When it comes to payroll, it can be hard to manage every aspect in-house and make sure you’re up to date with new regulations and employment laws. Ticking every box is a non-negotiable requirement, unless you want to deal with a dissatisfied workforce, costly compliance fines, or reputational damage. Which let’s be honest, no one wants to handle. That’s why many companies choose payroll outsourcing.
But, why outsource payroll when you can do it yourself in-house?
There are a whole list of reasons why outsourcing your payroll might be right for your business. We’ll delve into some practical examples to help you make an informed decision about your payroll processes.
Benefits of outsourcing payroll
While payroll outsourcing isn’t an opportunity to wave goodbye to your payroll entirely (as much as you may wish it were), it is a chance to take what was once a time-consuming task and turn it into something manageable. By significantly minimising your input and letting someone manage it for you!
While that huge benefit might already have you convinced, there are more advantages to consider:
- Compliance is taken care of by professionals who are well-versed in everything from the latest legislation laws to national insurance contributions, making sure your business meets all the necessary regulations.
- No more struggling to find payroll talent; outsourcing makes professional support the minimum, saving you time and money, all while giving you the expertise you need whenever you need it.
- Using cloud-based servers and encryption technology, outsourcing your payroll brings another barrier of defence to your data security measures, minimising operational errors and data breaches.
- You’ll have powerful data-management tools supporting all your processes—including single-entry for your data, all while reducing errors in input.
- By outsourcing your payroll to an expert, you relieve your employees of legislative payroll processing—and all the compliance complexities that come with it—allowing them to focus on areas that will truly drive your business forward—boosting morale and helping your business grow.
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Why outsource payroll?
If you’re wondering exactly how outsourcing payroll can benefit you, here’s some practical, real-world examples of why outsourcing payroll can help.
Managing absence with payroll insights
While everyone needs time off, multiple absences can be hard to manage, and patterns can slip through the net if you don’t approach employee absence correctly. But, without the correct insights, it can feel impossible to approach. This is where outsourcing shines.
For example, a marketing agency noticed a drop in productivity and high sickness levels, but they couldn’t pinpoint why.
As they started to outsource their payroll, their provider helped uncover the problem by supplying a clear report showing that absence in the team was three times higher than the company average, with frequent Monday and Friday absences, and one employee on long-term sick leave with no return to work plan set out by their HR team.
Armed with these insights, the HR team investigated the root causes through conversations and feedback, then introduced a clear absence management policy alongside wellbeing initiatives. By continuing to track these trends through their payroll reports, they saw absence rates fall, improved morale, and less money spent on absence—showing how outsourced payroll can support proactive, data-led absence management.
You can find out how we helped a business save £90,000 on absence with our outsourced services here.
Payroll accuracy, every time
Accuracy is something you can’t afford to risk when it comes to payroll—quite literally when costly fines and penalties come into play. With outsourcing, it’s a worry you can put behind you.
Take our next example, for instance. A business was growing, which should be a positive, right? But, as they are still manually processing their payroll data, errors were slipping through the net as they tried to keep up with the additional workload. As the business didn’t have visibility of their payroll, manual errors slipped through the net, costing them when payroll was processed.
With outsourcing, they had greater control and visibility of their payroll processes with real-time data available just a click away. This not only gave them more time to focus on other areas of business, but also peace of mind that there wouldn’t be any glaring discrepancies in their payroll come payday, thanks to automated calculations and best practices and procedures now being in place.
You can read here how we helped a business get 99.9% accuracy in their payroll processing.
Expert knowledge for small businesses
Getting your head around payroll processes can be complex, especially if it’s not your main role in your workplace. But the errors you can make by not having the knowledge you need to do it correctly can be costly, not just financially but reputationally, too. Payroll demands a level of expertise that goes far beyond simple number-crunching—and this is expertise outsourcing provides. Like in our next scenario…
A small business with around 50 employees was finding it hard to keep up with the complexities of payroll, employment legislation, and managing staff issues. With one person balancing payroll responsibilities alongside their other tasks, they wasted valuable time trying to interpret rules and keep on top of compliance changes—time that took them away from running and growing the business.
By outsourcing payroll to a specialist provider, they gained not just accurate and efficient payroll processing but also access to expert advice whenever they needed it.
For this small business’ payroll, having an expert partner on hand meant fewer mistakes and reduced risk, freeing up the team to focus on other priorities.
Sound like your business? Read about how we provided payroll expertise to a small business, filling in the gaps in their knowledge here.
Why outsource payroll with Cintra
Outsourcing your payroll isn’t just about handing over a time-consuming task—it’s about gaining the expertise, technology, and insight to make payroll a seamless, reliable part of your business.
At Cintra, we don’t just process your payroll; we become an extension of your team, giving you the confidence that your people are paid correctly, on time, and in full compliance with the latest legislation. Whether you’re a growing business looking for efficiency, a small company needing expert advice, or a larger organisation wanting better insights into your workforce, we’re here to help.
Ready to see how outsourcing payroll could transform your business? Book a demo today to see how outsourcing can transform your payroll process.
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