Payroll outsourcing trends in 2025

Payroll is the most important function of the human resources department, directly affecting businesses and employees. To overcome the limitations and errors of previous manual forms of payroll calculation (books, Excel files, etc.), businesses have begun to apply technology to automate payroll calculation stages. So what progress or AI & automation in payroll outsourcing has technology application brought to payroll calculation?

1. Trends in applying technology in payroll calculation

During the COVID-19 pandemic, in addition to the requirement to be able to manage payroll information remotely, other standards are set for payroll calculation increasingly high, including: fast and flexible implementation, ensuring accuracy, and compliance with the law. To adapt and meet these standards, businesses need the support of technology, specifically using modern systems, automation, machine learning and artificial intelligence in the payroll calculation process. These technologies are seen as a solution to make payroll more efficient, freeing up time for the HR department to focus on other strategic factors.

According to CIPP's 2020 Future of Payroll Survey, when talking about payroll outsourcing trends in 2025 and the impact of technology on the performance of the HR department:

• 78% agree that applying technology to the payroll process will make the HR department more efficient.
• 62% agree that applying technology to the payroll process helps reduce costs associated with payroll processing.
• 59% agree that applying technology to the payroll process can solve common errors and allow the HR department more time to focus on professional plans.

From there, it can be seen that the trend of integrating technology into payroll is highly appreciated by most businesses because of the benefits it brings.

AI & automation in payroll outsourcing

2.  Benefits of applying technology in payroll calculation

2.1 Ensure accuracy

In the payroll calculation process, manual data entry is an inevitable step, a small error can also lead to other errors for the entire payroll. Applying technology can ensure accuracy for this step because personnel information and timekeeping data will be linked and automatically transferred to the payroll calculation table on the software, minimizing manual operations. From the updated data, employees only need to perform a few simple operations to calculate and issue salary slips for all employees based on pre-established formulas.

2.2 Cost savings

Businesses often think that they will have to spend a lot of money on investing and applying technology to the payroll calculation process. However, in addition to the direction of designing the software themselves, the form of purchasing software copyright or outsourcing technology services (SAAS) is also considered a solution to apply technology but still ensure cost optimization. Compared to the form of copyright acquisition, SAAS service will be more suitable and convenient for the majority of businesses, allowing businesses to save costs and efforts for building databases, managing systems, installing and maintaining hardware, software annually, etc.

2.3 Ensuring information security

Salary data is always confidential information for almost all companies. However, when storing salary information on computer systems or documents, the possibility of information disclosure is very high. Therefore, to ensure that the data will be absolutely safe, the servers or data storage locations of human resource management software need to be integrated into the Cloud (cloud computing). Here, all data will be authorized for each user account to access. From there, the data can only be viewed by members with accounts logged into the data system and authorized to access.

2.4 Data security in payroll outsourcing

Previously, Data security in payroll outsourcing was often stored on paper, making it difficult to manage, retrieve, report, and lose data. On the contrary, when managing and storing information online, all salary data will be synchronized and centrally managed on the same system, reducing the risk of fragmentation and enhancing Data security in payroll outsourcing consistency in the enterprise.

The application of technology to payroll has been welcomed and highly appreciated by the human resources community. However, currently in the Vietnamese market, it is very difficult to find a payroll service provider that integrates with technology but still ensures professional expertise and in-depth consulting. With nearly 20 years of experience supporting foreign businesses in the Vietnamese market and Payroll outsourcing and accounting software integration, Faro Vietnam wishes to become a provider that supports payroll for customers with all of the above criteria.
 

Payroll outsourcing and accounting software integration

3. Payroll service combining technology and in-depth consulting

For customers who are small and medium-sized enterprises with a thin or overloaded human resources department, needing a payroll service to support the human resources department.

Faro Vietnam provides a payroll service that helps businesses handle almost all payroll, personal income tax, insurance, etc. With more than 15 years of experience in the field of consulting - tax - accounting, with a deep understanding of legal regulations, Faro Vietnam human resources experts will support businesses in handling payroll work smoothly, accurately, and avoiding legal risks. In addition, Faro Vietnam always accompanies and consults on building a payroll process, payroll and how to successfully apply the service to the business's operating process.

With an extremely reasonable cost, while integrating consulting, technology and expertise, the services Faro Vietnam provides to businesses will always ensure 3 factors in payroll outsourcing and accounting software integration: Accuracy - On time - Legal. Register now to receive free support and consultation on services from the Faro Vietnam team here!

Faro Vietnam

• Email: service@farovietnam.com.vn

HANOI HEAD OFFICE

• Tel: + 84 24 3974 3091

HO CHI MINH CITY OFFICE

• Tel: + 84 28 3821 4654

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