3 Reasons Why Payroll is Important in an Organization | payroll services in Dubai
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3 Reasons Why Payroll is Important in an Organization

It cannot be argued that payroll is one of the important aspects of any business there is. Not only it is the driving force behind the productivity and efficiency of your employees, but it is also an area in an organization that needs to be done in compliance with the laws of the country that a business is located. Even if the importance of payroll services has been written about a lot of times, there is still a stigma on the payroll as a simple non-core function that is taken a tad lightly because it does not directly generate revenue.

Knowing the reasons for the importance of payroll and actually believing it as an influential part of a business can help you to take those reasons to your advantage.

UAE and Its Outsourcing Industry

There are a lot of payroll services in Dubai alone. Companies like small- and medium-sized enterprises (SMEs) usually opt to outsource, which means that there are a good number of payroll services in UAE that business owners can benefit from.

With startups that focus on having their business to grow and expand, entrusting this function to an outsourced company is an understandable, if not advisable, step to take in order to focus more on strategies and plans for getting more sales.

What is Outsourcing?

In simple terms, outsourcing is paying a person or a firm to do certain functions (usually, the non-core ones) of your business that you do not have time to do. Typical functions that are outsourced are payroll, accounting firms, HR outsourcing services, PRO, etc.

This kind of practice can be noted among startups and SMEs because of the lack of time or staff to handle the said areas of a company.

What are the Three Points that Make Payroll Important?

Boosted Morale

As mentioned above, payroll is a driving force behind a business’ productive and effective employees. This is one of the main reasons why they are even working for you. As salary is an essential part of a human’s life, this raises morale in a person.

This is why giving your employees the assurance that a timely salary will be received by them is imperative as it keeps them productive, effective, efficient, and more. On the other hand, if salary is late or inconsistent, this can cause problems internally in your company as most, if not all, of your employees, will not be able to completely focus on what they do.

Better Performance

Although salary is a good enough reason to stay in a company, adding benefits in their salary package and other bonuses for your employees whenever they reach a milestone or achieve a significant breakthrough for your company can boost their performance even more. This can be one of the reasons that they will work harder that will, in turn, cause wonderful results for your business.

With payroll doing the magic to your employees, you can be sure to have a smooth running of your business because of the good aura and atmosphere that have been set in your office because of a positive way of using your payroll to inspire your employees more.


Simply stated, when a company has proper payroll, it pushes them to be compliant with the rules and regulations of a country with regard to employment. When duties and responsibilities as a business are properly carried out, it can result in good remarks about you by the government authorities. In this way, a company can be viewed as a company that greatly values and respects its country’s laws.

Meeting a government’s requirements when it comes to payroll establishes a company’s reputation for being a trustworthy business in the eyes of the government.

Leading Firms for Payroll Services in Dubai

Even if it is not one of the revenue-generating function in a business, it drives the people who generate revenue in your company. When payroll is properly handled, it can give off a sense of a company’s stability.

With an efficient payroll department, a business’ image is seen with high regard because of its compliance and respect to the laws. This is why properly handling your payroll is important.

Farhat & Co. is one of the top payroll services in UAE that can take care of every single detail you need to be handled about your payroll.

Our experience of more than 30 years can assure you that we only deliver the best quality service that you deserve. We ensure that our clients will walk out of our office happy because we genuinely care about the expansion and growth of their businesses.

You can find out more about payroll by contacting us today and booking a free consultation with us if you would like to discuss your situation with us.

Ervee is a CPA with international experience in Tax and Accounting. He has over 12 years of experience in accounting and bookkeeping and over a year in VAT implementation, registration, and accounting in UAE. He regularly drives out inefficiencies in company operations and loves the challenge of helping clients find additional ways for an easier and improved compliance and verification of transactions. Read more