Payroll Outsourcing: Advantages and Disadvantages
07/05/2019 by Hicham HMICHE
07/05/2019 by Hicham HMICHE
Before looking more closely at the actual pros and cons, let's ask ourselves why payroll outsourcing cannot be universally applicable to all companies. In reality, it is a question of of choice and strategy. Pay slip outsourcing generates numerous benefits both in terms of the services offered and work reduction. But it also generates costs for companies, whether in terms of time or money. Before making a decision, it is therefore necessary to to know the rules that govern the outsourcing of pay slips.
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It is often the first benefit that a company expects when it expresses the desire to outsource payroll. In fact, managing employee pay slips is a relatively time consuming and complex. It requires a dedicated in-house staff that is sufficiently well trained. Often, there is no staff member dedicated to this mission and the Human Resources department must therefore take care of them in addition to their regular duties. However, it is not an easy activity to carry out! In addition to requiring a great deal of time and concentration from those who take care of it, it also requires a certain technicality. The management of pay slips often involves specialized tools, which are increasingly computerized. It is not always easy to master all their functionalities, which are sometimes far from intuitive. For all these reasons, outsourcing payroll therefore saves time. In addition, the process also saves money. The company no longer has to budget for training or training of staff. Hire qualified employees who will be able to handle payroll processing. A financial saving that also concerns the acquisition and access rights to the sector's management software.
Outsourcing payroll also means being able to to detach oneself from the underlying regulatory and legal issues, which are often a source of misunderstandings and misunderstandings. Thanks to payroll outsourcing, you no longer have to worry about possible changes in laws and regulations. Everything is taken care of by the subcontractor. In some cases, you can even gain in performance. The provider of services guarantees you a great professionalism, always in accordance with the laws in force. Having been able to develop a specific expertise in the field, this legal specialist can even help you avoid disputes with your employees. An undeniable strong point!
The last advantage refers to the abandonment of payroll software in your daily professional life. These tools with often complex interfaces will not have to be managed by your own staff. Indeed, via outsourcing of pay slips, it is possible to benefit from simpler interfaces. Usually, all you have to do is enter your data and you will have immediate access to all the documentation you need. At In case of doubt or questions, you can even count on individualized follow-up by a dedicated contact person at the service provider.
As the outsourcing of pay slips is more and more in demand, specialized companies are more and more numerous. And it is sometimes difficult to find your way around. Companies wishing to outsource payroll often think that the savings in time, money and peace of mind are automatically assured by the process. But this is not true! If the provider is badly chosen, it can even be worse than before. It is therefore a matter of knowing the capabilities of a subcontractor and his references before committing to a collaboration. Do not hesitate to Contact several companies to see which one will be the most competent to manage your employees' payroll. You need to find the one that suits you best in terms of pricing, but also in terms of solutions and human relations. In other words, the criteria to be considered are really varied! Outsourcing payroll requires prior knowledge of your needs. Do you need a contact person available at all times of the day? Conversely, would you rather continue to manage a large part of the project alone via a dedicated platform? Some companies refuse to engage in a relationship of over-dependence on the subcontractor. Be transparent with your provider about your needs and expectations. And this, from the very beginning !
Let's come to the other main disadvantage. Outsourcing payroll comes with a real risk of losing skills and positions internally. Since it is no longer your employees who manage the mission, you will soon find yourself with greatly reduced control of data and information. It is therefore not possible to consider delegating this activity to a third party without agreeing to let go and rely entirely on the subcontractor. Otherwise said, confidence must be built up. What's more, if before outsourcing, you had an employee whose contract was based solely on payroll management, his or her position could be threatened by the overnight. Before you head to a service provider, ask yourself the right questions. What are the skills, qualities and knowledge that you want to keep in your company? of your structure? Don't forget to discuss security issues with the company that will manage your pay slips. What about the level of confidentiality ensured and the data processing sensitive?