Payroll outsourcing is an option to be carefully assessed before making a decision. Its advantages are undeniable, both in terms of financial costs and the management of internal resources, as well as the transfer of responsibility regarding the reliability of pay slips and the management of social declarations.
In order to evaluate the advantages and disadvantages of outsourcing, it is important to clearly identify its objectives in financial terms, procedures and the use of payroll data, especially for HR purposes.
The Benefits of Outsourcing Payroll
Saving Time and Adapting Costs
Managing employee pay is a complex and time-consuming activity that involves many responsibilities. With the complexity of the DSN format, many employers have seen the time spent on payroll management and social reporting explode, and the risk of error has increased. The regularization method imposed by the DSN has also upset the organization of payroll services and the penalties applied in case of delay can impact companies heavily.
According to organizations, the person in charge of payrolls is not always specialized in the management profession. Delays and imperfect control of tools and procedures can lead to a loss of credibility among employees because pay is an essential part of the employer-employee relationship.
The costs associated with training or hiring a payroll manager, but also with the purchase and maintenance of a payroll software are also to be taken into account.
Legal and Regulatory Watch
Another point not to be underestimated, the legal and regulatory watch, the correct interpretation of the texts or the application of the new calculations require a real investment on the part of the payroll manager.
Subcontracting the payroll to a specialist eliminates the need, with the guarantee of a real-time update of legal or conventional changes, to ensure compliance with the law. Legal expertise is part of the job of payroll providers and also avoids litigation with employees or the Administration.
Access to Data
Outsourcing your pay does not mean losing control of your data, on the contrary. You continue to access it in an online space, with the ability to track and extract your social indicators or edit reports. For the management of your payroll and your DSN, a dedicated manager follows your file and answers all your questions.
Another important point, maintenance and software purchases are the responsibility of the provider, which allows you to free your technical services and refocus on your core business.
How to Optimize the Outsourcing of Payroll?
The Payroll Provider, Your Preferred Contact
Since social data is sensitive by nature, it is essential to check the contractual aspects offered by the different service providers: storage and data backup, compliance with security standards, provision of a dedicated manager, access to customer service, provision of layout of an online space ... are points not to be overlooked.
During the consultations, the price comparison must integrate the entire scope of the offer: project management, specific settings, audit of the files before implementation, quality and availability of assistance, recovery of payroll data in the event of change during the year ...
Outsourcing, the opportunity to develop new HR missions
Payroll outsourcing can be an opportunity to refocus on higher value-added missions, including the analysis of data and social indicators. Business Intelligence tools applied to HR departments can process raw data, accessible in real time through AHW. The new challenge for HR is to organize and prioritize them to transform them into strategic choices for the company. They make it possible to base decisions on tangible elements, to analyze potentials, to identify weaknesses, to plan resource requirements to implement performance-based remuneration and to build future reference frameworks.