Operating a business means balancing all aspects of the front-end to the back-end operations. Most businesses know how to delegate their tasks to the right employees but sometimes, as the business expands, even the most successful businesses may become overwhelmed with managing so many teams at once. Some companies choose to outsource because they want to focus on what they do best and eliminate any potential administrative hiccups that could jeopardize their company’s progress.
To maintain a certain standard of service quality, top executives must decide which roles must be passed on to the right people in the business. This is how outsourcing works, it is an agreement in which one company engages the services of another to be fully responsible for a scope of work that has been previously done in-house. Sometimes, this could mean transferring resources such as assets and manpower to another company for them to run the operations efficiently for you.
On a larger scale, transferring employees under the care of another company is termed as, “Human Resource Outsourcing” and it encompasses a few other finer HR processes as well. In this article, we will cover considerations to make when deciding to outsource the payroll function.
Outsourcing Your Payroll Process
One of the most tedious administrative processes in HR is also the most popular one to outsource — payroll. When you outsource your payroll, you can expect an external specialist to handle the administrative functions of paying an employee. Research has predicted that the global payroll outsourcing market will grow at a compound annual rate of 6% from 2017 to 2021.
With technological advancements in software platforms and access to cloud computing, the services that payroll specialists can offer to clients have dramatically improved inefficiency. The payroll package you adopt should integrate seamlessly with your business infrastructure and deliver their services every pay cycle. Depending on the payroll outsourcing provider, clients can choose packages ranging from simple tax, end-to-end logging of hours clocked in, salary calculation, and the issuing of paychecks.
Why it is better to outsource your payroll matters?
Payroll outsourcing is more than just a matter of making sure employees are paid on time. It is a very complex procedure to follow through and it can get very time-consuming.
Here are the 4 reasons why you should consider outsourcing your payroll:
#1 Outsourcing lets you focus on projects that add value to your business
#2 Eliminates the risk of delayed paychecks
#3 In-house payroll can come with a hefty price tag
Companies that provide payroll services are offering solutions at a much lower cost and allowing clients a greater scope of control. The costs associated with the acquisition of technology as well as the maintenance, security, and support of the IT teams are the current main concerns of companies. By engaging with a payroll service provider, it removes all the costs associated with the administrative process of your company and ensures that your focus is on your core competencies.
#4 Accuracy in calculating payroll for temporary staff
Is it time for a change?
BGC Group is an international recruitment and HR outsourcing agency with a solid track record. We're adept at anticipating your business needs and are fully capable of providing you with intuitive solutions to effectively manage your entire HR hiring pipeline from start to finish.
Remember, you've got far more important things (such as your key business goals) to worry about. So let us help you take your mind off all that dreary, life-consuming amount of hiring paperwork with our pain-free automated processes in - recruitment, payroll services, and more.
Ready to outsource your payroll? Reach out!
*This article first appeared at BGC Singapore with the title, "When is it Time to Outsource Your HR Payroll Function?". Click here to view the original blog post.