Among the many challenges of 2020, making adjustments that will optimize efficiency and productivity in the face of pandemic operating measures has been the most significant.
To face this challenge, many forward-thinking companies have turned to outsourcing to satisfy a wide assortment of functions.
The concept of outsourcing takes advantage of the skills and expertise of external professionals to address the internal needs of company function. This could be IT, Customer support or even payroll management.
Just about any functional role your team may require is available in the outsourcing market. Let’s examine some of the most significant benefits of outsourcing payroll management to an external professional management solution. Having this tedious task handled by a professional outsourcing service will provide your HR department with a greater capacity to meet the challenges of an unpredictable job market. Furthermore, because your company has most likely already begun outsourcing various functions of your business operations to external professionals such as Payroll Index, the transition can be easily made.
Here are a few important things to keep in mind when you are considering outsourcing payroll for your company.
Reducing Operational Costs
Due to the pressures of the pandemic most companies have already had to rethink their approach to workforce locations and outsourcing payroll could be the next logical step in your company’s plan to reduce operational costs. Payroll outsourcing addresses the time-consuming tasks of tracking, adjusting and reconciling payroll issues and paying attention to the finer details of tax administration.
The initial advantage to this will be a great relief to your HR department to apply the workforce for achieving primary company goals and allow this supplementary task to be handled by external experts.
Focus On Core Business Functions
HR departments were the most affected by the challenges that the pandemic placed on recruitment and retainment plans. Outsourcing Payroll frees up needed resources to allow these strained HR departments breathing room to focus on their core functions.
For example:
Engaging employees
Improving retention — especially in industries where talented and experienced workforce is in high demand.
Improved job satisfaction — essential to attracting top talent
Applicant tracking
Simplified onboarding
Training
Performance reporting and employee grooming
An HR team becomes significantly more strategic when they do not have to focus on the peripheral tasks of an efficient payroll management team. This allows them to specialize their skills at finding the precision talent needed to fill roles directly related to company goals. This greatly enhances the efficiency of the company, by relieving the skills gaps caused by an ever-expanding company.
Technology Integration
By choosing a high-grade and very professional payroll company, your corporation will suddenly have access to better tools and technology for this task. Complete integration in payroll outsourcing means that your company will benefit from cost-saving platforms that will allow for a wide range of functions, your company may not have had before.
Payroll and taxes
Workforce reporting analytics
Benefits administration
Employee records and database
Time and attendance
Employee performance tracking
As your HR department improves their capacity to provide your company with improved services, all other aspects of company function improve as well. Your entire operations will benefit from the improved scheduling, benefits, training schedule, payroll disputes, onboarding and other primary HR functions.
Workforce Planning
Workforce planning tends to be one of the first tasks sidelined in organizations where the HR departments are consumed with the minutiae of running a company. Payroll outsourcing improves your company’s capacity to operate but especially improves their team tracking skills.
Your team will then be free to engage in improved
Sourcing top talent
Phasing out retirees and poor performers
Arranging for internal transfers
Being more effective in talent management
Simplified Certified Payroll
If your company is handling federally-funded projects then you are probably fully aware of how time-consuming the task of certified payroll can be. Payroll management provides attention to detail in this important process.
Competitive Edge For Recruitment
When it comes to taking on heavy competition, smaller businesses need to streamline their efforts. An HR team empowered with the benefits of outsourcing payroll management. The results of improved HR management, workforce planning, benefits, training, and more will be very attractive talent. People today want to work for companies that have that stability and commitment as this is a good sign of a quality team.
While it may seem like a costly project, in the long run it is a good investment for the amount of benefits provided. As you and your team head out into the future, remember to rely on the power of outsourcing to meet the challenges that will come your way.
Read more:
A Guide to Successful Payroll Outsourcing for SMEs
