Posted: Tuesday 27 June 2017. Author: Andy Green.
We’re being asked to measure performance on more metrics than ever thanks to analytics and better MI. But did you know that you can even benchmark your payroll? The CIPP’s benchmarking survey is designed to measure four key strands of providing a payroll service:
If you’re starting to consider outsourcing, these four points above provide a useful guide to the efficiency of your current service or in-house process. Add to this – the presence of KPIs and service improvement commitments - if you’re already using a payroll provider
At the 2017 HRD Summit in Birmingham we asked participants about what their businesses are prepared to outsource. 49% told us they outsource payroll and just 16% outsource HR. When we asked the same group ‘what’s keeping you awake at night?’ only 12% of worries relate to processes such as payroll which is great news – so long as there’s some correlation between outsourcing payroll and a lack of stress!
If you’ve been reluctant to outsource payroll in the past, these are the areas where, in my experience, I believe an outsourced service adds most value: in areas where in-house teams are often just to stretched, and where offshore providers can be lacking in specific expertise:
A payroll provider can also help with the auto-enrolment and auto-re-enrolment process. According to Employee Benefits, “some lower-paid or part-time staff may not be eligible, but those on variable pay can slip in and out of eligibility. One of the main benefits of payroll outsourcing is the peace of mind it brings for an employer in knowing that its payroll is being calculated and processed correctly.”
Managing legislative matters that impact payroll in-house also “requires ongoing investment in training to keep payroll staff up to date with legislative changes, while regular changes to legislation put additional pressure on the payroll team” says Colin Jackson of CIPP.
Nat Davison, partner at payroll specialist and foreign exchange broker writing for Employee Benefits says: “If an employer is moving into a territory, particularly if it is not a large player, there are a host of things it is not going to be aware of, for example, how to make compliant local tax payments.”
In an age when we’re all being asked to work smarter and more efficiently I believe the outsourcing payroll has the potential to be a huge time and money saver as well as reducing stress for HR and the broader employee population.
According to Alison Dodd of Moorepay, “Outsourcing can be considerably cheaper”. “Consider the costs of employee salaries and benefits, national insurance contributions, the price of payroll software and the maintenance fees” she says. According to Dodd, “Hiring internally could cost £15,000, while outsourcing the same hire can cost as little as £800”.
More and more businesses, both large and small, need support navigating legislation, dealing with the complexities of a global workforce and reducing administration time spent on processes. Average small business owners will spend between seven and 25 per cent of their working hours handling employee paperwork according to Real Business - one of our objectives is to reduce this significantly.
You can register your interest for your chance to take part in the CIPP’s benchmarking survey later this year. Andy Green’s post on the balancing act – build or buy also has some useful points for selection a potential payroll partner.
To read more about payroll services for SMEs, expatriates and larger businesses click here.
If you’re starting to consider outsourcing, these four points above provide a useful guide to the efficiency of your current service or in-house process. Add to this – the presence of KPIs and service improvement commitments - if you’re already using a payroll provider. Read more here
My experience in all aspects of the employer, employee and business lifecycle, has developed my desire to improve the end customer and administration experience. Employees, and indeed line mangers, should be treated as customers; by leveraging technologies and digital initiatives such as mobile or tablet transactions we can lead organisations from manual or paper based processes and communications to embrace online and system integration; improving efficiency, productivity, engagement and education, whilst reducing cost.
What inspires me most is working with clients in supporting their unique vision and goals by developing innovative solutions that exceed expectations, drive efficiency and growth.