The Benefits of Payroll Outsourcing
About 40 years ago, payroll was seen nothing more than a company’s regular task at bookkeeping (being either fortnightly, bi-monthly or monthly – depending on the company). Traditional bookkeeping tasks were done manually and recorded on computer files. In the modern world today, a new perspective has emerged on payroll. It is now seen as a form of strategically rewarding and retaining your existing employees. Additionally, it has grown to become outsourced payroll with the development of powerful payroll, workflow driven HR software and more recently, employee centric HRIS with all the mobile benefits. Its integration with these technological advancements have made managing HR functions and particularly payroll easier. Miscalculations and errors are no longer a concern as the intelligence of technology prevents it all.
On the surface it may appear as though the benefits of payroll outsourcing married with automation from HRIS only coincides with zero human error. However, there are deeper and underlying advantages in approaching payroll outsourcing. By slowly understanding what payroll outsourcing can do for you, you’ll understand how it creates a bridge towards organisational growth. To really begin moving forward in the corporate industry within this modern society, it starts with adopting new developments that have been designed to make tasks easier.
The 5 Big Advantages of Payroll Outsourcing
Not taking into account the fact that payroll outsourcing minimises errors and miscalculations, payroll outsourcing additionally offers:
1. Time saving for core functions.
Payroll is a time-consuming task. The fact that payroll has now been outsourced to an automated software system means the technicalities of doing the task is no longer at hand. HR software and HRIS has been created to be intelligent enough to manage these tasks and specific details that require attention. Specific tasks that are considered technically challenging or daunting include staying updated on new legislation and statutory changes relating to HR. With payroll being managed under these systems, it allows time to be used elsewhere particularly areas that require more attention.
With more time available, you are able to direct it towards the company’s core functionality. Focusing on the company’s core will allow you to speed up progress towards growth. Essentially, this boost towards growth for the overall company will ultimately convert into favourable figures and a positive bottom line.
2. Cost & Risk Reduction
With payroll having understood to be a time-consuming task, it additionally comes with the risk of added costs. The fact that inevitable miscalculations and errors will occur, translates into costs itself.
These costs can be perceived in two ways:
– Late penalties will apply when payroll is not filed and adhered to in time to regular audit checks. With the pressure of the rush to complete it in time, mistakes and errors will be likely to occur. Of course, these errors have domino effects in reshaping figures, creating them to be either under or overpayments. Under or overpayments will undoubtedly affect the company’s productivity.
– On the receiving end, employees receiving their false payments will be affected adversely. The issue of false payments (being either under or over) will affect their performance and ultimately their contributions to the company’s growth. In addition to this cost, their perception of the company’s ability to manage them will adversely change. Employees have needs the same way anybody else would. Their basic needs in a corporate workplace setting narrows down to simply, excellent management. If this criterion is not met, difficulties with retention is a subsequent problem to follow.
3. Data Security
Each employee’s data is to be given and kept confidentially by their employer. There are many threats in the workplace environment where data can be hacked and be at threat of tantalising with. It’s this agreement to hand specific personal information over to an employer in exchange for key confidence. The efforts in keeping this specific data safe is time-consuming itself and will of course result in additional costs.
Payroll outsourcing has the ability to keep every employee’s details safely. HR software and HRIS is now more intelligent than ever to quickly spot fraud and signs of data tampering. By taking hold of this feature of payroll outsourcing in HRIS, you are able to securely keep company and employee data safe. The benefits of doing so include trust with between you and your employees along with saved time to be directed towards your core.
No matter how efficient a company is, it is till by nature obligated to follow the statutory & legislative requirements. This is particularly critical in payroll processing, where a company has taxation, superannuation, Modern Award and Enterprise Agreement rules to follow. Simply put, payroll outsourcing improves compliance in both legal and financial fronts.
5. Payroll Expertise on Demand
With payroll outsourcing redirected to the hands of Certified Payroll Experts, you now have a team of world class experts monitored and managing the process. What this peace of mind truly presents to you and the company is an opportunity to on-board a team of new skills and capabilities. The more diverse your team is in handling the one system that ties your company together – the more likely you’ll see positive flow on effects towards growth and competitive advantage,
6. Access world Class Value Add Services
One of the great this about partnering with an outsource payroll provider is the access to great HR Software, fully integrated with the payroll system.
HRIS not only makes payroll management simple, it allows you to:
– Enter new employees
– Communicate with employees
– Access and update personal employee information
– Enter time reporting information
– Create performance reviews
– Access training records
…and much more.
HRIS also offers a range of services that eases more than just payroll itself. Due to the scope that HRIS covers for a HR team, companies have grown to become more efficient. What HRIS has enabled employers to access, including payroll services includes:
– Generally speaking, all of HR
In essence, as a manager in a corporation looking to steer your company towards success, it begins searching for productivity enhancements. These productivity enhancements of course, need to be within profitability boundaries that do not hinder it. Payroll outsourcing is of course a means to productivity enhancement as seen with the benefits discussed above. Ultimately, it is a worthwhile step for modern leaders to look into adopting as the end result is none other than growth.