Understanding the true cost of payroll can make a huge difference to the real cost of back office activities.
Payroll is a back office task that is often overlooked by employers. It’s a task that has to be done and it gets done but the process itself is rarely revisited and evaluated.
The cost of payroll is increasing as multinational companies globalize. Benchmarking has become a proven process to determine the costs of payroll and efficiencies of the payroll process. Employers are often surprised at how much payroll is really costing them. A good benchmarking process will help organizations bring to light some of the issues and inefficiencies within their payroll process. For example if your error rates are high, the root cause might show it resulting from manual time sheets entered in incorrectly due to key strokes or illegible writing.
Benchmarking can also help organisations determine how they are doing compared to the industry standard or other companies within the same sector. Technology and managed payroll services have provided companies an opportunity to streamline many different areas of the business – one being payroll. However, many employers and owners still feel that in-house processing is the way to go and it may well be, but by benchmarking the process it will provide a high level view of how well you are performing compared to other companies of the same size.
For companies who have determined high error rates and inefficiencies, it’s never too late to make changes and improve the process. Paycheck Plus is an award winning company that helps many large organisations with their payroll management. Download our guide to 6 reasons why companies need to consider outsourcing or feel free to contact us to discuss your payroll management and see if you can benefit from outsourcing your payroll.