10 Benefits Of Outsourcing Payroll For SMEs

Categorised in: Medium business, News, Payroll

Outsourcing has become an increasingly popular solution for small and medium-sized enterprises looking to streamline their operations and focus on core competencies. Among the various functions being outsourced, payroll management stands out as a task that offers numerous advantages when entrusted to an external partner.

Payroll Management A Burden For Many Businesses

Payroll management can often be seen as a necessary evil for businesses, monopolising time and resources to the detriment of other areas. Indeed, a 2023 OnePoll survey of 250 UK payroll managers across a range of business sizes found:

• 32% of payroll managers invested over 7 days per month to payroll processing
• Many payroll systems and practices in medium to large organisations were considered outdated, with 90% of payroll managers manually inputting data in to spreadsheets every month
• 77% of managers in these organisations felt that payroll management was a contributor to workplace burnout and stress
• 71% recognised a need to change their current payroll provider

These figures make for stark reading, but partnering with the right payroll services provider can alleviate this pain and stress.

Key Reasons To Outsource Payroll

Outsourcing payroll with HIVE360 can bring about significant benefits. Let’s delve into the top ten advantages:

1. Cost savings: Managing payroll in-house can be costly due to the need for specialised software, staff training, and potential errors that may incur fines. Outsourcing payroll eliminates these expenses, allowing businesses to allocate resources more efficiently.
2. Time efficiency: Processing payroll demands considerable time and attention to detail. By outsourcing this task, businesses free up valuable time that can be redirected towards strategic initiatives, enhancing productivity and overall business performance.
3. Compliance assurance: Navigating the complex landscape of tax regulations and employment laws in the UK can be daunting. HIVE360 offer fully compliant PAYE support and stay abreast of legislative changes, mitigating the risk of penalties or legal issues for your business.
4. Data security: Payroll data is sensitive and must be handled with the utmost care. External payroll partners invest in robust security measures to safeguard sensitive information, reducing the risk of data breaches or identity theft compared to managing payroll in-house.
5. Accuracy and precision: Payroll errors can damage employee morale and lead to costly rectifications. Outsourcing to experts minimises the likelihood of errors, ensuring accurate calculations and timely payments, which enhances employee satisfaction and trust in the organisation.
6. Scalability: As businesses grow, so do their payroll complexities. Outsourcing payroll offers scalability, allowing businesses to seamlessly accommodate fluctuations in workforce size without the need for significant adjustments to their payroll systems or staffing.
7. Access to expertise: HIVE360 possess specialised knowledge and expertise in payroll processing, tax compliance, and legislative changes. Leveraging our expertise allows businesses to benefit from best practices and industry insights, enhancing the efficiency and effectiveness of payroll operations.
8. Reduced administrative burden: Managing payroll involves numerous administrative tasks, from calculating deductions to issuing payslips. Outsourcing these responsibilities alleviates the administrative burden on internal staff, enabling them to focus on core business functions.
9. Workforce support: In addition to payroll support, you and your employees will also have access to a wider range of HIVE360 benefits, including our award-winning Engage mobile app, providing pension information, wellbeing, benefits and savings.
10. Enhanced focus on core business objectives: Ultimately, outsourcing payroll enables businesses to refocus their attention on core objectives such as innovation, customer service, and business growth. By delegating payroll management to external experts, businesses can devote their resources to areas that drive long-term success.

HIVE360 – Payroll Outsourcing Expertise At Your Fingertips

Outsourcing payroll to HIVE360 offers numerous benefits for SMEs, ranging from cost savings and compliance assurance to improved accuracy and scalability. By entrusting payroll responsibilities to professionals, your business can streamline operations, mitigate risks, and allocate resources more effectively, ultimately gaining a competitive edge in today’s dynamic business landscape.

Ready to get started or need more information? You can speak to one of our experts or book a demo of our app here and see how HIVE360 can push your business forwards.