14 September 2020 - Reading time: 2 Minutes
The impact of the global coronavirus pandemic has forced finance leaders to do the impossible; maintain stability in a chaotic environment.
Forward-thinking CFOs are considering every area of the business, from eliminating the yearly budget in favour of something more agile, to driving growth through new technology and economising departments in a bid to create financial resilience.
Savvy CFOs and finance leaders have spotted an opportunity to maximise ROI by taking a new look at Payroll operations. The Payroll department is often ignored, believed to be purely administrative and not an asset to the business. Yet Payroll, including employee salaries, benefits, compensation and related taxes, is one of the largest overheads in business.
In light of recent events, it’s understandable that finance leaders are looking for ways to make the finance function more efficient and reduce their labour costs. Outsourcing, either part or fully, payroll and HR functions has increased in popularity over the last few years to help manage costs, reduce risk and increase accuracy, all the while contributing to digital transformation. By outsourcing to a trusted provider, finance leaders can maintain tight financial control while reducing costs and streamlining processes across departments.
Outsourcing your payroll operations allows your business to concentrate on core functions and help to control costs. There are many benefits, but here are some of the most attractive for finance leaders.
Payroll outsourcing can reduce your total cost to serve when you partner with a credible supplier, leaving you with more budget to reinvest where it’s needed. Consider your direct costs that are absorbed by the supplier such as IT infrastructure, maintenance and data security, plus the indirect costs including compliance and payroll expertise.
In addition, you won’t need to invest in updating infrastructure or new technology to future proof the function and maintain security because the supplier will take care of that.
New legislation is introduced in the UK all the time, just think of the introduction of furlough legislation and changes to statutory sick pay over the last few months. Ensuring that your payroll is up to date and compliant can be a battlefield and making errors in payroll can lead to costly fines and penalties. Outsourcing to payroll specialists can help you to remain in control of ever-changing employment law, schemes and taxation without the expense of HR/legal consultants and avoid risk of non-compliance through lack of knowledge from your team.
By outsourcing payroll to a reliable provider, you can guarantee that your payroll will be processed in a secure environment. Look for ISO27001 certification that proves compliance with internationally recognised standards of information security and risk and compliance process controls against ISAE3402 and GDPR.
A good outsourced provider will take the time to understand your business processes and map these against KPIs. This allows you to measure their performance against pre-discussed metrics. Typical KPIs you could and should be monitoring include cost-per-employee, payroll performance/accuracy and the cost of absenteeism. By handing most of the payroll function over to the experts, you’ll give payroll teams more time for strategic initiatives, improving productivity and time-to-value.
As we’ve seen in the last few months, operations can be disrupted easily when business continuity plans aren’t set in place. By outsourcing to a reliable partner, you don’t have to reply on one or two individuals in your payroll team. A good supplier will have a robust business continuity plan, so they are never caught out by the unexpected and your payroll will always be processed accurately and on time.
Make sure you’ve covered all grounds before handing over your payroll operations to your outsourced provider by asking these five critical questions.
Read our guide ‘the business case for outsourcing – a guide for FDs and CFOs’
In an increasingly globalised world, there is a vast array of opportunities for businesses to explore. For companies looking to expand their international reach, payroll is one of the biggest consideration factors. Operating in multiple countries has its fair share of challenges: each region has its own local legislative requirements, and complying with these is crucial in maintaining both reputation and revenue.
Here are the five advantages why outsourcing your payroll should be your next move20 January 2021
Managing an international workforce involves various specialist tasks, such as declaring taxes to foreign administrations, monitoring complex labour laws and elaborating attractive reward systems. That’s why most companies outsource these error-prone tasks. Both local and global HR providers can make a big difference, but remember to make well-considered choices. If you’re looking to truly bridge literal and figurative language gaps, a global partner with vast local expertise is your go-to option. Here’s why.17 June 2020
The SD Worx team has been busy! Not only did the team exhibit and present at UNLEASH Paris 2019, but we also launched our brand new Global People Services offering for the mid-sized market across Europe.
Global People Services is the first integrated HR and payroll service focusing on the mid-market in Europe.
What will Brexit mean for the social security rights of UK nationals currently working in other EU states, and of nationals of the remaining 27 member states now in the UK? Will these cross-channel workers benefit, for example, from state pension contributions they made in the UK and vice versa if they return to their countries of origin?22 October 2019
In addition to the launch of Global People Services, we’ll also be running two sessions of our own at this year’s conference – and trust us, they’re too good to miss!21 October 2019
One of the highlights of our UNLEASH calendar is certainly the launch of our one-stop solution for core-HR and payroll’s current and future needs: Global People Services. The offering opens a new category for the mid-size market, with an integrated single source of truth for HR & payroll, rolling out for the 15 countries in Europe.18 October 2019
What happens when you combine payroll and core-HR together with new technologies? The potential insights into business operations become greater and more valuable than ever when informing business decisions across all areas of the business.25 June 2019
September: the month that children dread as they make their return to school after the freedom of the long summer months. But for adults, especially those in the payroll industry, after the quiet summer period September should be a time to be motivated and to adopt that ‘back to school’ thinking. It’s important for teams not to be stagnant. In the ever-developing payroll industry, adaptability is key and so learning shouldn’t stop just because you’ve left school—in payroll and HR it’s all about continuous learning.18 September 2018
The multinational payroll industry is set to be worth 4.8bn by 2021, yet, despite the evident power of payroll, only a third of multinational organizations have a global payroll provider. Instead, they rely on a disparate selection of multiple local providers and therefore have no access to collated data or a clear insight into their employee attrition, engagement, or retention.30 August 2018
Is your HR and payroll team feeling the heat this summer? With the weather heating up, most of us want to get out and enjoy the sun or escape on a holiday. However, with more staff members out of the office, this can mean that the payroll team might be running on reduced numbers. And, typically, less team members results in a higher workload for those in the office. This is where HR and payroll technology can help, giving HR teams a well-deserved summer holiday.3 August 2018
The HR and payroll industry is in a constant state of change. New laws and regulations are introduced around the world, some of which—including GDPR—change the way the whole organization handles its processes and services.26 July 2018
Summer is finally here—and before long it will be over. HR and payroll teams face various challenges over the summer months, from increased staff holiday to keeping track of summer interns and flexible working.16 July 2018
Payroll data. How often do we stop and think about how important it is to a business? Although payroll is often viewed as a back-office function, it is an essential part of any organisation, and is much more than just payslips.5 July 2018
The multinational payroll market is growing at an impressive rate, with the entire payroll services market expected to reach 4.8 billion by 2021. The demand for international payroll services are increasing, due to the heightened need for compliance to local laws and legislations, and a demand for more comprehensive technology. However, even though the payroll market is growing, many organisations still aren’t unlocking the power of payroll.3 July 2018
The results of SD Worx’s recent international survey are in! With 1,500 respondents from nine European markets, the survey reveals that up to 87% of business leaders are now asking for employee data to inform business decisions—HR and payroll data is now being regularly used by business leaders.11 June 2018
Payroll is a vital part of any organisation, whether it’s a local business or a multinational corporation. A simple payroll error can cause a large amount of damage, so getting it right is essential.
30 March 2018
With more and more employees relying on technology and flexible working than ever before, the world is becoming increasingly connected and globalised. However, with this new reliance on global working, what do HR and payroll teams need to consider when implementing payroll for multinational companies?7 March 2018
Technological advancements are helping to turn a vision of digitally accessible, automated payroll processes into reality. Here’s five predictions for the future of payroll:5 December 2017
A recent survey carried out by SD Worx revealed that out of 4,000 European employees surveyed, 44% had been paid late by their employers and 48% of those that had been paid late had also been paid incorrectly. The research exposes several risks for businesses associated with not paying their employees correctly: let’s explore the top three.13 November 2017
Businesses in every industry have been affected by the way that we now rely heavily on technology. Technology is now a part of everything we do – both at home and work—and in order to stay relevant in today’s world, all industries must continue to be innovative and remain up to date with technological advancements, especially in the workplace.19 October 2017
If someone was to ask you how much your payroll operations cost, would you know the answer? It seems like a straightforward question, yet the answer for many HR professionals is often hard to pinpoint. Understanding – and therefore being able to make future projections – about how much your payroll costs requires a clear appreciation of various business components.10 October 2017