Recruitment Company Payroll Outsourcing - What are the Benefits?
Part two of New Millennia's Payroll Outsourcing guide focused on how payroll outsourcing works, in part three we focus on the specific benefits to you and your startup recruitment company.
Advantages of outsourcing payroll:
- Time Saving
- Accuracy & Experience
- Money Saving
- Peace of Mind and Security
- Employee information and access
By outsourcing your payroll you can save your company the most valuable commodity, time. Whoever is or would be completing the company payroll can now get more productive with their time and energy and focus on the business running smoothly, your HR department, for example can now focus on their other duties. This is especially beneficial if you’re a startup, there is so much more that needs your attention and can now be completed, started or carried out better with your additional time. Time is not best spent processing payroll when you could be sourcing clients and finishing projects.
Accuracy and Experience
Payroll service companies are experienced in what they do and have a larger capacity to collect, log, process and generally deal with the information that is needed, regularly, accurately and on time, month on month or week on week. For an internal payroll system in a startup or SME you are first of all likely to encounter a bumpy start until a system is in place and even then, you are charged with ensuring on time payments and collecting and logging the correct data - mistakes will be made. This is, however, highly unlikely with an experienced payroll service. You can also be secure in the knowledge that, through your payroll processor, your payroll is guaranteed to comply with government guidelines, including tax etc.
Outsourcing the company payroll can mean seriously reduced overheads. Even if your startup employed only one individual to process the payroll, that’s one wage, training this employee in the payroll software your startup uses - another cost, the actual software itself, plus updates to either software or technology you’re using all cost your company money. These costs are all absorbed by whichever payroll service that you choose to outsource to, overall saving your startup money.
Peace of Mind and Security
It really is a simple benefit, but having the peace of mind that your payroll is being responsibly dealt with by experts and is no longer on your to do list means that you are free to focus on business development. One less worry for your working day, your payroll is as hassle free as it can be. You also have peace of mind in terms of data and personal information being kept securely, not something that now needs to be monitored by you. Payroll outsourcing companies have the means to collect and store data correctly and securely.
Employee information and access
Not all of these benefits are for your management or HR departments. All of your employees can benefit from the outsourcing of the company's payroll. Payroll services can communicate directly with your employees and give them access to their own portal or profile with their individual information. This, once more removes your need for involvement and any added hassle. Similarly you as the employer have access to relevant payroll information collated on one platform.
With outsourced payroll services you have the flexibility for your startup to grow at whatever pace it need to, without having to increase your workforce to keep up with increased payroll needs. This can very simply be arranged through your payroll processor.
Part One - Payroll Outsourcing & HR
Part Two - Payroll Outsourcing - How Does it Work?