Home Blog Transforming Payroll Management for a Global Renewable Energy Company Case Studies | Human Resource | Indonesia Transforming Payroll Management for a Global Renewable Energy Company InCorp Editorial Team 31 December 2024 5 minutes reading time Table of Contents Challenges Faced by the Client How InCorp Addresses Challenges with Payroll Management Solutions Results and Solutions Why Choose InCorp to Transform Your Payroll Management? Grow Your Business with InCorp's Payroll Expertise Expanding into a new market like Indonesia offers big opportunities but has significant challenges, especially in compliance, administration, and workforce management. Payroll management is a critical function that directly impacts employee satisfaction, operational efficiency, and regulatory compliance. Handling payroll in-house can result in mistakes, fines, and unnecessary administrative burdens for businesses unfamiliar with local labor laws and tax regulations. This case study highlights how InCorp’s tailored payroll management and HR outsourcing services enabled a global renewable energy leader to overcome payroll challenges and thrive in the Indonesian market. Challenges Faced by the Client This client is a global leader in renewable energy. The company operates in over 30 countries and is committed to driving innovation in sustainable development and clean technologies. Understanding Local Labor Laws Indonesia has very complex labor laws that require careful attention to hiring, wages, employee benefits, and workplace standards. The client lacked the local HR expertise to handle these requirements efficiently. Employee Insurance in Indonesia Comprehensive insurance was a must to retain talent and ensure employee satisfaction. However, due to one team member’s pre-existing health condition, repeated rejections from insurers delayed coverage. Administrative Gaps in HR Outsourcing The client felt the absence of local HR regarding attendance, leave, and payroll processing. The lack of structure inefficiently impacted their growth process. READ MORE:The Expanding Horizons of Yurope Steel Indonesia – A Case StudyYoung Living’s Impressive Growth in IndonesiaEOS Lens Captures Indonesian Market: Expansion Case Study How InCorp Addresses Challenges with Payroll Management Solutions InCorp Indonesia then designed and implemented a thorough program to smoothen HR and payroll management operations. These included the following: Comprehensive Payroll Services in Indonesia Payroll management was streamlined by making sure all operations were meeting Indonesian labor law standards, and this included: Accurate salary calculations and timely disbursements. Tax filing and compliance with local regulations. Seamless integration of Indonesian payroll processes with the client’s global payroll system. Customized Leave Management System Our automated leave management solution streamlined HR operations, making tracking attendance and approving leave requests easier. This freed up administrative resources and reduced errors to ensure smooth operations. Simplifying Employee Insurance in Indonesia We utilized our network to introduce the client to two well-established insurance companies. We then negotiated on behalf of the client to obtain a comprehensive policy that covered all employees, including those with pre-existing health conditions. Ensuring Local Labor Law Compliance Our compliance experts periodically provided updates on Indonesian labor regulations. This proactive approach helped the client adhere to local law, thus avoiding legal risk and penalties. Results and Solutions Payroll management and HR outsourcing have continuously brought qualitative and positive results to our clients. Our tailored solutions allow organizations to concentrate their time and energies on core activities while we bring about efficiency in payroll management and HR functions. Optimized Payroll Management The client onboarded their local employees with a robust online payroll system to facilitate timely salary disbursement and correct tax filing without any compliance issues. Based on our reliability, they renewed our services three years in a row. Securing Employee Insurance in Indonesia Despite initial challenges, we provided comprehensive employee insurance coverage at competitive rates, which fostered employee trust and improved satisfaction. Less Administrative Burden Automating leave and attendance tracking eliminated inefficiencies, allowing the client to focus on strategic goals rather than day-to-day HR tasks. Compliance with Local Labor Laws Our proactive approach enabled the client to comply with Indonesia’s evolving labor regulations, avoiding potential legal penalties. This careful approach safeguarded the client from potential legal penalties and reinforced their reputation as a responsible employer in the region. Why Choose InCorp to Transform Your Payroll Management? InCorp provides payroll service and HR outsourcing solutions to help your business succeed in the Indonesian market. Local Expertise in Indonesia Payroll Services: We applied our profound knowledge of local laws and regulations to make sure that payroll management for our client’s operation ran without setbacks. Comprehensive HR Outsourcing: Our solutions provide complete HR support, from automating leave management to solving insurance challenges. Strategic Cost Savings: The client saved overhead costs by outsourcing payroll and HR functions, thus bypassing the need to hire in-house HR staff for their Indonesian operations. Trusted Local Partnerships: Our network of local partners enables us to deliver unparalleled support for payroll services, insurance negotiations, and compliance updates. Future-Ready Solutions: Our scalable systems allow clients to expand their teams in Indonesia without concern about compliance or administrative complexities. Grow Your Business with InCorp’s Payroll Expertise Expanding into Indonesia can be challenging, but with InCorp, businesses can effortlessly navigate complexities. This case study highlights how customized payroll management and HR outsourcing solutions at InCorp help organizations overcome compliance, administration, and employee welfare challenges. Leverage our expertise to ensure smooth operations in Indonesia: Payroll Processing and Outsourcing Services: Ensure accurate and compliant payroll management tailored to meet Indonesian regulations. HR Recruitment Services: Provide end-to-end talent acquisition for local and international roles. Experience the difference a trusted partner can make in your business journey by filling out the form below. Read Full Bio Verified by Daris Salam COO Indonesia at InCorp Indonesia With more than 10 years of expertise in accounting and finance, Daris Salam dedicates his knowledge to consistently improving the performance of InCorp Indonesia and maintaining clients and partnerships. Frequently Asked Questions What non-wage compensation do employers in Indonesia usually provide their employees with? Besides the agreed-upon salary, employers typically offer other compensations such as overtime pay, paid annual leave, festive holiday leave, and insurance. How does the HR outsourcing mechanism work? As your HR outsourcing provider, InCorp signs a standard employment agreement with an outsourced employee. After this, we take care of the employee’s payroll in coordination with your company. InCorp is also responsible for paying the salary to the employee. What are the obligations related to payroll? Health Insurance and Social Security Insurance (BPJS) are mandatory. The company and the employee will bear a certain percentage, respectively. Another obligation is tax withholding. The percentage and type of taxes vary from case to case. Contact us to get information on your specific field. How many employment and hiring options exist in Indonesia? According to Indonesia’s Manpower Law, employers can hire Indonesian talents under temporary or permanent employment. Get in touch with us. 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