Considering outsourcing payroll to save money? Take a look at what you should bear in mind before making this decision, and some tips on finding the best payroll agency for your business needs.
In House Payroll / Outsourcing
Outsourcing payroll is a common business strategy many small to medium sized business adopt. They do this to save money and time as payroll can be a lengthy process, but it is not always a big enough job to set up a department for when the business is still quite small.
Small businesses that do not outsource payroll will often end up doing the payroll work alongside their other main duties. This not only causes more work for them, but also means mistakes can be made more easily.
If you have a business of over 20 employees however, you may find you could benefit from setting up a department where payroll would be a core part of the duties. This could be encompassed in HR for example.
Businesses who are still in their early stages of growth, and have just under 20 employees but are regularly hiring new staff as their business continues to grow and make profits at a steady rate, may also want to consider an in-house HR team. The HR department will not only be in charge of payroll – but will help with the recruitment of new members of staff, which if the business is growing at a certain rate – may really help the rest of the company focus on their main work – as opposed to recruitment.
What to Look for in a Payroll Agency
If outsourcing payroll does seem to be the cheaper option, and will save you the time and hassle from completing the work yourself, then consider the following when looking for a payroll agency.
Each payroll agency will be different; some will have more experience with working with small start up businesses, while others will be able to accommodate a company of thousands of workers.
What experience does the payroll agency have with the type of business you are? Can they give you examples, and if not, how confident are they that they will be able to meet your needs?
Price and Packages
Different agencies will charge differently, so while you do not want to necessarily go for the most expensive, you will need to make a list of all the services you require so you can get the most for your money.
Most will offer different grades of the types of packages they provide. Consider though whether you would actually make a saving by opting out of having pay slips printed for example – you may find the ink you use printing them in the office – and the time it takes- is a false economy.
The last thing to consider is whether the payroll agency will be able to accommodate you should you acquire many more employees. Will they charge you more – and if so, do you think this rate is fair?
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