Early Indicators That It's Time to Part With Your Payroll Provider
Have you wondered if it's time to switch payroll providers or stop in-house processing? Amongst the most recommended functions to outsource, payroll outsourcing is becoming more commonplace. It is cost-effective, scalable, and ensures resourcing continuity. This article describes the early warning signals that it is time to switch and explains the options available.
Even though it may seem daunting, there comes a time when it is best to part ways. When the inefficiencies in the current process are overwhelming, costly and add to the workload of those involved. Here are my top 5 indicators that it is time to part ways.
Future-proofing
Scalability and business growth
Disruptions to your business operations
Poor Service
Frequent payroll errors
Paying staff late
SLAs not being met
Lengthy or increased processing times
Misaligned Expectations
Misunderstanding of your payroll adjustments
Inflexibility
Support not available
Increase in prices and hidden charges
User experience
HR and payroll software not integrated
Employee Benefits admin not available
Lack of reports and self service options
Compliance
Not keeping up with statutory pay entitlements
Late submissions and fines due to issues with pensions and HMRC
Adequate GDPR measure
A poorly performing payroll function that impacts employees will affect morale, raise doubts about the company’s financial stability and ultimately affect employee retention. Since employees are regarded as an organisation's most valuable asset, sustaining accuracy is essential to keep your workforce happy and productive. It is equally important to avoid any penalties incurred by failure to fulfil statutory and legal requirements. Engaging a trustworthy payroll provider makes managing payroll simple.
So what are the options?
There are two primary choices: in-house processing or payroll outsourcing but also a not so widely recognised solution known as co-sourcing. These options are explained in detail.
In-House
With in-house processing, employees who usually sit in Finance or HR handle the payroll processing. This approach may seem to more flexible giving you the advantage of complete control over the process ensuring that all data is accurate and up-to-date, and the ability to make changes quickly when needed. However, managing payroll internally can be time-consuming and expensive. It requires trained payroll employees and appropriate software that is regularly updated with changes in tax laws and regulations. These dependencies can lead to a higher risk of errors in the process which could lead to costly fines and penalties. It's also important to note that payroll processing is not a core competency of most businesses, so outsourcing it to experts can free up valuable resources for other strategic initiatives.
Outsourced
Outsourced or Fully managed Payroll providers run the full payroll process meaning your team only provide monthly or weekly variances and check outputs. This reduces the cost associated with employing a dedicated payroll resource and the burden of paying employees in the event of unplanned absence. A team of experts keep up to date on all the latest regulations and take care of all your payroll requirements from administrative tasks, employee benefits to tax filing. Letting a third-party handle your payroll, will free up time to focus on other important aspects of your business and reduce the risk of errors or non-compliance.
One of the biggest concerns of outsourcing is the loss of control over the payroll process. To successfully outsource, you need to find a provider who understands your payroll needs and preferences enabling them to manage your payroll accurately and efficiently. Thanks to technological advancement, the days when outsourcing was considered a costly choice for smaller businesses are in the past.
Co-sourced
Co-sourcing involves partnering with an external service provider to handle some or all aspects of the payroll process thus adding a much-needed layer of expertise and continuity. This reduces the burden on internal employees freeing their time for other business priorities. Furthermore, the business retains control over key parts of the payroll process while accessing specialist expertise and technology that may not be available in-house. The only drawback would come from appointing an unsuited partner and risking communication challenges or delays in processing payroll.
If this article has provided any food for thought, then we would love to understand your current difficulties. Efficient Ops payroll offering is a fully comprehensive solution. With a client-centred approach, our team of experts delivers tailor-made payroll solutions to meet your unique business needs. Our managed payroll service will include the implementation of the software, meet all your payroll needs, ensure compliance with local laws and regulations, and provide accurate and timely pay for your employees. Our payroll solution flexes around the needs of your business, whether you are looking for a fully managed payroll solution or co-souring, our team of experts are at hand to guide you.
Mina's Bio
Drawing from my years of leading domestic and international payroll, obtaining solutions for payroll outsourcing, and now providing flexible payroll, pensions and benefits services, I have led teams for businesses of varying sizes and sectors. I’ve successfully implemented complex payroll systems, navigated audits, and improved processes to increase efficiency and accuracy. My experience in payroll software, regulations and employment law ensures compliance in all operations.
I know that the thought of switching providers can seem like a bigger headache than tolerating the mediocre service offered by your current provider.
If this is the case, I would love to have a conversation to ease your mind on how seamless this can be. As a finance professional working in industry, I successfully migrated payroll providers multiple times so am well versed in how to mitigate any stumbling blocks.
Written by Mina Thakore
