The shortage of skilled workers has turned into a general labor shortage. In many areas, there is a lack of successors. This challenge will intensify in the coming years, especially as the ‘baby boomer’ generation retires.

As a result, the strategic importance of HR work is increasing. More than ever, it is important to make oneself attractive to workers and to bind them in the long term. In short: If companies cannot keep up in the ‘war for talents,’ they face major challenges in service delivery. HR managers will be increasingly measured against this.

In this context, the potential of artificial intelligence and automation should not be neglected. However, in the short and medium term, it is doubtful whether technology can really close the gap created by a lack of workers. As promising as automation may sound, the path to it is challenging. So, do you want to rely on AI to solve your problems?

HR departments should be vigilant and strategically position themselves now. They have long become victims of the skills shortage, especially in less strategic areas such as payroll accounting. Here, too, there is a lack of successors for various reasons. On the one hand, there is no classic career path for payroll accountants, and on the other hand, the job profile is not attractive to young people.

Therefore, it is advisable for HR departments to focus now. The focus is on supporting the management to positively accompany automations and at the same time providing enough workforce in the short and medium term. HR can support this through employer branding, professional recruiting, onboarding programs, benefits, and retention plans.


Outsource “annoying” topics

To achieve this, however, space is necessary. A proven way to do this is to outsource non-strategic issues to a service provider like CONVOTIS. This creates capacity for strategic HR work. The service provider takes over, for example, the often perceived as annoying issue of payroll accounting, which solves a number of problems:

  1. The own successor problem in the area of payroll accounting is solved.
  2. The urgently needed space for strategic HR tasks is created.
  3. The risk of sickness or termination in the area of payroll accounting is shifted.

In addition to these three main reasons, there are numerous side reasons, which we would be happy to advise you on. This also applies to calculating the ‘Total Costs of Ownership’ (TCO), which can show that working with a professional service provider, taking into account all internal costs (employees, training, equipment, etc.), can even be more cost-effective. However, we are convinced that today the cost question alone should no longer be in the foreground, but rather the shift of risk and the creation of urgently needed spaces for HR work.

It should always be borne in mind that payroll accounting, although considered non-strategic and administrative, is still crucial for the satisfaction of employees.


HR departments that, for example, outsource payroll accounting should consider the following important points:

  1. Service: Make sure that the selected partner not only promises good service but also delivers it. Inquire about references.
  2. Training and language level of the service provider’s employees: Payroll accounting is very specific. Ideally, your service provider relies on employees in Germany.
  3. Software: Choose software that is a) scalable (i.e., usable for companies of all sizes) and b) fully integrable into the existing HR system landscape. Interfaces can lead to problems in day-to-day business and should be avoided. Fully integrated HR solutions are the better alternative.
  4. Communication with the service provider: This should always take place at eye level. Collaboration via a ticket system and Excel spreadsheets will not bring the desired results. Therefore, question exactly how the service provider shapes the collaboration.
  5. Hidden costs: Check exactly what you are buying. Are software updates and legal adjustments included? Are year-end work covered?


Have we aroused your interest? Feel free to contact us and let us advise you on what the optimal solution for you could look like.