Companies of all industries, sizes, types, and locations can benefit from a complete payroll outsourcing service. However, they need to consider the quality of the service provided and the technology used to perform the functions.
Payroll outsourcing is especially useful if your company:
- Does not have an in-house finance and administration team.
- Needs the finance and administration team to focus on strategic tasks outside of payroll.
- Operates internationally, but does not have payroll management experts in each country.
- Requires continuity of payroll management and lacks a robust data recovery system.
- Is concerned about compliance with current or future regulations.
WHILE THESE REASONS ARE VALID, EACH COMPANY IS DIFFERENT. THEREFORE, THEY MUST PERFORM A THOROUGH ANALYSIS OF THEIR SITUATION TO CHOOSE THE RIGHT PROVIDER. THIS ANALYSIS REQUIRES CONSIDERATION OF SPECIFIC FACTORS INCLUDING:
- Workforce size and number of people preforming payroll functions internally.
- Impact on the employees who were performing the company’s payroll functions — will they be transferred to other areas of the company, or will they have to be laid off?
- Whether the company lacks payroll knowledge and expertise.
- Whether the strategic decision to transform the costs associated with payroll functions into a variable cost proportional to the size of the workforce makes sense for the company