Running a company is a huge responsibility, even if it is liberating to be the boss instead of a frustrated employee.
At times there may seem to be an almost never-ending stream of administrative tasks to carry out, and although you may be able to defer some from time to time, there are certain jobs which need to be carried out on time in order to avert a disaster. Your payroll operations certainly fall into this category.
Because payroll is such a critical task an increasing number of companies – small, medium and large – are opting to outsource the operation. Indeed you may have wondered yourself whether the transition is worth considering. Whether you have never thought of it or can’t decide if outsourcing is right for you, here’s a list of just some of the benefits you could enjoy.
Ensures a critical task gets completed on time
Your workers rely on you to pay their wages on time; if their salary isn’t credited to their bank accounts when due, many won’t be able to pay their rent or mortgage or even put food on the table for their family.
Outsourcing your payroll can have many benefits.
Therefore, not getting it done when its due simply isn’t an option. It’s one of the few disasters which could potentially bring your business grinding to a halt. And it’s not just a matter of paying the wages; it’s making sure you process everything else in good time too. If an employee has lodged an expenses claim, failing to pay them on time could once again, leave them financially short. This breeds resentment and sends staff morale plunging, both of which are suicide for your business.
An outsourcer has the capacity to ensure that the job gets done quickly, efficiently and on time, guaranteed every month. All without you having to lift a finger.
There are some jobs where you don’t need to be a professional to give it a decent stab. For example, if your office cleaner quits it may be annoying but you can probably make a half decent job of it with the help of Henry the Hoover and a can of Pledge.
Payroll services are something very different however.
There are strict regulations and requirements which must be upheld – and rather annoyingly, these can change frequently. You therefore need to ensure you are up to date in order to remain compliant; if you breach the current regulations you could end up with a hefty penalty. At best.
An outsourcer is always up to date with the latest moves in the industry and will be able to ensure as a business you are fulfilling all your requirements.
Some individuals consider outsourcing as a risky venture but in reality the reverse is true: holding payroll services within a company is a far more dangerous approach.
As an absolutely bare minimum you should always have three people trained for each task: this allows for one being on holiday, one being off work sick and one left completing the work. Of course, you may even face a situation where three isn’t enough if you are really unlucky!
But what do you do if the payroll work doesn’t even require the services of one individual full-time? Employing three or more simply to cover your risk simply isn’t cost-effective.
Using an outsourcer means tapping into a large and qualified workforce where there will always be someone ready to pick up the necessary tasks, regardless of absence and illness. This provides your business with an unprecedented level of protection which simply cannot be gained from keeping payroll in-house.
Provides capacity for expansion
Regardless of how well your business is performing, the chances are that you have one eye on how to increase or expand your profitability: this is the aim of almost every company in existence.
But what would happen if you were given the opportunity to suddenly expand; could your payroll staff cope? Taking on individuals in this very technical area either requires a long training curve – and time may be a luxury you simply don’t have! – Or deep enough pockets to pay for permanent members of staff who are experienced and/or qualified.
Outsourcing your payroll can save you lots of time.
Using an outsourcer means you are always primed for expansion; if you need to up the amount of services you need, you simply inform your provider. This means you don’t require as much notice to ramp up your production and any peaks in payroll demand can simply be swallowed up by a large and professional organisation.
Payroll operations are complex and technical and can demand a lot of your time which may be more productively spent on other areas of the business. By outsourcing the operation you can provide your company with the attention it deserves, as well as enjoying the protection, knowledge and expertise that an outsourcer can provide.
Image credits: 401(K) 2013 and Kheel Center, Cornell University