In the past few years, small and large business, start-ups and organisations from all niches are opting for payroll outsourcing. Apart from being cost effective and time saving, outsourcing payroll has been preferred as it reduces legislation hassles, minimises risk and prevents heavy penalties levied on incorrect payroll information. However, even after gaining considerable popularity, outsourcing of payroll is surrounded by myths and concerns that don’t really exist. Here are some concerns about payroll that should not be a cause for worry in the first place.
Data security – Is it a real concern?
Although a realistic concern with any business, data security is a top priority for any payroll outsourcing company. While several finance professionals of the company worry about data security, especially payroll data, they have no reason to. Most payroll outsourcing companies invest heavily in the best and most secure technology to ensure data safety. Back-up software and storage are also in place for additional security. Outsourcing providers place utmost importance to data security and employ physical and intangible methods to keep your private data private.
These measures include physical security at entry points, impenetrable infrastructure for data transfer, clear desk policies as well as firewall defences. A concern about sensitive financial information is also well handled by outsourcing companies, who often quote that company data is safest with them.
Control over payroll – Who’s in charge?
It is a common misconception that payroll outsourcing is equivalent to losing control over payroll processes. In fact, with the right definitions and with the right outsourcing collaborator, you stand to have more control over these processes. While the outsourcing is being performed on the client server, it is being operated from a different location. In this setup, the company has to define job responsibilities and goals while monitoring employee performance.
When collaborating, the outsourcing company manages the payroll without taking away any control from the company. Apart from taking advantage of the expertise of outsourcing professionals, you can take better control of assessing employees and assigning payroll.
On the other hand, some companies are under the impression that opting for payroll outsourcing relieves them of their payroll functions. It is important to know that an outsourcing company merely manages the payroll while the onus of the entire process still lies with the client. The company is still required to collect and input essential details like pay information, time and vacation.
Expertise, experience and performance of outsourcing companies
While it is understandable that any company is concerned over the credibility and expertise for payroll outsourcing, it is important to note that all trustworthy and reliable companies are experts at their job. When you choose a reliable company, you no longer have to worry about their performance, expertise or experience in the field. Managing payroll remains the main business function of these companies and it is what they do best. However, it is also important to run thorough background checks, seek references and ensure that the contract is clean and hassle-free.
About the Author: Penny is an expert associated with i3Group a leading payroll service provider. Its custom corporate payroll solutions have helped blue-chip brands across industries manage payroll obligations efficiently and cost-effectively.