Unveiling the Monthly Workflow of Outsourcing Company

Outsourcing company offers significant benefits to businesses by allowing them to focus on their core activities without getting bogged down by administrative tasks such as recruitment, employee management, and payroll processing. However, do you know how an outsourcing company works every month to ensure everything runs smoothly? Here are the workflow of an outsourcing company every month:

1. After Agreement is Done

Once the agreement between the outsourcing company and the client is reached, the workflow begins. This includes several key steps such as sourcing, recruitment, and job offers.

2. Collecting Documents

After the candidate agrees to the job offer, the outsourcing company collects all necessary documents. These documents include personal identification, cover letters, diplomas, and other supporting documents.

3. Contract Signing

At this stage, the employee and the outsourcing company sign the employment contract. This contract includes everything related to the rights and obligations of both parties.

4. Onboarding

The onboarding phase is conducted to prepare the new employee for their role. Employees will receive orientation about their roles and responsibilities at the client company and any know-how on system that they need to use. 

5. BPJS Ketenagakerjaan (Employment) and BPJS Kesehatan (Health) Registration and Payment

An outsourcing company is responsible to register employees for BPJS Ketenagakerjaan (Employment Social Security) and BPJS Kesehatan (Health Insurance). This ensures employees receive adequate social and health protection.

6. Salary Calculation and Client Confirmation Process

After completing all administrative processes, the outsourcing company waits until the cut-off date to begin salary calculations. On this date, the company collects employee attendance data and creates a timesheet detailing working hours and attendance. Based on this data, the company calculates the salary, allowances, and other compensations owed to employees. Once the calculations are complete, the company sends the results to the client for confirmation.

7. Salary Payout Process

Once the client confirms the salary calculations, the outsourcing company proceeds with the salary payout process. This involves preparing the necessary funds, verifying the accuracy of salary details, and initiating bank transfers to employees’ accounts. The company ensures that all payments are completed on time and provides employees with detailed pay slips. Any discrepancies are promptly investigated, and all transactions are documented and archived for future reference, maintaining transparency and accountability.

8. Client Invoicing

After the salary payouts, the outsourcing company prepares a detailed invoice that includes the total salary costs and any additional service fees. The invoice is reviewed for accuracy before being dispatched to the client. The company follows up with the client to confirm receipt and address any question to ensure timely payment. Payment status is closely monitored, and all invoicing records are reconciled and archived for financial auditing purposes.

9. PPh 21 Reporting

Lastly, the outsourcing company reports and pays PPh 21 (income tax) for all employees according to applicable tax regulations.

To note, through all these stages, it is not uncommon for the talents provided to be unconfirmed by the client. In response, outsourcing companies generally respect the client’s decision and continue to fulfill their duties for other candidates or employees.

By following these steps, the outsourcing company ensures that every employee receives their entitlements on time and in accordance with the regulations. Moreover, they maintain good relationships with clients by respecting every decision made by the client regarding talent confirmation.

Why Choose Outsourcing Services from RecruitFirst?

If you want to focus on developing your business without getting overwhelmed by the complexities of employee administration and management, using outsourcing services from RecruitFirst Indonesia is the right solution. We have the experience and expertise in managing the entire recruitment and employee administration process, so you can focus on what really matters for your business. Contact us now and experience the benefits of a professional and efficient partnership!