Payroll for Pay

by 10x Marketing - Date: 2008-08-01 - Word Count: 619 Share This!

Payroll is one of the areas of a business that is commonly neglected. Afterall, isn't nearly any other department more exciting? Marketing, research, human resources, even the IT department gets more attention. But could you be overlooking an important area? Could you be losing money with your current payroll system?


If your business is doing well, and expanding, outsourcing your Payroll service is something to ponder. As you grow, you don't want any area of your business falling into the forgotten category. What would a professional payroll service provide? Accurate payroll, employee benefits, taxes, background screening, and so much more.


Nobody wants to remove responsibilities from their employees. But sometimes there are responsibilities that would be better serviced by an outsourced company, rather than within house. Making the decision to outsource could actually be a wonderful thing for your employees, as long as you are substituting their former duties with new challenges. It could be that the very projects you outsource are the ones that your employees find tedious. Or, your employees may resent having anything taken away from them. But an employee who can't be flexible and change is not an employee who is going to work out for you, in the long term.


It’s pretty simple to outsource a solo project like a translation of web site, or a computer-programming project. But when it comes to outsourcing payroll, businesses are less likely to consider it. The sensitive financial information is a prime concern to businesses, and it should be. However, payroll service companies take many measures to provide secure transactions. Yes, you will need to be careful about whom you hire, of course.


The end result of outsourcing is that you could save untold hours of employee time and increase financial tightening. By re-distributing the responsibilities of your existing employees, you could remove the need for hiring on an additional person or persons, cutting excess salary and health insurance costs. Efficiency is important for a business, and although it is a status symbol to have many employees, so often there are unneeded positions. The bored, under challenged employee is an all too common symptom of over-zealous hiring.


Some people argue that outsourcing payroll is a ridiculous way of making things more complicated than necessary. But for big companies with an existing payroll department, you may be surprised by how quickly and efficiently an outside payroll service works. For tiny companies, it would not make sense to outsource payroll. But any company with over 10 employees could save serious time and money with a payroll service.


If you are a mid-sized company, you have a finance director who may process payroll already. But usually the finance director is overloaded with work, and that is one crucial area of your company where you don't want overloading, leading to mistakes. A good financial adviser is worth rubies. But don’t take advantage of her capable nature. Ask if the growth of your business might become a burden on her. Consider, will future business growth bring the need to hire more finance department employees? How necessary is it to hire them, with the salaries and benefits involved, instead of outsourcing? Have there been financial mistakes in the past few years, and to what degree of seriousness? Most likely, these mistakes were a result of an inefficient system.


Even if you decide not to outsource your payroll, investigating their strategies could be beneficial to your company. Consider that they are a company specializing in that area. They really focus on it! So their knowledge of what works is probably higher than that of your finance director who may be juggling many other responsibilities in addition to payroll.



Related Tags: payroll

About the Author: Amy Brevard is a Freelance Writer working with Innuity. For more information about Payroll go to Human Capital Strategies .

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