DavidEven though it might seem scary to think about outsourcing such a delicate aspect of your company, more and more people are doing just that. According to recent Statista data, 38% of organizations globally either fully or partially outsource their payroll operations, and this percentage is clearly on the rise. According to research conducted here in the UK, a much higher percentage of companies (61%) outsource their payroll operations. The way that companies handle their payroll function has changed, and this can be linked to how HR is evolving. Payroll was (and still is) frequently seen as a crucial component of HR’s duties. However, since HR is now viewed as a crucial strategic business partner, outsourcing to a managed payroll solution can relieve HR of labor- and time-intensive administrative tasks and result in a host of other wonderful business benefits, such as:
It saves organization’s money
You are paying someone to perform a task for you, so this may seem counterintuitive. Consider it this way, though: your company will save money by outsourcing payroll processing rather than hiring a specialist or team of specialists and all associated overhead. It’s important to keep in mind that you’ll benefit from more than just financial savings. Not to mention the time your company and diligent HR staff will save. They will be able to focus on more strategic goals like boosting employee attraction and retention, company productivity, and company culture since they won’t have to worry about payroll-related administrative tasks.
Higher data security
The technology, know-how, security measures, and industry certifications of many trustworthy payroll providers will ensure the security of your payroll data. A trustworthy managed payroll provider will, in particular, be certified ISO27001. A company seeking ISO27001 certification must have solid procedures and infrastructure in place to guarantee that data is handled and stored appropriately. Additionally, businesses providing ISO27001-certified goods or services undergo recurring audits by a recognized organization to make sure they continue to operate legally.
It helps stay compliant
Payroll is an area where the details really matter. The complexities of PAYE, HMRC’s legal obligations, and the procedures necessary for efficient payroll management can all be handled by outsourcing your processing to a seasoned managed payroll provider. For instance, statutory payments and deductions, such as maternity, paternity, adoption, sick, and shared parental leave, are all computed automatically with a smart managed payroll solution. Furthermore, the service offers essential automatic updates through the Data Provisioning Service (DPS) of HMRC. Payroll outsourcing makes even more sense if your company is growing quickly. This is due to the fact that you will gain from having more time to concentrate on expanding your business as opposed to staying current with payroll compliance requirements.
It allows for tailor made services
A lot of reputable payroll service providers can offer packages that are tailored to a company’s unique requirements, and these are frequently also flexible. This can be considered the most important amongst all the 5 reasons. This implies that you will typically only pay for the services that you actually require. You can customize your package to meet your company’s needs by working with managed payroll providers. For example, you might need payroll processing for multiple companies or schedules, or you might need different payment runs on a monthly, four-weekly, fortnightly, or weekly basis. All of this is particularly beneficial for companies that are expanding, diversifying, or perhaps finding it difficult to keep up with HR demands.
Access reliable and accurate services
Finally, by outsourcing your payroll to a qualified and seasoned managed payroll provider like Direct Payroll Services, your company will avoid costly or humiliating errors. As previously stated, when it comes to payroll, the devil is in the details, and nobody enjoys receiving an incorrect or erroneous payslip at the end of the month! In addition to having procedures in place that have been tested and proven to prevent payment errors, managed payroll providers also have the know-how to make sure that, in the unlikely event that an error occurs, it is promptly and efficiently corrected.