“Outsourcing is something that only large companies can afford to do.” Without doubt, this is a mistaken view held by many small and medium-sized companies, for nothing could be further from the truth. Outsourcing payroll, that is to say, externalising the payroll service by sub-contracting a specialist company can help your company improve in many respects.
The fact is that, for many small and medium-sized companies, managing the payroll can be a real headache that requires considerable time. Among other things, processing the payroll involves calculating workers’ salaries, withholding taxes, updating holiday and sickness pay… a genuine dilemma if you are not an expert in this field. Hence the importance of sub-contracting a company that offers payroll services.
Advantages of outsourcing payroll
Time is precious. Therefore, when a company has been sub-contracted to manage payroll, the human resources department can pursue projects that generate added value for the recipient company, such as improve synergies between workers, undertake staff development, invest in policies to balance work and family life, evaluate workers and draw up personalised career plans…
Meanwhile, the company contracted to manage the payroll will carry out its task efficiently, in less time and without delay.
Save resources and costs
Outsourcing payroll leads to a saving of costs, because it involves specialists without increasing the payroll itself. The fact is, payroll management represents a cost for the company in terms of the staff assigned to perform these functions. When a payroll company is sub-contracted, fixed costs become variable costs.
Sub-contracting a payroll service is not just about “delegating” a task that requires considerable time. It also helps the company to focus on its core business without neglecting its internal requirements. In other words, more time can be assigned to activities that generate value and profit for the company, achieving a competitive advantage instead of devoting time and effort to peripheral operations.
Take advantage of the latest technology
We live in a technological world. In fact, although the new generations are now digital natives and we are well and truly in the digital age, in some aspects companies are not up to date with technology.
Sub-contracting a payroll company brings a guarantee that your company will be up to date with respect to technology and cybernetic security, and that the platforms and services used are secure, accessible and disaster-proof. Furthermore, an analysis is made of “all the strategies and digital processes that enable the company to operate smoothly,” Miquel Cano, IT Manager at Rosclar, explains.
Exponential return on investment (ROI) through outsourcing
Thus the use of technology made by payroll companies constitutes a key factor in a company’s business strategy. Through secure online portals, cloud and SaaS platforms and the optimisation of time, what used to represent many hours of internal work and an investment cost is now much more affordable and accessible.
An outsourcing company helps to cut down on expenses, because the recipient company avoids the need to buy the software required and to learn to use and maintain it, in addition to maintaining the hardware which is essential for it to function.
Keep up to date with changes in the regulations
Managing the payroll means staying abreast of the regulations. And these change. Therefore, salary payment processes are dynamic, given that they must adapt to regulatory, tax and legislative changes. Consequently, it is important to rely on a specialist who can remain up to date and who has the knowledge to analyse what each modification to employment legislation entails. An example here would be drawing up and implementing the Equality Plan, which is now compulsory for companies with 50 or more workers.
The decision to outsource payroll brings the peace of mind of knowing that you have a team of advisors with the know-how needed to correctly and swiftly understand and implement any modifications.
Improve compliance and reports
Due to the need to be on top of laws, tax regulations, presentation deadlines, forms and a long list of requirements, payroll management has become a full-time job. Outsourcing all this work to a specialist payroll company means no longer having to worry about these matters, since you are leaving them in the hands of experts.
An outsourcing company has specialists who work exclusively with payroll, so they know all its ins and outs. Thanks to their ongoing training, they are fully up to date with all legal aspects and any changes in employment and tax legislation.
These 8 reasons highlight some of the advantages of outsourcing payroll noted by companies that have requested the assistance of Rosclar.