After reading that title you are probably thinking “why should I pay somebody to do something I can do myself”. If you are thinking that I would encourage you to consider all the aspects of life that also get outsourced. For example, although it would be easily possible for somebody to make their own bed-frame from scratch nobody does and why is that? People don’t because it’s easier and more cost effective to get a better quality bed from IKEA for example. I put it to you that the principle of outsourcing your payroll is no different to shopping at a Swedish furniture supplier. Below is a list of reasons that it is cost effective to outsource payroll.
More Effective Use of Time
In both business and life: time is an extremely valuable resource, so why waste it doing a simple yet time-consuming task. Outsourcing saves on time spent by either you or your employees allowing them to do what you hired to do or allowing you to do something that only you are in a position to do. Whatever the case, outsourcing will free up time that can be spent on making profits and expanding your business.
To effectively do your payroll requires training, technology, software (that needs to regularly updated), printing equipment and as previously mentioned the paying of staff. Outsourcing your payroll means you don’t have to worry about any of that, saving you further time, money and space.
No Legal Considerations
As well as being a detriment to time, money and space, performing your own payroll can expose you t o many unpredictable threats. Such as, frequent changes in legislation surrounding payroll – meaning that legal retaliation is a constant threat to your company.
Maintenance of Moral and Work Relations
Receiving a payment that is late or underestimated can be a serious detriment to workforce moral, especially if it is a regular occurrence. In a society where people purchase everything with direct debit some just can’t afford to receive their wages a month late. A low morale workforce can lead to lower quality employee performance, which in turn often leads to loss of customer satisfaction and even loss of profit. Low morale can even result in the loss of staff, incurring further costs through the retraining of staff. Outsourcing your payroll puts your wages in the hands of experts who don’t make these kind of potentially devastating mistakes.
Hopefully I have now convinced you that although you can do your own payroll it is in-fact as time and cost effective as designing and building your own furniture.
Written by Jacob Catt on behalf of tracepayroll – specialist providers of payroll outsourcing services with more than 30 years experience in the field.