Benefits

Benefits of Payroll Outsourcing

Multiple organizations now tend to operate on a slim budget, which makes outsourced Payroll and HR a feasible option.

If you had two options to spend INR 4,00,000 per annum on an employee or choosing an outsourced accounting service at INR 2,00,000, what would you do?

The answer to the question is clear. You would think about cutting costs and saving extra money on Payroll and HR activities.

Coronavirus pandemic has already hit companies harder than anticipated. In the past few months, we have observed multiple SMEs break apart. In a condition like this, it is far more feasible to outsource Payroll & HR for SMEs.

You get every benefit of an in-house employee, sometimes even more. This is because you can save your time, improve processes, streamline tasks, and gain access to expert employees.

To help you understand the deeper benefit of outsourced Payroll & HR services, we have created a small guide. Read on to know the advantages of outsourcing HR & Payroll services.

Advantages of Outsourcing Payroll & HR Services

Hiring an in-house HR & Payroll Executive means keeping a tab on the following:

´Office space

´Time spent by the employee in the office

´Benefits offered to the employee

´Training provided to the employee

Outsourced Payroll & HR services mean keeping a tab on the following:

´1. Saves Time and Money

Every small and medium organization spends approximately 2-5% of their revenue in training, hiring, and managing employees. While this seems like a minimal cost, multiply it with the amount you would be spending for the entire HR & Payroll team for multiple years.

When you utilize outsourced Payroll & HR services, you can eliminate this cost. Everything from training to employee payroll is handled by the outsourcing provider.

Other than this, you can save a lot on the financial mistakes that are common in every organization. This mistake is hiring the wrong employee for a job role. When that happens, you need to repair the mistake by again hiring and training a new employee.

You can reduce this hassle with outsourced Payroll & HR.

´2. Improves Operational Efficiency

With Payroll & HR activities clouding your mind every time, it is hard to focus on any other operational activity of the organization. You can avoid that by outsourcing Payroll & HR and reducing your tasks at hand. This will give you more time to spend on operationally important activities of the business. This includes daily activities that are critical to the organization such as managing customers and lead generation.

3. Availability of Expert Resources

If a small or medium enterprise is handling Payroll & HR activities in-house, it is highly likely that they are no expert in this task. Most of the time, the owner of the business keeps a check on these activities, and other times, an intern is hired to look after the process.

All these scenarios are not feasible and efficient in the long term. You can make mistakes and run into statutory penalties.

When using outsourced Payroll & HR services, you can eliminate the risk and interact with expert professionals. These expert professionals are hired and managed by the provider, so that reduces your hassle. In fact, in outsourced Payroll & HR , you practically have access to a skilled team, which you may not be able to hire in-house at the starting of the business.

´4. Improved Processes

One of the amazing benefits of outsourced accounting services is the opportunity to improve and upgrade internal Payroll & HR processes and procedures. With outsourcing providers, you can utilize best practices, reduce time to close books, and maintain an efficient Payroll & HR lifecycle.

You can create better benchmarks and meet the regulatory needs of your organization. Here, you would even have the support of the latest tech and updated software, which would consistently improve your working, cash flows, and service level agreements.

Simply put, your team would be positioned towards growth and goal achievement.

5. Reduced Tech Hassles

You need to purchase and manage tech and hardware. Everything is taken care of by the provider. You only need your office computers to access the files and accounting data. This means that managing and regularly upgrading tech parts is not your headache.

´6. Reduced Risk

There’s no doubt in the fact that Payroll & HR contain the risk of theft and penalties.

´Let’s understand both:

Multiple times employee theft reduces the cash flow of the organization and puts the hard work of every employee to waste. This theft happens even when strong checks are placed on employees and regular audits are achieved.

Another way is mistakes that happen regularly with inexperienced employees. When these mistakes happen, compliance penalties follow. This means that not only you lose money in penalties and fines but also you put your organization at reputational risk.

An outsourcing provider can mitigate these risks with strong internal policies, robust audits, and expert handling of accounting. This removes the chances of theft as well as mistakes in the system.

´7. Automation

With your outsourced accounting partner, you can actually reduce carbon footprints. This is possible when you are able to automate bookkeeping and accounting tasks that consume a lot of paper and computer units.

Outsourcing partners reduce this by eliminating the need for paperwork and moving to the cloud for better anytime, anywhere execution.

And think about it, wouldn’t it be simpler to access your accounting data files from anytime anywhere without having to visit the office?

We all want that and outsourced accounting provides that.

´8. Efficient Scaling

Think of scaling in the following manner:

You currently have 5 employees and 10 clients. But, in 6 months, you are expected to scale to 15 employees and 20 clients. Then, how would you manage to scale your accounting and bookkeeping?

In-house, you may just drag your activities and push your employees. But, in outsourcing, you can simply arrange a meeting with the outsourcing partner and adjust your requirements with a new package. You can even scale and descale this package based on the seasonal demands of the business.

9. Peace of Mind

Let’s be honest, more than anything, you have peace of mind. This is because you are not worried about managing employees, handling tasks, compliance, audits, and financial health of the organization.

You have financial reports in front of you at all times, which empowers better decision making and enhances the success rate of these decisions. You have skilled professionals who you can trust with your accounts and books.

All this gives you peace of mind.

Are you ready to make the leap and move to outsourced Payroll & HR ? then just write us team@paytiemp.com for more assistance.

Coronavirus pandemic has hampered the functioning of every department of the organizations in some of the other manner. The department which is constantly struggling and will continue to struggle in the near future is the Payroll & HR unit. The least you can do is improvise your HR department for enhanced workflows and dedicated activities that focus on damage control.