit IT systems and support the company’s everyday operation.

Employee self service applications that come with the outsourcing service allow employees to get increasingly involved in HR processes; this way, the efficiency of administrative tasks improves and the business role of HR also increases.

NEXON, as an expert in market trends and the constantly changing legal environment, with its 25 years of experience in the field of HR processes and 300 employees, ensures reliable background support for making the right decisions.

“The perfect partner”
In response to the question, Why have you decided on outsourcing and why with NEXON?" LEGO Manufacturing HR director Csaba Tóth offered this testimonial: “We are a manufacturing company and focus our knowledge and skills on producing world-class products. We do not aim to deal with payroll management and being up-to-date in legal changes. For these, we have NEXON as the perfect partner, because they are real professionals, therefore we can be sure that our payroll issues are in safe hands.”

Industry Assoc Augurs Fall in Construction Output Analysis

Industry Assoc Augurs Fall in Construction Output

NVB Orders Recount of Invalid Votes in Budapest Mayor Electi... Elections

NVB Orders Recount of Invalid Votes in Budapest Mayor Electi...

Hungary Protests Punitive Tariffs on Chinese EVs Automotive

Hungary Protests Punitive Tariffs on Chinese EVs

Discover the Potential of Geothermal Energy at Budapest Geot... Conferences

Discover the Potential of Geothermal Energy at Budapest Geot...


Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.