Outsourcing your payroll provides you with benefits you might not have considered. As more and more businesses are looking for increased flexibility and opportunities to save costs without compromising on internal efficiency, ‘Outsourcing’ is making a comeback as an increasingly popular buzzword among decision-makers.
Outsourcing is the business practice of hiring an external party to perform services and create goods that could traditionally be performed in-house. Popularised as a business strategy by Kodak in 1989, outsourcing started to form part of the holistic business economics landscape throughout the 1990’s.
This means that outsourcing as a business practice has been around for quite some time, so you might ask: “Why is it making a comeback?” – Well, glad you asked. To answer this, let’s look at some of the benefits of outsourcing from a payroll perspective, and how this helps businesses to overcome some of the massive challenges experienced today.
In 1989, Kodak collaborated with IBM to design, build, and manage a data center on behalf of Kodak.
7 Benefits of outsourcing your payroll:
Access to expert advice and experience
Payroll is a challenging and complex area for most businesses. Outsourcing this function allows you to focus more energy on running and growing your business. With the PaySpace Outsourcing team, you get access to our team of experts who have more than 175 years of combined experience.
Cost-saving
When you outsource your payroll function, you are likely to save money over having that department within your own business. You’ll save on full-time salaries and benefits, and you won’t have to invest in expensive software, hardware, or security and maintenance.
Flexibility
Outsourcing your payroll allows you to free up time and energy so that you can focus on core business areas, while resting assured in the knowledge that your payroll is being taken care of by best-in-class experts.
Mitigate business risk
Employee risk – Having a dedicated person looking after your payroll creates a dependency. If nothing else, 2020 showed us just how abruptly things can change. People fall ill, they resign, and in the most unfortunate cases teams must be reduced to keep the business afloat. PaySpace’s Payroll outsourcing service lets you mitigate this risk and gives you peace of mind that your payroll will run on time, every time.
Legislative/compliance risk – Legislation can be complex and staying up to date with the changes can be challenging – especially for multinational organisations. Our team of experts have relationships with the authorities, allowing us to stay abreast of changes as soon as it’s happening. We are also the software owners, meaning we have a direct commitment to keeping your payroll legislatively compliant.
Save on infrastructure
When you outsource your payroll, there would be no need for you to ensure that you have the necessary equipment, office space or software to run your payroll. You can save on initial capital expenditure, as well as ongoing maintenance costs.
Maintain operational control
Our technology stack, which is hosted on Microsoft Azure, allows you to have full access to your data, a direct line of secure communication, and the peace of mind that your data is always protected. You’ll still have control when outsourcing your payroll; nothing will be finalised, exported, submitted, or paid without your final sign-off.
Access to the latest technology – You do HR while we do Payroll.
Traditionally, when businesses outsourced their payroll they would have to make peace with the fact that they would require separate software to perform the rest of their business functions. PaySpace has been cleverly designed to allow you to continue with all your HR duties while we continue to do your payroll.
As it is a true cloud solution, you can log in to the system at any time and from anywhere in the world, to manage leave, update training, complete performance appraisals, and much more. Allowing your Payroll and HR operations to run from the same platform increases data integrity, reporting accuracy and efficiency throughout the business.
Outsourcing your payroll adds to your bottom line. It is a potential solution to many of the major challenges that businesses are facing in the complex world we find ourselves in. Covid-19 and its ripple effect forced us to reassess and change how we do things, on both a personal level and a professional level.
The power of outsourcing to relieve economic pressure is causing the practice to rapidly regain the popularity it saw in the late 00’s. It is a tried and tested strategy for successful businesses to fast-track their growth, so its comeback comes as no surprise. Another fantastic perk of our outsourcing deal? We are POPIA and GDPR compliant, meaning your data is protected and all your communications are secure with us.
When you outsource, you can pay for exactly what you need. If you haven’t tried outsourcing yet, get in touch. You’ll be amazed by what you save and how much more efficient and profitable your company will be.
