6 Reasons Why You Should Outsource Your Payroll
Whether you are running a business or leading a team it seems there are more challenges than ever to ensure staff time and resources are being spent on core functions that drive business growth and not back-end administration.
This is why approximately 47% of companies choose to outsource their payroll. Payroll is a critical business function; however, it can also be also time-consuming, complex and largely administrative in nature. You add to this the fact that complexities and risk associated with Payroll compliance increase as your business expands. This is especially true across the Asia Pacific region where there are constant nuances in Payroll Legislation. Yet employees are more mobile than ever and demand the same experience irrespective of where they are in the world.
In this article, we explore why Payroll Outsourcing can be an effective solution for businesses by taking you through the 6 key benefits to outsourcing payroll.
01 Saves HR teams time to focus on business growth
Payroll is a largely administrative function that requires a high level of attention to detail. In short, it is a time-consuming business requirement, regardless of your company be it 50 employees or 5,000, processing payroll is a constant that can quickly drain HR resources.
When you outsource your payroll processing you allow your HR teams to focus on core business activities that drive performance and growth, fundamentally saving the business time.
In addition to this, a professional payroll outsourcing provider will have had a variety of experience processing payroll for companies of all shapes and sizes. This is a direct benefit to your business because it means that irrespective of how you grow or where you grow to, your pay runs will never be in jeopardy and you won’t waste time hiring and training a new payroll administrator each time you experience growth.
02 Unparallel reporting capabilities and expert advice at your fingertips
There is no one size fits all solution for running payroll. Each business has a unique set of requirements that a professional payroll outsourcing firm will not only cater to but recommend best practices processes and systems. Multi-country payroll processing, especially across Asia Pacific can be a daunting task to manage in-house. However, a payroll outsourcing firm will have a multitude of experience across a wide range of industries and will conduct multi-country payroll processing daily, meaning your business will benefit from their years of experience.
Comprehensive payroll reporting can make a real difference to an organisation, from visibility over annual leave trends for resource planning or assessing overtime reports, payroll reporting can play an important role in business planning. A good payroll outsourcing provider will not only have the platform in place that caters to comprehensive reporting they will also provide regular reporting and insights for your business.
By choosing your HRMS wisely, you guarantee peace of mind for your HR department and free-up resources to focus on other functions such as improving processes and securing a strong talent pipeline. In the words of Elbert Hubbard, let your extraordinary people do extraordinary work and leave the machine to do the ordinary work.
03 Information security & confidentiality safeguards
Personal data protection has never been more important than when in the context of processing payroll. The personal data stored for payroll is highly sensitive and requires a significant investment, not just in infrastructure but also in staff training to ensure companies remain in compliance with local personal data protection laws.
By engaging a credible payroll outsourcing company, the investment and risk associated with compliance failure by your internal teams is mitigated. The payroll outsourcing company will have extensive systems and best practice processes in place to ensure there is no breach.
04 Ensure compliance with changing Government regulations and standards
Running payroll, especially across Asia, brings with it a multitude of local country statutory regulations and standards that need to be met. This goes beyond accurate computations of gross to net salary and moves into the specific statutory deductions required in the country you’re operating.
The intricacies of these reporting standards need to be timely and mistake-free to avoid potential time-consuming audits and penalties. A professional payroll outsourcing company will ensure you always remain a compliant employer.
05 Cost savings
Wherever there is time savings, there is typically cost savings and outsourcing payroll is no exception. It is a common misconception that payroll outsourcing is more expensive than having an in-house team. The truth is, it really depends on your business needs, however, as a general rule you can expect payroll outsourcing to be a cost-efficient solution if you have standard pay runs.
If you require a more complex solution, payroll outsourcing could still be the answer. By outsourcing your payroll, you have a dedicated team at your fingertips who has an array of experience across a diverse range of business needs and challenges. You do not need to worry about hiring and training staff to manage your complex needs.
06 Access to complementary services
A key benefit of outsourcing is the access to a team of highly trained professionals. All of which are dedicated to answering any questions you have and pre-empting and providing proactive solutions to any potential issues that may arise.
In addition to this, many payroll outsourcing companies provide complementary services. BoardRoom is a good example of one such company their team across Hong Kong, China, Singapore, Malaysia and Australia offering services such as Corporate Secretarial, Accounting and Taxation.
This is a benefit to your business as you can tap into a team of experts that cater to all your back-end business requirements.
Looking For A Trusted Payroll Partner?
At Boardroom, we are experts in helping companies, from corporations to fast-growing SMEs, with their payroll, allowing them to focus on what matters – growth and profitability.
From local payroll services handling to managing substantial payroll obligations for bigger companies spread across Asia-Pacific, we help companies comply with local statutory regulations while ensuring their most valuable asset, the employees, are paid on time.
Contact us today and empower your organisation with greater freedom through our payroll solutions.
Or you can also learn more about our payroll solutions here.
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