5 reasons you really should be outsourcing your payroll

5 reasons you really should be outsourcing your payroll

In today’s world, payroll is the beating heart of forward-thinking businesses, especially if you are expanding into international markets where each new territory presents its own set of unique payroll challenges.

Gone are the days when payroll was merely a back-office function. 

In today’s world, payroll is the beating heart of forward-thinking businesses, especially if you are expanding into international markets where each new territory presents its own set of unique payroll challenges. 

Despite the importance of payroll to business operations however, 66% of payroll professionals and 51% of HR practitioners say their organisation sometimes cuts corners when it comes to payroll - which could have a significant impact in terms of compliance and business reputation. 

So, if your payroll isn’t quite up to speed and you are struggling with a lack of resources, find yourself constantly correcting errors, or are finding it challenging to keep up with ever-changing rules and regulations, read on to discover how outsourcing your payroll could help…

5 reasons you should be outsourcing your payroll

1. Avoid costly errors

From errors in calculating and paying taxes to overpayments and underpayments, payroll accuracy is a big challenge for businesses today. In fact, nearly 90% of businesses made payroll errors in 2022. 

However, when you outsource to a global payroll provider, you will benefit from necessary technology and expertise to reduce risks and avoid expensive errors. 

When you outsource payroll services, you can reduce manual processes and drastically reduce the risk of human error, saving a significant amount of time and expense that would have previously been spent rectifying mistakes. 

Additionally, you will also benefit from the specialist expertise you need to ensure your payroll is as accurate as possible. 

Not only is this important for continued business success, but from a compliance perspective, such efficiencies will also result in a reduction of legal risks and potential penalties - which leads on to our next point… 

2. Ensure compliance 

When expanding into international territories, compliance will undoubtedly be one of your biggest concerns. 

If there’s one thing that’s constant, it’s change. Labour laws around the world are changing all the time, and each destination comes with its own set of tax requirement, regulatory processes, and payroll procedures.

When you outsource to a global payroll provider, you will have access to a team of professionals who have a deep understanding of the different laws and regulations in each different country. 

Not only can this save you a significant amount of time and money by ensuring you comply with each location, but they will also help you maintain and audit company policies to ensure your payroll is always agile and compliant, even when regulations change. 

3. Increase productivity

It goes without saying that one of the biggest benefits of outsourcing your payroll is that it will free up your employees to focus on other business critical tasks.

Outsourcing your payroll means that your employees no longer need to waste their time on repetitive admin activities or spend time manually entering data and dealing with legacy systems. 

Instead, your team will have access to accurate data and insights for reporting, enabling them to make informed strategic decisions that boost efficiency and contribute to business growth. 

Essentially, by outsourcing your payroll to a knowledgeable third-party provider, you can ensure that your business is as productive as possible and free up your time to focus on other business-critical issues. 

4. Facilitate growth

Outsourcing your payroll is also essential if you are undergoing - or are about to undergo - a period of international expansion. 

Expanding into new territories brings with it a variety of complex challenges, with each location having its own unique laws and legislations which you must abide by - and if your expansion is going to be successful, ensuring global payroll compliance is absolutely essential.

Not only will outsourcing your payroll mean that you can benefit from expert knowledge to ensure that you avoid any mistakes, but when expanding overseas, it is also important that you can easily manage, access, and share your payroll data to ensure that you can make informed business decisions at speed. 

Having all your payroll data in one place means that you can respond quickly to any challenges or opportunities you may encounter, whilst a global, automated payroll system will also free up your time so that you can focus on your expansion plans. 

5. Win the war on talent

Finally, we all know that attracting and retaining high quality talent is paramount to business success. Partnering with a reputable payroll provider will help your organisation stand out from the competition. 

For starters, your payroll partner will know everything there is to know about the latest trends, benefits schemes, and more, helping to ensure that you appeal to the best talent. Plus, by ensuring that your employees are consistently paid accurately and on time, you can retain your talent, too. 

Additionally, if there are any errors with your payroll, they will be dealt with swiftly, which means that your employees will remain as happy and productive as possible. 

Discover how activpayroll can transform your payroll 

There’s no doubt about it: running payroll is one of the most important responsibilities of any business. 

At activpayroll, our global payroll services help business to enhance their efficiency to develop an efficient, compliant payroll system for all your business needs. 

With global payroll centralised and local payroll services spanning over 140 counties, we have years of experience providing payroll solutions in every continent, so you can rest assured that with activpayroll, you’re in safe hands. 

If you’d like to find out more about how activpayroll can transform your global payroll, contact us today to learn more.