What are the Benefits of Outsourcing Payroll Management?

While the merits and uncertainties of Brexit continue to be debated at length, there’s no doubt that leaving the EU is set to have a negative impact on the UK economy.

Last year saw the UK grow at a slower rate than Europe for the first time since 2010, for example, as while the Eurozone economy expanded by 2.7% the British equivalent achieved a rate of just 1.5%.

With this in mind, British businesses should consider refining their operations in the month ahead, as they look to reduce spending and optimise efficiencies in preparation for Brexit.

Outsourcing payroll offers a relevant example, and here are a handful of benefits associated with this decision.

Time Savings and Greater Productivity

Payroll processing has become an increasingly time consuming process, particularly for firms that are large or medium-sized.

By outsourcing the responsibility for your payroll to an external company, you can subsequently create significant time savings within your business while optimising the productivity of your staff members.

More specifically, employees can focus on their core business tasks, and invest time and money into the strategic development of their proposition.

Drive Financial and Legislative Compliance

As an employer, your business is responsible for ensuring the accurate remuneration of staff members and widespread legislative compliance. It can be difficult to achieve this internally, however, particularly without the requisite expertise or understanding of the marketplace.

Outsourcing provides a viable solution to this issue, by enabling your firm to pay staff in full and on-time while also avoiding basic errors, tax discrepancies and incorrect filings.

This minimises the risk of penalties and sanctions in the future, which is a hugely important consideration given the economic pressure exerted by Brexit.

Reduce the Cost of Payroll

In order to effectively manage your businesses payroll, you’ll need a skilled team and the very latest software. The cost of building such a team can be extortionate, however, making outsourcing a far more viable and ultimately cost-effective solution.

This is particularly relevant for small firms and start-ups, and indeed any company that employees fewer than 30 staff members. When you also factor in the potential long-term savings associated with avoiding compliance issues and greater efficiency, outsourcing your payroll management is something of a no-brainer for most firms.

It’s still prudent to perform some financial calculations before making a final decision, however, by working out how many labour hours to devote to payroll management and how much service providers are charging as an alternative.