10 Myths Of Payroll Outsourcing

If you are feeling a little dubious about outsourcing your payroll, you should consider these ‘myths’ about around the issue:

1. Outsourcing payroll results in a loss of control

This isn’t true, as the best payroll outsourcing companies provide a bespoke service tailored to the individual requirements of each client company. The key to receiving what you need, when you need it is to agree how both parties can work in harmony during the setup phase, ensuring everyone understands their role in the process.

2. One can’t be sure the service will be reliable

Provided that you take care to select an experienced payroll services company that can produce testimonials from satisfied clients, then the service is likely to be much more reliable than if the function was carried out in-house. At Talk Staff Payroll, we are more than happy to talk you through our services, what we have achieved for other companies and how our service can best work for you. Take a look at some of our reviews here.

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3. The payroll provider may not have secure IT systems

It is most definitely the case that cyber security is a growing threat, and that no company can afford to neglect this issue. You should certainly make enquiries as to the extent of a payroll provider’s IT security arrangements before deciding whether to outsource, but you are likely to find that the provider treats the issue of cybersecurity with the utmost seriousness, and has extremely robust security and disaster recovery arrangements.

4. Outsourcing payroll is too expensive for me.

When all the costs of running the payroll operation in-house are added up, it can often be more cost effective to outsource. Consider not only the salaries of the staff employed in the payroll function, but also the costs of training them, the costs of operating the payroll computer system, and the costs of updating the systems to cope with legislative changes.

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5. Access to data will be lost.

All payroll providers should at the very least allow you access to data on request, should you need to produce a varied set of reports, then their payroll offering should be able to provide this.

6. In-house payroll knowledge is still required.

Provided that you supply the outsourced payroll provider with a point of contact, then there is no need for any in-house expertise. The payroll provider can take care of everything you want them to do.

7. The service from the payroll provider will be impersonal.

Again, this is something you should check before deciding whether to outsource, but the best payroll providers offer a truly personal service. At Talk Staff Payroll, we take the time to fully understand your business, providing a human to human service which provides a truly personal service. We provide a dedicated point of contact and consider ourselves an extension to your team.

8. It’s working fine doing things in-house.

Yes, it may be the case that things run smoothly in a great many companies with in-house payroll operations. However, what happens if a key staff member falls ill, or leaves the company? What if the payroll computer system failed? Can you keep up with legislative changes? In addition, outsourcing payroll allows you to concentrate on day-to-day management and on growing your business – spend more time on what you’re passionate about.

9. The outsourcing payroll process will involve a lot of hassle.

Not true, given that experienced payroll providers are well used to managing the transition of companies’ payroll functions. The best providers should be able to complete the process within 8 weeks.

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Author: Gary Parsons
Gary is CEO at Talk Staff, passionate about the role that people play in helping build long-term and sustainable businesses. He sits on local business advisory boards and has been key in leading the growth of Talk Staff from inception in 2009.