Why Outsource Payroll

The average growth rate of the outsourced services market remains at at least 20% per year.

There are several reasons why more and more companies are opting for outsourcing when it comes to payroll (and often it is not limited to just payroll outsourcing).

Payroll Costs

Lower operational and labor costs are among the primary reasons a company chooses to outsource. When done correctly, this step has a definite impact on the company’s revenues and can bring significant savings.

In payroll, costs are not only calculated based on the salaries of the employees responsible for this aspect of the business. It is also necessary to allocate funds for a payroll program (especially if the organization has a significant number of employees) and for any inspections from authorities.

Delegate Work and Reduce Risks

When you think of outsourcing, you automatically think of delegating work—someone else will take care of it. But when it comes to payroll, an important step in outsourcing also involves delegating responsibility. The company that takes over the payroll tasks will also have the responsibility for these activities. Thus, the focus of action will be concentrated on the main elements of the business that add value.

When You Lack Internal Resources

Another reason to outsource the payroll process is the lack of internal resources. Good payroll specialists must ensure correct salary calculations, on time and without the risk of fines. If you do not have these resources, it is simpler and less expensive to outsource.

Access to Technology and Legislative Consulting

When you outsource payroll, you have access to more options as a result of technological development. You can integrate elements related to time tracking, employee self-services, centralized reports regarding personnel movements, types of leave, etc. Moreover, all situations that require legislative interpretation will be solved by the company’s specialists.

In the case of Smartree, proprietary software platforms offer the advantage of continuous improvement, so a payroll module can be successfully complemented by other modules, such as Personnel, Time, Employee Self Service, Schedule, Reporting, Notifier, Flexible Benefits, Documents, and Recruitment within the MyStaff suite.

Request a payroll outsourcing quote for your company.