In today’s business environment outsourcing areas of your business to experts who can provide a reliable and cost efficient service is generally viewed as being a sensible decision.
Payroll is one such area that has a proven track record and evidence as to the benefits it can bring a business.
Outsourced payroll is now within the reach of all sizes of business and organisation from the largest companies looking to streamline their operations to small and medium sized organisations faced with problems of compliance and recruiting, training and retaining staff.
How can payroll outsourcing help your business?
For many companies, payroll outsourcing is initially viewed as a cost saving exercise. This may be the case, but it will depend on how efficiently you have been running your payroll. What it will certainly do is alleviate the burden of variable costs such as updating technology, staff recruitment and training.
Free-up time to focus on core activities
Although costs may be the initial driver, the primary reason businesses choose to outsource is that it frees up time and resources to concentrate on more strategic areas such as recruitment, staff retention and performance that have a direct impact on profitability.
Peace of mind gained from expertise
With the constant stream of new and complex legislation affecting payroll, keeping up with changes and ensuring your payroll is compliant is a real headache. By outsourcing to payroll experts this is one less thing to worry about.
Increased payroll efficiency
Despite often being viewed as a ‘back office’ activity, payroll is fundamental to the life of the organisation. If people don’t get paid, the company will not exists in the very short term. If people are not paid accurately, it will have a negative effect on staff morale and motivation.
Decrease the risk of relying on one person
Organisations that rely on a single member of staff to handle the payroll are placing themselves in a highly vulnerable position if that person leaves or is absent.
Improve management information
One benefit of payroll outsourcing that may not come first to mind is the impact it can have on the quality of management information. By choosing a provider that offers tailored management information and reporting, your payroll can bring rich and timely information into your business.
Payroll data is extremely sensitive and in light of this payroll outsourcers have developed extremely high levels of data security including online payroll approval and robust disaster recovery and business continuity processes.
Download our comprehensive Guide to Payroll Outsourcing.