Is Outsourcing a solution for your payroll requirements?
Is Outsourcing a solution for your business?
There has been a lot of news about outsourcing lately. Some look to outsourcing as the saviour of their company; others see outsourcing as an evil job-killing tactic of management. Before you start to evaluate if an outsourcing strategy is right for your company, you need to understand what it is and what it is not.
Outsourcing is any task, operation, job or process that could be performed by employees within your company, but is contracted to a third party provider for an agreed period of time. Common outsourced functions include security, cleaning, IT and Website maintenance. Hiring a temporary employee while your financial controller is on maternity leave is not outsourcing.
The most common model of outsourcing that is in the news today refers to jobs that are being sent over seas to countries like India or China. This is more commonly called offshoring. Examples include telephone call centers, tech-support and computer programming. More common examples that are not going overseas are janitorial services, after hours answering services and security services.
There are many reasons why a company may choose to outsource a particular function of their business. Most managers have the end-result-in-mind that they are going to save time and/or money. Other reasons include:
Resource Shortages Relieved by Outsourcing
A particularly strong reason to outsource involves a shortage of a critical resource. This can be available employees that possess knowledge in a certain area (e.g. engineers, graphic designers, payroll professionals).
Outsourcing Provides the Ability to Concentrate On the Core Business
Some necessary, but peripheral operations are outsourced most frequently. This gives the managers the ability to concentrate on the core business issues instead of getting distracted by necessary repetitive back office activities that bring little if any benefit to the bottom line such as payroll processing.
Outsourcing Yields Cost Savings
Goodwill and employee motivation are critical factors in any successful business where people are required. People get annoyed, frustrated and distracted when their payroll is incorrect. Penalties, fines and interest can be significant for incomplete, late or inaccurate Revenue returns. By outsourcing payroll to a professional payroll company such as Paycheck Plus, you can be assured that your payroll will be processed correctly and Revenue returns will be filed on-time. With payroll taxes accounting for more than VAT and Corporation Tax combined, it makes sense to ensure you engage suitably qualified and experienced professionals to take care of this function.
Outsourcing Provides Flexibility
Seasonal or cyclical demands that ebb-and-flow put varying demands on the resources of the company. An outsourcing contract could provide the flexibility needed to stabilize these varying demands. Example: A business brings in extra retail assistants to help at busy periods or additional stewards are required to manage a festival or event.
Reduce Overhead Costs Through Outsourcing
Some functions require outlay of money just to get started. For example, payroll software, training, data protection and IT resources are required for the payroll function. This expenditure could be avoided by contracting with a third party such as Paycheck Plus who process your payroll in a secure environment with the latest software and processes to ensure data confidentiality, security and accuracy.
For further information about how Paycheck Plus can bring real value to your business through their tailored payroll services contact the Payroll Team on ++353 (0)41 686 3000 or request a callback to have one of the team contact you directly.