A company (and its employees) can benefit significantly when a business’s payroll processing is managed externally. Discover the top 9 outcomes of outsourcing your payroll management services.
According to the Australian Payroll Association 2015 benchmark report, payroll management companies represent almost 30% of the market – a statistic slated to increase in coming years.
This is undoubtedly a strong indication of the proven benefits businesses can receive by delegating the responsibility of payroll processing to an external provider. We review the nine best outcomes for business opting to engage fully-managed payroll services.
Accuracy & Accountability
Having reliable and accurate information in which your business can rely on is essential for managing costs, forecasting and planning.
The consequences of payroll inaccuracy in your business accounts can be far reaching – disgruntled employees, invalid reporting, and the risk of breaching government regulations just to name a few.
In general, outsourcing payroll services leads to a greater level of trusted information and less errors due to the use of proven processes and technology.
A Consistency of Service
An in-house team’s ability to process pays at a consistent pace and hit scheduled deadlines is largely impacted, not only by the level of capabilities of employees but also by inevitable absences, holidays, illnesses and turnover of payroll staff.
A key advantage of engaging the payroll outsourcing services of a well-performing company is the guarantee of a consistent service regardless of personnel departures or absences.
The critical obligations of fulfilling the statutory and legislative requirements of payroll processing can be a heavy burden on both payroll staff and company resources.
Staff managing your payroll need to maintain a high standard of industry knowledge to ensure they are not unwittingly risking possible breaches.
Failure to do so could equate to the costly risk of Fair Work fines, retraining staff and loss of employee confidence in the company.
A payroll company is often better staffed, equipped and informed to manage payroll services to the highest level of compliance assurance.
Access To Expertise
Depending on the size and resources of your business, you may or may not have access to the level of expertise required to manage the intricacies of your payroll system efficiently.
By outsourcing your payroll you will gain access to a team of experts that are highly trained and proficient in all aspects of payroll management – a team you may not be able to afford in-house.
Through the support of a professional payroll company you can gain expertise in applications and the implementation of systems and processes that will deliver companywide efficiency gains increasing productivity.
Industry Best Systems
The continual development and integration of a payroll software solution that delivers an efficient payroll processing service can be expensive to invest in and maintain.
Through outsourcing your payroll requirements, you benefit from modern technology, best practice procedures, automation and expertise that was previously only available to better-resourced companies with large payroll teams.
Value Added Services
The size of your in-house payroll team as well as the additional responsibilities of other HR or financial tasks they are required to undertake may mean they have little time to do anything else but process pays.
By outsourcing, your vendor can value add by providing real time data, expert consultancy and valuable insight into your payroll process and labour costing.
This knowledge can be further supported by the integration of technology and manager dashboards providing reports into labour costs and employee performance that will enable better business decision making to increase productivity.
Concentrate On Core Business
Outsourcing also provides the added benefit of enabling your staff to focus on the core activities of your business rather than the repetitive transaction management.
When specialist HR and finance people support managers and employees to concentrate fully on delivering your core business objectives, you will drive efficiencies across the board and gain a competitive advantage in your market.
Outsourcing can deliver a company significant savings through the reduction in capital costs, head count and technology.
Also, through the use of modern technology, access to valid data and real time costs will remove costly waste and increase productivity through better managed labour costs.
Scalability enables you to rapidly respond to market conditions without waste or an unnecessary strain on internal resources.
Eliminates the Risk of Fraud
No business wants to think their employees are stealing from them but unfortunately it can – and does – happen.
There are numerous examples in the corporate landscape of payroll employees taking advantage of their level of authority and access to payroll and finance systems to defraud a company of millions.
A payroll service provider can deliver strict controls, approvals and processes to eliminate the risk of fraud.