Should it stay or should it go? When is the right time to hand your payroll to an outsourced provider?
For every business that outsources its payroll, there’s a tipping point between processing in house and asking an outsourced provider to take the reins. It’s not always a single event that provides the final push towards outsourcing – it’s just as likely to be a slow realisation that your payroll would be better in other hands. So if you’re teetering on the brink, here are some signs that it could be time to act.
Your payroll takes longer than you think it should
In-house payrolls can be an area ripe for empire-building, particularly within SMEs.
If, despite all the technology you’ve invested in, all the training and all the burden-easing on the overworked payroll processor, the job still takes the time it always did, chances are the work is expanding to fill the time available. Time to outsource.
It’s no longer a one-person job
Alternatively, your expansion and recruitment could have seen an explosion in staff numbers that has seen payroll become far more complex, and virtually an industry in itself. There’s no reason you can’t continue to operate with a growing in-house payroll team. The question is do you want to when there are other simpler, dedicated, and expert options available?
Errors are being repeated
Every in-house processor is allowed the odd error. The issue is how those errors are addressed, and whether the same things keep happening. If they do, it’s probably time to outsource.
You have plans to expand
Expansion brings enough headaches – from premises to recruitment to equipment to sales – without having to factor in a growing payroll. When payroll processing is just one extra expansion headache you could do without, outsource.
You’ve been left high and dry
We’ve lost count of the numbers of business owners we’ve spoken with who always had plans to train someone else to do the payroll, but never quite got round to it. Then, when the regular processor left, fell ill, started maternity/paternity leave or otherwise left their post, panic set in.
If you’re planning to keep payroll in-house, ensure you have your succession planning and training completed while your existing payroll processor is in post – because it’s too late afterwards. Otherwise, outsource.
Want to discuss outsourcing your payroll? Talk to us about it here.