Why You Should Consider Payroll Outsourcing

In most companies, administrative activities such as payroll are non-revenue generating and do not affect the overall strategy or the running of your core business. If this is the case, it may be better served as an outsourced function. The question may linger, “What do I gain from outsourcing my payroll?”, However, you gain a lot from it. Namely;

  1. It frees up time and resources
  2. It reduces overall costs
  3. It diminishes the risk of data exposure
  4. It gives you access to cutting edge technology
  5. It grants you access to the expertise t of Payroll Professionals.

Let’s examine each of these to reflect upon the benefits for your business;

  1. It frees up time and resources

Payroll is a critical function of your business. Though it may not affect the revenue generating element of your company such as growing sales, an inadequately completed payroll can affect your employees and ultimately your bottom line.  With administrative tasks ranging from taxes to employment law, timesheets and benefit deductions, all of which need considerable time and attention to detail to deal with, it can drain away time and attention from your business. Payroll Outsourcing frees resources to focus elsewhere in the company.

  1. It reduces overall costs

If you are currently managing your payroll, or have an in-house department, you may think outsourcing is too expensive in comparison. Instead, reflect out how many hours you are devoting to payroll functions. Gauging how much you’re spending compared to the potential costs of outsourcing payroll. Don’t forget those smaller elements, be sure to include the costs for tasks such as payslips, dealing with staff inquiries and more.  The money saved by outsourcing the payroll function can be invested back into the business for further development and growth.

  1. It diminishes the risk of data exposure

Payroll and data security are forever linked, especially considering GDPR. They go hand in hand due to the amount of information required to complete the payroll function so a leak of any data can compromise you as an employer as well as your employees. Does your business have procedures in place to protect such information? A reputable outsourced provider will have systems in place to ensure the safety of such data.  Therefore, data safety and the reduced risk of exposure is the most considerable benefit of outsourcing your payroll function.

  1. It gives you access to cutting edge technology

Another consideration for outsourcing is access to cutting edge technology. Outsourced providers operate on the best Payroll Software available, for example, our outsourced function uses our own bespoke software Megapay to run payrolls. Such technology will be updated to the latest requirements for tax and legislation built into the software ensuring payroll accuracy.

Employees also require technology as part of their payrolls, such as self-service, email payslips and payslip mobile apps. On top of that, the explosion of mobile app use is leading to a new level of expectation, as employees want their payroll information on demand and on the move. Can your business support these demands in the future?

  1. It grants you access to expert Payroll knowledge

The team employed within an outsourced provider are responsible for processing hundreds of payrolls, so are highly experienced and seasoned Payroll Professionals – they are the payroll experts. They will work with efficiency and confidentiality an all payroll matters and have the latest knowledge. Inevitably, questions will arise, and you will have the experts on hand to assist.