Why outsource your payroll?
Outsourcing has gotten a bad rap in recent years. It’s no wonder that most of us have been directly affected. Many of our commercial banks use outsourced overseas call centers, which are often the cause of much frustration for customers. Or maybe you had to speak to one when your PC crashed and you called the manufacturer’s technical support line for help.
Talking to overseas call centers isn’t the only reason outsourcing gets so much bad press. Countless employees in the UK lose their jobs due to overseas-based outsourcing companies every year. The IT industry is an excellent example of this because the ability to work remotely on a network is now very easy. Corporations are looking to cut costs wherever possible and the UK IT workforce is often the primary target.
However, the need to optimize your business is essential to remain competitive. This is more important than ever considering the current economic climate. The harsh truth is that it is better to downsize some of your staff to maintain the financial stability of the company and its remaining employees, rather than risk the demise of the entire company. Cost reduction through outsourcing is inevitable.
Call centers and IT support are not the only areas in which outsourcing can reduce operating costs. Company payroll is another area where savings can be significant. The ongoing financial commitment of running an in-house payroll department can often run into the tens of thousands of pounds a year. Employing experienced payroll personnel is the obvious and most significant cost. But the costs associated with configuring and supporting the payroll infrastructure on an ongoing basis can add up as well. Software licenses and support agreements alone can cost thousands of pounds a year. For a small or medium-sized business, this amount of financial commitment could represent a significant portion of operating costs.
At this point, outsourcing begins to become a serious alternative. One that could turn the company’s accounts from red to black. Nor is it necessary to go abroad to benefit from outsourcing. There are many established payroll outsourcing companies operating in the UK. These are generally known as payroll offices. Finding one that suits your business is critical. Most offer a fully managed payroll service. This means you receive all the benefits of an in-house payroll department at a fraction of the cost. A large payroll office can handle clients that may have more than 10,000 employees. However, they can also accept clients with only 200 employees.
Very often, smaller clients receive inferior service as the payroll office allocates its resources to its main clients. This is certainly not intentional mistreatment of smaller clients, but rather an unfortunate circumstance where a large client’s payroll can take so long to process.
Firefly provides payroll services to small and medium-sized businesses for this reason alone. His consultants had worked with the big players in payroll providers. They gained extensive payroll management experience from over 10,000 employees. It was from here that the frustrations of the smaller customers became apparent. Smaller clients were not receiving the same level of service that larger clients were enjoying. This is despite paying a higher fee per pay slip. Firefly believes that customer focus is essential regardless of the size of the customer.
You don’t have to be a corporate behemoth to benefit from your payroll outsourcing. Firefly offers its services to any company with between 1 and 2000 employees. Depending on the size of your payroll, the potential to reduce your operating costs could be as much as 80%. This could make the difference between swimming and sinking in your business.