Tech transformation and the wide use of outsourced service providers may be changing HR's role
With digital disruption transforming the economy, HR professionals will not only have to face the challenges related to a changing workforce. Prevention of data and safety breaches may also soon come under HR’s list of responsibilities.
This is especially due to the wide use of outsourced service providers (OSP). HR professionals thus have to upgrade their knowledge and be acutely aware of ongoing developments.
Khai Juat Chek, director of client services at TMF Singapore, shared that she expects the payroll function to involve more AI and automation in the coming years.
As the function evolves digitally, so will the risks to the organisation’s safety and security.
For HR in financial institutions, the Association of Banks Singapore (ABS) and MAS have set strict guidelines to help minimise data and safety breaches caused by the use of OSPs.
ABS and MAS have also introduced the OSPAR accreditation – an OSP audit reporting system – in recent years to ease the burden of HR professionals. TMF Singapore received its OSPAR attestation recently – and was one of the first payroll service providers in Singapore to do so.
“If an OSP is not OSPAR accredited, the financial institution is required to perform due diligence and/or onsite visits to the service provider to determine whether their processes and IT security controls are compliant to ABS’ guidelines – this means additional work for HR,” Chek said.
OSPAR helps financial institutions prevent any safety breaches due to regular automatic assessments and controls put in place to ensure that only the right people have access to the data.
However, this does not mean that HR can be complacent and simply pick an OSP without conducting thorough research first.
“HR has to be selective about who they outsource their services to,” Chek said. “They have to now carry the responsibility of ensuring that whichever OSP they engage meets all the requirements of [the local authorities].”
Click here to read the latest Annual Global Payroll Survey 2017 by TMF Group
