If your HR team is already overburdened, managing payroll can be even more difficult. You are aware that a late pay run can result in disgruntled employees. You are also aware that a hurried pay run may contain errors. The last thing you want is for your company to face costly fines or lawsuits as a result of a simple payroll error. That is why payroll outsourcing is the best solution.
In this article, you will learn everything about how outsourcing payroll can improve HR efficiency while also lowering costs. Let us observe:
1. Save time while avoiding costly compliance mistakes
2. Boost productivity by streamlining processes and simplifying data analysis
3. Access to an expert team without the salary costs
4. What are the advantages of payroll outsourcing?
5. How can Connect Group help you?
Save time while avoiding costly compliance mistakes
In recent years, the HR team’s responsibilities have expanded significantly from day-to-day personnel management and administrative tasks to now delivering key company objectives. HR professionals may struggle to find time for core strategic imperatives between scheduling interviews, running performance appraisals, and processing payroll.
As a result, important but non-urgent goals such as strengthening company culture and employee experience frequently suffer. It is no surprise that many HR departments are stressed and overwhelmed. Payroll errors may occur when HR teams are overburdened. Small payroll errors can have serious consequences for your business, including:
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- Payroll errors can result in negative publicity for your company, leading to distrust from both clients and investors. As a result, profits and the value of your company may suffer.
- Employee dissatisfaction. Every employee has a basic expectation of being paid correctly and on time. Repeated payroll errors can cause employee dissatisfaction, lowering productivity and increasing staff turnover.
Payroll regulations are complex and change frequently, making it difficult for HR teams to stay current. If your company operates in multiple countries, payroll compliance becomes more difficult because your team must stay up to date on each country’s specific regulations.
Outsourcing payroll frees up time that your HR team would have otherwise spent attempting to stay up to date on changing compliance regulations and performing repetitive payroll processing tasks. It enables them to properly focus on core strategic activities that add more value to the business.
Boost productivity by streamlining processes and simplifying data analysis
Expert payroll outsourcing providers automate and streamline payroll processing by utilizing advanced, all-in-one Human Resource Management System (HRMS) solutions. This eliminates the need for manual calculations or data entry, which can improve the speed and accuracy of your pay run significantly.
Payroll processes that are more streamlined boost productivity by allowing your HR team to focus their time and energy on core strategic business activities. Furthermore, your company would no longer need to purchase the most recent HRMS software upgrade or maintain cloud security to support it, resulting in even more savings.
Outsourcing payroll can also improve HR efficiency by making data easier to analyze. Payroll outsourcing vendors can use various types of advanced HRMS software to provide unparalleled reporting capabilities and workforce visibility.
Hence, with the click of a button, detailed reports can be generated, providing business insights faster and more easily. With these insights, your team will be able to make better strategic decisions for your company.
Access to an expert team without the salary costs
Finally, outsourcing to a professional payroll service provider offers your company access to a pool of HR knowledge specialists without the cost of hiring them in-house. Our payroll experts at Connect Group have worked in a variety of industries and situations, which means they can:
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- Guide you on best practices.
- Identify key risks and potential problems and provide practical solutions that save your team time and resources.
- Ensure that your company is up to date and fully compliant with all relevant payroll regulations.
- Provide regular reports and valuable insights for your business.
Not only that, but you can also benefit from the wealth of knowledge that our team of professionals at Connect Group has in a variety of business disciplines, such as taxation; staff outsourcing; and even company formation. Our centralized services allow you to receive help in a variety of areas while streamlining your outsourcing processes.
What are the Advantages of Payroll Outsourcing?
“Why should I consider payroll outsourcing and what are the advantages?“. Specialists say that after decades of advising business owners on whether to outsource payroll or do it themselves, they have identified ten key reasons why companies choose to outsource these tasks.
Productivity & Time Savings
It is common knowledge that payroll processing within your organization takes a lot of time. Keeping track of benefit deductions, garnishments, new hires, terminations paid time off, and changes in federal and state regulations can be time-consuming. Every year, a significant amount of time is spent preparing W2s and ensuring that they are sent out on time.
Outsourcing payroll allows employers to focus on their core business while freeing up the business owner, human resources, or accounting personnel to work on more strategic tasks that may affect your bottom line. Hence, who is in charge of payroll management will need a significant amount of time and attention to detail; regardless of the number of employees in your company.
Pay period after pay period requires the business owner to input critical amounts of data and double-check for any typing errors, taking time away from tasks that a small business owner must attend to; for example, customer service. Those repetitive tasks should not consume hours of key management or the owner’s daily productivity.
Payroll outsourcing immediately frees up valuable time. Employers only need to communicate with their outsourced payroll specialist once per pay period by approving time.
Reduce Your Expenses
Working with a payroll provider can significantly reduce the direct costs of payroll processing. Payroll departments in large corporations can afford to be robust. Having an in-house payroll process, on the other hand, is a money drain for small and medium-sized businesses.
If your company has fewer than 30 employees, you may be able to save money by outsourcing your payroll operations. Perform the calculations. Calculate the number of labor hours your employees devote to payroll-related activities:
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- Calculating payroll each period.
- Printing.
- Signing.
- Distributing paychecks or pay stubs.
- Computer software and program maintenance.
- Training and support.
- Being aware of changes in tax rates/laws..
- Doing all the tax and payroll paperwork with the government
- W-2s.
- Garnishments.
- New hire reporting.
- Making reports for in-house and accountant use.
The outcome will most likely surprise you. When you consider the cost of an employee’s wages and benefits, it can quickly add up.
More Details
If you own a small to medium-sized business and try to do payroll yourself or in-house, the cost of time spent is even higher. When you outsource payroll, you do not have to worry about your payroll processing company calling in sick, resigning, wanting to take a vacation, or requesting paid maternity leave.
When it comes to payroll, there’s also the issue of confidentiality. If an employee wants to “share” how much another employee makes, it can lead to extreme workplace drama. Several clients have said that it is much more efficient than if they asked their bookkeeper to handle it, or if they tried to handle it themselves.
The majority of accountants will also advise a business owner to outsource their payroll. Many of our referrals come from accountants who have recently recommended to their clients the benefits of payroll outsourcing in the UAE.
Experts Group
The majority of business owners and payroll personnel do not have the time to research and study constantly changing regulations, withholding rates, and government forms. By outsourcing payroll, a small business can gain access to expertise that was previously only available to large corporations.
The most valuable payroll companies have a team of experts who handle many aspects of HR and payroll. For instance, a benefits department would be in charge of the administration of benefits and deductions in the payroll system, workers’ compensation experts would handle the changing of class codes if an employee’s job changed; and human resource experts would assist with employee issues and HR strategy.
Also, if your payroll service can provide a 401k plan, that is an added benefit because those transactions are also included in payroll management. Make sure you hire a qualified team of experts who can handle all aspects of your HR and payroll requirements.
Increased Security
Payroll processing is a difficult and potentially dangerous business operation. Even with long-term trusted employees, there is always the possibility of identity theft, financial embezzlement, or tampering with company files for personal gain.
When using in-house payroll software, there is also a clear risk: How secure is payroll data stored on the company’s server or network? This very real question can also consume the energy and attention of a business owner.
Do you have the time and energy to closely monitor your company’s payroll for time and rate violations and other unethical behavior? Most payroll services use technology to detect and alert clients to various types of payroll fraud. Furthermore, online payroll solutions provide a “haven” for your sensitive payroll data.
A quality payroll provider invests in cutting-edge data storage and protection systems, in addition to redundant backup and multiple server locations, simply because it is part of the service provided to clients.
Obtaining employee access to a Human Resources Information System (HRIS System)
Human Resources Information Systems (HRIS) have become critical tools for many businesses. Even a small, 20-person office must recognize the advantages of HRIS to become more efficient. Many businesses are unaware of how much time and money they are wasting on manual human resource management tasks until they take stock of their time.
It enables businesses to reduce costs while providing more information to employees in a faster and more efficient manner. The following are some examples of how employers and employees obtain HR information:
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- Employers gain access to invoices and payroll reports.
- Employee information can be accessed and updated.
- Income new employees.
- Fill in the time reporting information.
- Allow for open enrollment in benefits.
- Employees must be communicated with.
- Make your reports.
- Maintain PTO records (Paid time off).
- Benefits plans and custom benefits documents must be uploaded.
- Employee handbooks and other HR PDFs should be uploaded.
- Keep track of employee licenses and certifications.
- Performance evaluations
- Training logs.
- Reports on total compensation.
Employees gain access to:
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- Check reviews.
- Examine the benefits information.
- Information that they should update.
- Any corporate documents.
- Enroll in benefits online.
Avoid paying for technological advancement
A common concern for small business owners is whether they have the most recent version of their payroll software and tax tables installed on their computers. Using incorrect tax tables can result in severe penalties. Paying a maintenance fee and upgrading software is an ongoing fixed cost.
Payroll outsourcing in the UAE eliminates those costs and headaches while keeping payroll running smoothly.
How can Connect Group help you?
If your HR department is under pressure to do more with less, now is the time to consider payroll outsourcing. Connect Group’s payroll experts can handle payroll for you, freeing up your team to focus on strategic HR imperatives like strengthening company culture and increasing employee engagement.
Essentially, this means increasing the efficiency of your HR team while lowering costs, as previously stated. Without a doubt, with us, you will get the best services of payroll outsourcing in the UAE.
Would you like to learn more about how outsourcing payroll can improve HR efficiency? Please, contact us! Give us a call at +971 43 316 688 to ask us any questions. Another option we have at your disposal is our email address: [email protected]. Send us all of your inquiries and we will gladly assist you.
Do you want to change your current job? You can go to thetalentpoint.com to look for new opportunities. Then, you will see all our job offers. In addition, you can send your resume to [email protected] as well.
