Why managed payroll services are supporting operational efficiency?

As organisations increasingly seek ways to streamline their businesses and maximise operational efficiency, outsourcing non-core functions such as payroll is becoming the solution of choice. YouGov research has revealed that 70% of UK based B2B decision makers have outsourced key services to third parties, citing efficiencies and lower staffing costs as the main reasons for their decision. The most frequently outsourced function is IT, followed by Payroll, with 28% of UK businesses currently using managed payroll services. With so many businesses of all sizes considering a managed payroll solution, we take a closer look at the benefits to be gained.

Skill Sourcing

Payroll processing requires specialist training and for smaller businesses who do not have a full-time payroll requirement, it can be difficult finding someone with the right skills. It is therefore no surprise that 34% of UK business owners outsource payroll processing for this very reason, opting to tap into the expertise of a specialist service provider to cover all, or part of their payroll activities.

Time Saving

For businesses who have not digitised their HR systems, payroll can largely be an administrative task which scales as businesses grow. As a function that is not directly tied into any profit centre, time preparing reports, processing time sheets and ensuring compliance diverts people from other activities where they could add value. When Payroll is outsourced, the burden of administration is eased and businesses benefit from having a team of experts handling any

Achieving Compliance

Navigating tax regulations and employment legislation can be very complex; a variety of full time, part time, casual and zero hours employment contracts create plenty of opportunities for a business to unwittingly place themselves at risk of prosecution due to non-compliance. Managed payroll services deploy experts to guide businesses through all areas of taxation, guaranteeing compliance against changing legislation.

Business Continuity

Despite being generally considered as a non-core function, payroll processing sits in the top 10 most critical business processes. Without it, staff are not paid on time, engagement and morale hit all-time lows and operational efficiency is affected. It is therefore vital to protect all payroll activities from interruption – whether that may be through illness, holiday, unexpected absence or attrition. The flexibility provided by managed payroll services ensures short-or-long-term cover whenever an organisation needs it, teams can be instantly deployed and are unaffected by absence due to the large pool of experts available and resilient software at their disposal.

Cost Efficiencies

For many businesses it is more cost effective to outsource payroll. Staffing costs and the time spent on administration is instantly reduced when it is outsourced and business leaders gain access to reporting dashboards improving their visibility of all costs associated with their workforce.

Improved Accuracy

Manual, legacy or disjointed payroll systems are subject to inaccuracies and human error which will demotivate a workforce over time. Outsourcing payroll to a supplier such as Access People means your payroll will be processed using the very latest software, automating activities and removing opportunities for error.

The evolution of technology and software is occurring at such a fast rate, often the most effective way to future-proof functions such as payroll is to outsource it. Not only do providers such as Access People operate on a cost-effective ‘per-user’ based model that levels the playing field between small, medium and large businesses, they support operational efficiency in a seamless experience, supporting businesses with their long-and-short-term payroll needs.

Would you like to know more and find out how Access People can help you? Please contact me at matt.newton@theaccessgroup.com or call me on 07796 938792