Since the beginning of the 2000s, experts have advised on outsourcing non-core jobs. A non-core job are jobs considered as dirty work – important, but you are not profiting from. A non-core function may be essential, but doesn’t make your business stand out from competitors. Back-office activities such as payroll are some of those considered as non-core functions.
As such, they are potential candidates for outsourcing.
But first, let me ask you this question? What do you actually gain from outsourcing payroll? Do the benefits you get out of outsourcing outweigh that effort?
Let me cite several long-term advantages to be gained from outsourcing payroll to offshore payroll services:
Established businesses can afford to have a dedicated payroll department. However if you are just a start-up, an in-house payroll service sure costs you moolah. If you add up the price it takes for the hours your employees spend on payroll-related activities, plus payroll software costs, training costs, printers, printing and distributing pay slips, creating tax documents etc., you could be surprised by the result when you compare that amount to the cost outsourcing can save for you.
The benefits of outsourcing the payroll include freeing up these resources and allowing your staff to concentrate on the profit-driving tasks. You may even be able to reduce your staff’s size. Outsourced functions also give you better scope for expansion of your company with scalable services suited to your business.
It is really nice to have a highly experienced team at your disposal, which is something you are unlikely to have with a small in-house payroll team. A good outsourced payroll service provider will know all the ins and outs of the industry.
Payroll mistakes can cause unnecessary stress. When you outsource, you are paying them for their skills, knowledge and strong SOPs.
Working with an outsourced payroll service means output, speed and quality won’t vary in accordance with holidays and sickness. In an in-house setting, you always run a risk that you may lose one of the key members of staff that deal with your payroll – too bad, their skills go with them. If this happens, you may find it extremely difficult to replace them. You also won’t have to spend time training new people or helping them to understand your business’s payroll system.
Do you have the time and energy to closely supervise your payroll staff for time and rate abuses and other shady activities? Most payroll bureau have technologies that can spot and alert clients to various types of payroll fraud, such as payment manipulation.
Do you know about the peace of mind that outsourcing payroll services can bring to a business owner? Enjoy far less headaches, no hassles, no stress and no worries. You, on the other hand, can just go and focus on running your business, knowing you payroll obligations are being handled correctly, efficiently and lawfully.