Recently we’ve seen a growing number of companies move from fully outsourced payroll services to an in-house process. It is clear the mindset for outsourced payroll is changing, in favour of an in-house solution.
So, why are businesses making this move? We’ve collated the top five reasons we’ve seen in the industry.
1. Cost savings
Typically, a fully outsourced payroll service will cost on average £11 per employee, per month, which can quickly add up – especially as you increase your employee numbers. Further costs are incurred when you opt for basic HR functionality such as annual leave management and auto-enrolment.
Employers who opt to bring their payroll in-house, will reduce these types of ad hoc fees, lowering the overall costs. Furthermore, having a payroll specialist in-house means they can work closely across departments such as HR and finance to manage and analyse payroll reports.
2. Better security and control
Processing your payroll in-house has the benefit of increased control, with instant access to your payroll and employee information. In-house control allows for direct access to payroll reports, current and historic employee payslips, payments to HMRC, and much more.
When outsourcing to a payroll provider, important, confidential data is being transferred out, creating security risks. Whilst external companies may have good security and processes in place, there’s nothing like the peace of mind knowing that your data is held securely in-house, easily accessible to those with permission.
3. Time savings
Do you need to change a payroll rule? Do you need to enter a new employee into the system? Are permissions of pay reporting changing hands? When you’re outsourcing payroll, these changes could take days or even weeks to action. You’re waiting on someone external to complete what might be urgent changes.
With in-house payroll, you can make instant changes to your processes and act right away. It takes the middleman out of managing your payroll. In-house processing allows employers to make last-minute adjustments and still pay their employees accurately and on time – without delay.
4. Increased accuracy
An in-house integrated system provides a single version of all the information you need, all in one place, ensuring no inaccuracies in pay. Furthermore, you’ll only need to update one system with new information, such as pay rises or new starter details.
When outsourcing payroll, mistakes can occur if up to date information is missed or communicated incorrectly. Sending large reports each month, from multiple departments, also creates the risk of inaccuracies, in addition to being very time consuming.
5. More efficient processes
Typically when outsourcing, employers manually enter employee hours and timesheets into an excel sheet or CSV file to then email to their outsourced provider for processing.
In-house payroll software allows employers to instantly upload employee hours and apply the relevant pay rates, on a single system. This removes the back-and-forth communication with an outsourced provider to update employee hours each pay period, creating a more efficient process.
Have you thought about brining your payroll processes in-house? To learn about our payroll solution, Miracle, and the benefits it could bring for your business, follow this link.