Author: Anastasia Borovaja
People are a company’s most important asset, which is why employment relations have to be handled with great care. Properly formulated employment contracts and salaries paid on time establish the foundation for trust-based employment relations. To be sure that the foundation is strong enough, it is worth considering outsourcing payroll and employment relations services to a trusted and professional service provider.
Below we list eight main reasons why companies prefer outsourcing payroll operations instead of a dedicated in-house department.
1. Precision and accuracy
Errors in payroll accounting can cause stress and end up costing a company a lot of money. Regardless of whether the payroll accountant is in training, on holiday or on a leave of absence, payroll functions must always be performed at the right time and meticulously.
Selecting an outside service provider gives assurance that salaries will be paid out on time and correctly. Being paid on time increases employee satisfaction, and satisfied employees will be committed to your company and help your business grow.
2. Money saved
One of the main advantages of outsourcing payroll is the savings on expenses. Substantial money can be saved just from the fact that the company no longer needs to license costly payroll software. If you tally up the hours your employees spend on payroll, add in the costs of the software and training, the result could surprise you when you compare the outlay with what the payroll service provider gives you.
3. Access to technology
Implementing a payroll program is a major expense for a company. Often there is a lack of knowledge about which program to prefer. Payroll service providers have access to various software solutions and cloud services and can find the best solutions based on the customer’s needs. Your company will gain access to the best technology without additional expenditures.
4. Greater confidentiality, fewer risks
Salary negotiations and employment contracts should remain confidential, known to only the employer and the specific employee. Yet all too often, information on salaries leaks and this causes tensions in a company. A service provider with professional employees and secure software solutions can guarantee the confidentiality of salary data. In this way, you’ll significantly reduce the risk of the salary information falling into the wrong hands.
5. Processing of personal data
Payroll accounting involves major amount of processing of personal data. An outside service provider can ensure that processing, recording, retention, forwarding and disclosure or destruction of personal data are all in line with the valid requirements. Grant Thornton Baltic’s payroll accounting team works closely with their colleagues from legal advisory. We give you assurance that employees’ personal data and salary information are handled pursuant to the requirements of the EU’s General Data Protection Regulation and are protected in a secure manner.
6. Involvement of experts
In-house payroll is only as reliable as the people who do the work. There’s always a risk of losing the payroll specialist and if that happens, all their knowledge goes with them. With an outside partner, you don’t have to spend time training new staff or helping them learn the ins and outs of your company’s payroll system. You can be certain that the payroll service provider will maintain continuity of payroll accounting.
7. Keeping up to date with legislation
Errors in employment relations due to a deficient understanding of the law can wind up costing a company a lot of money. To avoid disputes with your employees, it is worth boning up on everything related to labour law and where necessary, relying on specialist assistant. When you’ve found a trustworthy, professional partner, it gives you access to knowledge otherwise lacking in your company.
Grant Thornton Baltic’s experienced legal advisers have a thorough knowledge of labour law and ensure that our payroll team is always up to date with the latest changes to legislation. In this way, we guarantee you payroll accounting that complies with the letter of the law even in changing circumstances.
8. Management can focus on the company’s main line of business
Outsourcing payroll functions means peace of mind for a company’s management. No headache, disputes, stress, other concerns – you can focus on running your business, safe in the knowledge that payroll will be handled properly, efficiently and in full compliance with the law. Your company’s management can focus on its bottom line, investing into strategic resources that increase value and support the company’s growth.
If these reasons struck a chord in you and you’d like help in restructuring your payroll process, don’t hesitate to contact us!