Any organization with employees understands the burdensome, yet essential, task of managing payroll. Especially as an organization grows and headcount increases, the amount of time it takes to manage payroll can grow exponentially. For most organizations, payroll is the largest expense, so ensuring payroll is complete accurately and on time means that employees are paid correctly and the business pays all required payroll taxes. Often, this means that a payroll manager spends more time focused on routine, administrative tasks, leaving them little time to focus on more strategic initiatives. Thus, many organizations find great value in outsourcing their payroll functions.

Payroll Manager
According to ADP, companies that manage biweekly payroll processing in-house spend an average of 235 hours more on payroll-related tasks when compared to companies that outsource. By outsourcing your payroll manager, HR departments can save as much as six weeks on these repetitive tasks that can be focused elsewhere.

Unlike an internal payroll manager, outsourcing this role provides greater flexibility to scale up or down with headcount and demand for HR services. As a company grows, so does the amount of reporting and compliance needed. If companies are managing HR internally, this often means that they will need to hire more payroll specialists to keep up or risk spreading the payroll manager too thin. Conversely, if the organization’s headcount was to decrease, reducing the number of HR employees may also be required. By outsourcing this responsibility, a good HR outsourcer should be able to easily scale services up or down depending on what the client needs.

Outsourcing payroll is also a great strategy for companies with 75 to 6,000 employees to control related costs. On average, companies that outsource payroll can save as much as $450 per employee and up to 70% on employee costs. This is also a useful way for companies to access the payroll expertise they need without going through the costly process of recruiting and hiring a senior payroll specialist. Beyond employee costs, outsourcing payroll to an experienced HRO ensures that everything is being done accurately and compliantly, reducing the risk of potential fines and other penalties for non-compliance.

Companies can also improve the technologies they use in the HR departments when they choose to outsource payroll to an HRO. A good HRO should be equipped with the knowledge to recommend an HRIS that can meet all payroll processing needs. And, by choosing a good technology platform, companies can improve data security and keep sensitive payroll information away from prying eyes. Choosing the right technology can also help companies analyze payroll and other HR data that can inform business decisions, integrate payroll with other tools, and automate some payroll processes.

When companies with 75 to 6,000 employees turn to an experienced HRO as their payroll manager, they can relieve their HR departments from the burden of redundant and time-consuming payroll responsibilities. As a result, HR staff are free to focus on strategic priorities that will drive the business forward while also ensuring that payroll is being taken care of by a reliable and experienced partner.

Companies relying on an HRO like Corban OneSource can rest assured knowing that we have nearly three decades of experience providing payroll administration services. Outsourcing to Corban OneSource means that you’ll have one point of contact to streamline communication and get timely assistance, but we have multiple backups on standby to ensure we’re always able to provide assistance and support.

If you’re ready to learn more about how Corban OneSource can help you effectively manage your payroll, contact us today to learn more.