We have pulled together a list of 10 reasons why outsourcing your payroll may benefit your charity or not for profit organisation
- Cost.Figure out how much your payroll is currently costing you and compare this to the cost of outsourcing. Remember to include items such as salary, training, IT, support, sickness and holiday cover, professional services questions. You'll probably be surprised by the result.
- Productivity. Managing your payroll is a time-consuming activity. Removing the burden means you can focus your people on your core activities.
- Accuracy. Payroll mistakes can be painful and costly and have demoralising impact on your employees. Payroll services providers are far less likely to make a serious error than your in-house staff.
- Reliability. If you are processing payroll in house your service is only as reliable as the people doing the work. Outsourced payroll for your Charity increases reliability and you don't need to worry that the speed or quality of your payroll service will vary with employee changes, sickness or holidays.
- Speed. Payroll service providers specialise in just that. They will be quicker, more efficient and have capacity to handle extra tasks and increases in employee numbers.
- Expertise. Payroll providers will have well trained staff familiar with all of the complexities of payroll matters. You could try to achieve the same level of understanding internally, but it would take a considerable investment in time and effort.
- Accountability. If there are errors it's the payroll service provider's responsibility to fix things. They will remedy situations to your satisfaction quickly and if they don't you can sue for breach of contract.
- Risk. The management and minimisation of risk is usually very high on any Charity objectives. In addition to reducing risks already identified above, outsourcing introduces segregation of duties into your Charity. No one person is responsible for the whole of the payroll function.
- Security. Do you have the time and are you capable of close supervision of the payroll to spot time errors or even fraud? Payroll services firms have technologies that can spot and alert clients to various types of payroll fraud, such as payment manipulation and "phantom workers."
- Worry. There's a lot to be said for the peace of mind that outsourcing payroll services can bring to a Charity. No headaches, no hassles. You're left to focus raising funds and delivering benefits to the community.
- Technology and innovation. A payroll service provider will have far greater resources than you to access the best technology for delivering payroll services. They will also innovating in the world of payroll in areas such as ePayslips and the use of smart phones that are simply beyond your reach.
- Fixed to variable cost. When employee numbers increase or decrease you are probably faced with a fixed cost of delivering your payroll internally. With an outsourced payroll provider there is much greater flexibility. Pricing is normally linked to the number of payslips produced and will automatically reduce if your employee numbers are reducing. Outsourcing can turn your fixed cost into variable ones.
Okay, we said 10 but there are a few more