Make Better Use of Your HR Department by Outsourcing Payroll

29 Jun 2017

Running A Temp Agency

Startup needs are changing, could you be better utilising your HR department if you outsource your payroll processing?

 Part One of New Millennia’s Three Part Guide to Payroll

Make Better Use Of Your HR Department By Outsourcing Payroll

Traditional departments within an organisation are changing, with some departments becoming redundant, some being created and others simply altering and evolving with today’s startups changing needs.

With record numbers of new startups, 650,000 new startup businesses in the UK last year (UK Business Angels Association), organisations are ever changing.  Needs can change and evolve with each new startup and with the technology and tools available to them.

Take a look at your HR department – traditionally this department spent a large chunk of their time processing payroll.  However what if you could free up time in your HR department and take payroll processing out of the equation?

Outsourcing payroll is a strong option for many startups and SMEs; this takes the task of processing time-sheets and payroll out of your organisation, a time and money saving investment.   This leaves your HR department better equipped with time devoted to your startup’s needs without splitting focus. Don’t waste your HR department when it could be better used to help your organisation grow from brand new startup to the company you aim to develop.

If you are a startup you may not have enlisted an HR department or person at all yet, perhaps you can question whether you actually need one or not but you can at least make their role within your startup as effective as possible.  You may think, as you are just beginning, that you don’t need to bother with an HR department, however you may find there is a lot more to an HR department beyond the payroll processing.

Without the distraction of your now outsourced payroll processing, your HR department can focus on:


You HR department can ensure that your startup complies with your sectors regulations and laws. For startup recruitment agencies, this can keep you on the right track concerning agency worker regulations, and more generally equality in the workplace and providing sufficient equipment and facilities for all abilities where necessary.  With HR on top of this you can start as you mean to go on building a strong, compliant company, while your own efforts can focus on developing your business and meeting your next client.


In terms of building a team who will make up and carry your company forward, recruitment is a fairly important and often time consuming task. Your HR department can help strategize and streamline your recruitment process, whilst also carrying out at least the beginning of the task of actual recruitment, a helpful department to have around.

Conflict resolution

Every startup’s aim is that this won’t be an issue for them; however there will inevitably be some level of conflict as some point between staff.  With HR in place, and their previously mentioned regulations, you can be sure that your startup will have an appropriate procedure to deal with said conflict.  And HR are able to put this into action to either resolve or better, prevent, these conflicts or disputes.

Training and development

With the interest of developing and making the most of your skilled team, partaking in training and development programmes or sessions is a positive move.  An HR department could ensure that any opportunities, mentoring programmes or ideas that could develop your team’s skills do not become a missed opportunity.

Take the lengthy task of payroll processing out of your HR departments equation and you have a much more proactive and productive HR department aiding your startup journey to success.

Now that you have freed-up your HR department, find out how to get the most out of them with New Millennia’s Back Office Guide.

Part two of our payroll guide can be found here.

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