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Advantages of Outsourcing HR & Payroll Processes

by: Sarah Joson

Thursday, January 23, 2014 |

Benefits of Outsourcing HR & Payroll Processes

Small business owners often overlook HR and payroll processes as they are usually preoccupied with how they can generate sales to get their money back. On average, small business owners spend 7-25 percent of their working hours for employee paperwork. One of the known solutions that could help free up their valuable time is outsourcing.

A post at RealBusiness.co.uk lists the key advantages that HR and payroll outsourcing has to offer.   

It will help increase productivity.

Apart from freeing up time, outsourcing helps operations increase productivity as the money saved through it can be allotted for commissions and incentives for the employees. Satisfied and happy employees are found to perform better, and this could lead to better outcomes.

You will be compliant with industry standards.
HR and payroll outsourcing providers are known to strictly follow rules and regulations of the industry. One of which is proper calculation of tax according to the HMRC’s code of practice. In fact, the complexities and rapid changes in HMRC rulings have fuelled HR and payroll outsourcing activities for administrative processes.  

For businesses that keep HR and payroll processes in-house, they would need to allot time and budget for training to guarantee that all the employees are well informed, and to reduce future risks.

You will get significant cost savings.

Additional staff for HR and payroll processes could mean additional work stations and overhead costs. However, business owners are still reluctant to outsource because they think they will lose control of the operation, but providers have matured over the years and the ones with proven track record will assist you in assigning a point person who will oversee that operation for you.

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