Make Your Business Flourish With Payroll Outsourcing

Recent times have borne witness to the increasing popularity of payroll outsourcing as a standard practice among companies, both big and small. The ongoing pandemic has also accelerated the demand for third-party services for payroll processing as organizations gear up to make up for the time lost during remote work. Having more time to dedicate towards the more important functions of your business can generate more revenues leading to higher turnover and profit rates. 

How expensive is in-house payroll processing?

Nearly 60% of companies worldwide relied and continue to rely on themselves to process their payroll requirements, especially in the pre-pandemic past. However, recent events, mainly the onset of the COVID-19 pandemic, have called into question the supposed cost-effectiveness of in-house payroll processing. A careful analysis of corporate practices reveals that in-house payroll processing can actually be more costly in terms of:

• Time:

It is no secret that in-house payroll processing is extremely time-consuming. In business, time spent well is money earned well. While working on something as complex as payroll processing, employees, especially HR officials, will have less time left to focus on tasks that are more important to the nature of the business. This leads to an overworked workforce, less output, and less revenue as a result. 

• Additional staffing:

Processing payroll is a complicated process as it involves computing superannuation, monthly regulatory lodgements, reporting and preparing payslips, rostering and time attendance, and award interpretation, in addition to compiling reports at the end of every financial year. With time crunches, and risks of employee burnout and possible non-compliance looming, companies are forced to hire extra employees to aid in payroll processing and other functions. Additional staffing is another added expense for a company that is already trying to combat the demands of a fast-paced market while attempting to compensate for lost time. However, outsourcing your payroll concerns can save you the time and money spent on in-house payroll processing. 

• Defaults in compliance:

A major payroll problem that companies battle worldwide are possible cases of non-compliance with HR law. Accounting legislation is complex and differs from place to place, in addition to being subject to frequent revisions and updates. Defaults in complying with the law can have serious legal implications for the company which can hurt their business in more ways than one. This makes it vital yet burdensome for a company’s HR department to stay up-to-date with the changes in the law. 

• Ensuring security:

Since payroll processing includes very sensitive and highly confidential information, it is important to employ only the most superior and secure payroll management softwares. However, such softwares are expensive and require frequent updating. Additionally, it also increases the workload of the IT department, costing employers time and labour.

How outsourced payroll can bring in more money

Outsourcing your payroll to third-party service providers is a smart way of reserving more time and manpower to manage and prioritize your company’s core business affairs. Contrary to misconceptions, outsourced payroll is more cost-effective than in-house payroll with regards to time, money, and effort. By outsourcing your payroll to a reliable payroll service provider, you can:

• Save money otherwise spent in hiring additional staff and payroll experts, and purchasing expensive secure payroll softwares
• Save time that can be used to prioritize primary business concerns that can increase productivity and profits
• Get guaranteed compliance with HR law with the help of reliable and resourceful payroll experts, saving you potential expenses in legal fees and fines
• Get hassle-free service which can reduce employee burnout and turnover rates, and help your business flourish

About BSH:

Since 1993, BSH has been delivering state-of-the-art proprietary solutions to companies across the Middle East, enabling streamlined HCM processing and cost-effective practices. Their 12-year partnership with the world-leading ADP, coupled with a clientele spanning 300 multinational corporations operating in the Middle East, have made them a trusted leading regional figure in the fast-growing global payroll service.