1. Home>
  2. Resources>
  3. Payroll Outsourcing>

Debunking the myths of payroll outsourcing

-Reading time: 5 Minutes
Loosening the strings on HR and Payroll

Misconceptions around payroll outsourcing could be holding back your business. Our clients find that taking the step to outsource pays them back dividends, driving productivity and giving payroll teams the opportunity to focus on strategic rather than tactical initiatives. We understand that payroll outsourcing can be a daunting topic, so we have debunked some of the most common myths to help you make informed choices about your payroll strategy.

    Myth 1: Payroll outsourcing is hard to justify financially

    Reality: It’s an investment and can be financially justified to stakeholders. When you consider the direct costs a reliable outsourced payroll provider can absorb such as infrastructure and data security, plus the indirect costs like compliance and Payroll/HR expertise, you can reduce your Total Cost of Ownership by at least 20%. Outsourced payroll solutions are designed to save time, which also saves money. A solution from an expert supplier will accurately inform financial decision-making across the business thanks to real-time calculations and powerful analytics.

      Myth 2: Payroll outsourcing creates more work

      Reality: Deciding to outsource will in fact save you time and enable you to focus on added-value activities. More administrative or manual procedures become obsolete or handled effortlessly by the payroll provider, such as writing reports, troubleshooting errors, painstaking data entry or getting to grips with legislative changes. Specific time-savers from a dependable provider include a ‘self-service’ function for employees seeking information about their salary calculations. Features like interactive payslips can reduce your payroll queries by up to 75%.

        Myth 3: Outsourcing your payroll creates more accuracy checks

        Reality: We understand this is a major concern, as the professionals we speak to feel strongly that payroll teams should be spending less time checking accuracy of information as part of their remit. The good news is that this can be achieved by choosing a supplier offering in-depth HR & Payroll guidance & best practice supported with technology capabilities. You know you’re in good hands when your payroll supplier ensures you stay on top of ever-changing legislation and HMRC deadlines. Passion in payroll and making sure accuracy is never compromised should be on top of your provider’s agenda.

          Myth 4: Payroll outsourcing poses a security risk

          Reality: Having an outsourced payroll solution can actually enhance security. The costs and resources that are involved are sometimes difficult for organisations to manage internally to ensure absolute security and accuracy. At the heart of the solution of a reliable provider is the confidentiality, storage and protection of customer data in compliance with legislation such as GDPR. What makes a quality payroll provider stand out from others? Look for the ISO27001 certification, an international standard and a key indicator that the payroll provider takes security of information and processing your data seriously.

            Myth 5: Outsourcing your payroll will replace the payroll team

            Reality: This is understandably a worry but there is no direct correlation in our opinion. Outsourcing your payroll can in fact empower payroll staff, relieving them from manual, repetitive or frustrating tasks like checking accuracy and answering employee queries. 54% of payroll professionals we surveyed rank ‘identifying improvements to payroll’ in their top 3 activities they should be doing, and an outsourced service will facilitate exactly this, giving your Payroll & HR team a more impactful, strategic role in the business.

              Myth 6: Outsourced payroll solutions are rigid and take away control

              Reality: A credible supplier will take the time to understand the needs of your organisation and people in order to offer a robust solution that meets (or exceeds) them, incorporating user-friendly solutions to challenges like complex legislation and international pay. A proactive payroll supplier should offer enhanced control over the payroll functionality, analytics and insight, with 24/7 secure access to the data you need, when you need it. It should also be scalable to cater for your future workforce.

                Book a Payroll Efficiency Review with us

                We’re here to help you with your payroll, so if you’re struggling please get it touch. We’re offering a free virtual payroll efficiency review to help you get the most out of your payroll.

                  Book a free review

                  Related articles

                  Payroll Outsourcing: Work smarter, not harder:

                  Payroll outsourcing | Work smarter, not harder

                  Outsourcing payroll is very much on the rise. It is now in the top 3 most desired outsourcing projects with 4 in every 10 HR leaders saying they want to introduce this in their own organisation. These key trends were taken from our latest Future of Work & People report when we researched the challenges and priorities of almost 3,000 senior HR leaders across Europe.

                  man in pak op een bank

                  The complete guide to outsourcing your payroll in 2021 [Free 121 business case support]

                  The concept of outsourcing your payroll is highly appealing. Businesses effectively gain more expertise, experience and resources, and it costs them less.

                  vrouw die werkt

                  5 implementation steps to ensure your outsourced payroll transition goes smoothly

                  The prospect of handing over responsibility for your payroll to an outsourced partner can be daunting enough, without having to worry about something going wrong during the transition. That’s why implementation has to go smoothly.