There are plenty of reasons why outsourcing payroll strategies can be hugely beneficial to your company. Typically, it is the financial arguments that are used, not the emotional ones. However, there are many ways in which outsourcing your payroll can improve the wellbeing of your employees and can restore their work-life balance.
It’s well known that happier employees are much more likely to commit themselves fully whilst at work, bringing increased employee retention rates. Yet, many employers don’t realise that changing your payroll strategy can have an incredibly positive effect on the happiness of your employees. Here’s five reasons why:
1. Reduced workload
If your team is overworked and understaffed, an outsourced payroll strategy is the perfect way to get things back on track. An outsourced payroll strategy takes away the need to recruit and train an additional team member, and can dramatically reduce the workload of your staff much more quickly than getting a new member of staff.
Reducing this workload will make your employees instantly happier as the amount of potential overtime required will fall. Working fewer extra hours will allow employees to improve their work-life balance and will free up time for them to do the things they really love outside of work.
2. Reassuring the workforce
Payroll duties are sometimes given to members of staff who already have packed schedules with their own duties and responsibilities, which can lead to an anxious workforce.
Some employees may also feel concerned about other staff members having full access to their salary details. Moreover, relying on an over-tasked employee to process payroll can create tension for employees who expect to be paid accurately and on time each month.
By outsourcing payroll, an impartial person has access to salary details, which will eliminate any personal tensions surrounding payroll. Knowing that an outside specialist has sole responsibility will also reassure employees that their payroll matters are being taken care of, leading to a more relaxed workforce, a better work-life balance, and a better company culture.
3. No delays
Internal payroll managers are subject to the same demands on their time as everyone else in your company. If a company is going through a busy period where everybody’s help is required to solve an urgent issue or meet an external deadline, those members of your team responsible for payroll are no exception to this.
By outsourcing your payroll to specialist company, you hand over a big responsibility that would require lots of time, money and pressure on payroll employees. The payroll process becomes the outsourcing company’s top priority, so the internal team can focus on other tasks. There are few things which disgruntle an employee more than delayed pay, so offer your employees guaranteed on time payment by using an outsourcing partner to handle your payroll.
4. Lifting the pressure
Managing payroll is a huge responsibility, since you are personally responsible for the livelihoods of everyone in the company, many of which will be close personal friends and colleagues. This can put a lot of moral burden on an employee.
Outsourcing your payroll removes the personal element, as the person making sure that everybody is paid each month won’t individually know the people whom they are paying. Taking this emotional burden away from one of the members of your staff will relieve them of a huge weight, meaning that they are less likely to have to put in long hours to get the payroll sorted in time and will be able to regain a much better work-life balance.
5. Lead by example
Making a positive action such as changing the way you run your payroll will have a trickle-down effect throughout the business. Firstly, it will show employees that their payroll is an essential part of the business, and will lead the way for other changes in different areas and departments.
Many workplaces suffer by not adapting their strategies as the business grows and develops. Outsourcing your payroll strategy is a great example to show your teams of how to be proactive about making changes for the better that will set the business up well for its next phase. You’ll be amazed at how influential such a decision can be, and how large an impact it can have on the mindset of your workers.