You invest a major portion of your total revenue in payroll. So, you should be just as diligent in managing it as you are in any other key product or service.
But unless – or even if – you happen to be a payroll expert, it can be immensely complex and time-consuming. And if errors are made, the negative repercussions can be pretty devastating, too. · Research shows that companies maintaining an in-house team for tasks like payroll and benefits administration spend 20 percent more than those that opt for outsourcing.
While outsourcing payroll is not a decision to be taken lightly, for an increasing number of businesses, it proves to be the right one. When you outsource, you free up your own and your leading staff members’ time, and you benefit from the knowledge, expertise, and resources of experts whose only job is payroll management.
When is the right time to make this move? Here are four signs that you may be reaching that point:
Watch Out For These 4 Signs That You Need to Outsource Your Payroll
1. The timeliness or accuracy of your payroll administration is slipping.
Catch it before it falls! You’ll know this is happening because affected employees will let you know via their grumbling and complaints. A well-functioning organization should be able to meet all its payroll obligations, without delays or errors.
· This may also be an early warning sign of costly non-compliance. If employees are dissatisfied, regulatory bodies and tax authorities will soon follow. A trusted outsource partner can help you dodge this bullet.
2. You’re reaching your training budget limit.
A solution you may have considered to alleviate your payroll issues is additional staff training. This could provide a short-term answer, but in the long run, it probably won’t give you the stability and reliability you need.
· Rising training costs may also be related to higher turnover. And this may come back, at least in part, to your payroll problems. People don’t want to work for an employer who can’t even get their take-home pay straight.
3. Your payroll function is top-heavy with managers.
To avoid employee unhappiness and even potential harm to your reputation, you may opt to promote more and more trusted team members into payroll management positions. Again, it’s an admirable
move, but you could probably better utilize their talents elsewhere; for instance, in new product development, sales, and marketing or customer service, versus pinning them down to payroll issues week in and week out.
4. You’ve tried a hybrid approach and it’s not cutting it.
As your company expands, especially into multiple states or countries, you may have opted for a hybrid approach to payroll management: outsourcing some processes while maintaining others in-house. By engaging new providers in such a piecemeal structure, you risk losing your sense of accountability and control over payroll – and there’s an even greater burden on your in-house team to keep everything coordinated. Outsourcing may be your smartest long-term investment.
Ready to Start Outsourcing Your Payroll? Learn How KeyHR can Help!
KeyHR’s Payroll Services offer services and pricing competitive with any local or national vendor you may be considering. We can help you avoid costly mistakes, penalties, noncompliance, and last but not least, dissatisfied employees or spikes in turnovers due to payroll shortfalls. Key also partners with preferred provider companies for employee leasing, benefits, insurance, and other HR management needs. If you’re feeling the pain of payroll headaches at your company, contact us today and let us help.
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- On October 21, 2021
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