With recent economic difficulties affecting businesses of all sizes across the UK, everyone is looking for ways to save money. If you currently run a business within the UK, there is no doubt that you have had to make some decisions to trim costs and keep your head above water. One area where many companies are cutting costs is by outsourcing their payroll function to a specialist payroll bureau.
There is a wealth of benefits when choosing to utilise outsourced payroll services – so it is little wonder that more businesses are making the switch. If you want to cut costs but still maintain a high level of service, then outsourcing your payroll to a bureau is the smart choice.
Let’s take a closer look at some cost-cutting benefits of working with a specialist outsourced service provider:
– According to research by Statista, the global market size for business process outsourcing (BPO) was valued at $191 billion in 2019, and is projected to grow to $296 billion by the end of 2023.
– According to the same research, the customer service and support function is the most commonly desired outsourced business process, which is one of the key areas Qualitas prides itself on with all payroll clients.
– According to a report by Deloitte, in 2021, the most important factors driving outsourcing decisions were cost savings and access to specialized expertise and technology, so here’s a brief rundown of what some of the main benefits of outsourcing an internal business function like payroll can provide.
Benefits of outsourcing an internal business function
– Cost savings: Outsourcing can be an effective way to reduce costs, as it allows businesses to take advantage of lower staffing costs, and, outsourcing certain functions to specialized agencies can bring in economies of scale that would not be feasible otherwise. For internal payroll departments, these savings can span things like software licenses, printing and postage of payslips and documents, as well as training and upskilling staff to keep up with legislation changes.
– Access to specialized expertise: Outsourcing can provide businesses with access to specialized expertise and skills that may not be available in-house. This can include advanced technical skills, knowledge of industry best practices, and specialized software and closer relationships with the likes of HMRC, and a better understanding of how the wider payroll and taxation process works.
– Improved efficiency and effectiveness: Outsourcing can also lead to improved efficiency and effectiveness, as it allows businesses to focus on their core competencies while outsourcing non-core functions to specialized agencies. For accountancy firms, payroll is one of the few aspects of client servicing which can be heavily labour intensive without being as profitable as other core competencies. Agencies like Qualitas will have better resources, processes, and knowledge to work on the outsourced task, hence can bring more efficiency to the function.
No matter what size your business or stage of growth you are at, we are certain that you’ll benefit from outsourcing your payroll function.