Any company with employees understands that payroll is a necessary, yet time-consuming and redundant task. However, payroll impacts every employee within the organization, whether they’re receiving pay for their work or processing the payroll for others. Thus, it is critical that HR departments get payroll right, considering it is often one of the largest expenses that companies face. As a result, many companies have begun looking for ways to improve their HR processes for greater efficiency. Rather than managing payroll in-house, companies can enjoy significant benefits by outsourcing payroll jobs to an experienced HRO instead. Let’s dive into what companies can expect when they decide to outsource to payroll processing companies instead.

What are Payroll Processing Companies?

A payroll processing company is an external third party that companies hire to manage payroll and related responsibilities like time and attendance, payroll taxes, maintaining compliance with state and federal payroll regulations, calculating wages, setting up direct deposits, and much more. While they work closely with a company’s HR department, payroll processing companies can solely focus on payroll or be a more comprehensive HR outsourcing partner that can take over many administrative responsibilities. When a company chooses to work with payroll outsourcing companies, they can expect greater efficiencies within their HR department and many other valuable outcomes.

Flexible and Adaptable Services

One option to cover any organization’s payroll needs is to hire more staff, filling the organization’s current payroll needs. However, this option offers little scalability and flexibility as an organization’s headcount changes. Rather than hiring employees to manage payroll responsibilities, outsourcing provides companies with the flexibility needed to easily scale the amount of payroll support needed as the organization’s size fluctuates. This eliminates the need to go through costly recruiting, onboarding, and training processes for new HR staff as an organization expands. Conversely, if headcount decreases, companies can scale back on HRO payroll services instead of eliminating payroll jobs.

Thus, companies can expect a more streamlined approach to adapting the level of payroll services when working with an experienced partner. By working with a payroll provider, companies can eliminate the lengthy hiring process to meet changing payroll demands within the HR department. Because the hiring process can be long, it may not provide relief for immediate changes to payroll demands. In comparison, outsourcing allows companies to quickly scale services up or down to meet sudden shifts in payroll demands.

Free Up Valuable Time

Payroll is an incredibly time-consuming task for most organizations. The average company that processes payroll bi-weekly spends 235 more hours annually on payroll-related tasks than those that outsource. Instead of hiring for payroll jobs, working with payroll outsourcing companies enables HR departments to save as many as six weeks on payroll-related tasks. With this additional time, HR staff can focus more efforts on strategic initiatives that will have greater business impacts and help drive the business forward. When payroll departments spend less time on redundant and time-consuming tasks like payroll, they can place a greater emphasis on improving employee experience, streamlining HR processes, and other priorities that deliver greater value to the entire organization.

Improve Cost Control Measures

Because payroll costs are often the highest expense that companies face, reducing the amount of time spent on payroll, increasing efficiencies within the payroll process, and ensuring compliance with regulatory requirements can help companies get better control over their HR expenses. Companies with 75 to 6,000 employees stand to benefit greatly from the cost-control measures. For example, companies that outsource payroll can save as much as $450 per employee and up to 70% on employee costs. Because of this significant value, companies can leverage, choosing to work with payroll processing companies can ensure that too much isn’t being spent on payroll and that the organization can avoid any fines or penalties for mistakes and other errors.

Improve Employee Satisfaction

When companies decide to work with payroll processing companies, the external provider often can complete payroll more accurately and efficiently than if it was being managed in-house. As a result, employees can expect fewer to no payroll errors and payroll will always be completed and paid on time. This can improve employee experience when they don’t have to worry about payroll delays or errors.

At the same time, outsourcing payroll gives HR departments the ability to focus on higher-level employee concerns, questions, or other matters that may get placed on the back burner when so much time is devoted to payroll and related tasks. This means that by outsourcing payroll, less time is taken up by the same repetitive and redundant tasks, allowing HR staff to apply their talents and expertise in more valuable scenarios.

Finding a Trusted Provider

When searching for payroll processing companies, the best options are those that offer comprehensive and flexible service and have experienced staff to ensure payroll is done accurately and compliantly. For example, look for companies that have decades of experience in providing payroll services, offer services that are flexible to each company’s unique requirements, have responsive staff, and remain up-to-date on the latest changes to payroll and other employment regulations that can impact payroll processing.

For companies with 75 to 6,000 employees, outsourcing payroll is an excellent way to ensure that payroll is efficient, accurate, and compliant without needing to fill payroll jobs. With Corban OneSource, companies can leverage streamlined and flexible payroll support services to ensure that payroll is done accurately while also removing the burden from internal HR staff. We have nearly 30 years of HR expertise that enables us to improve all aspects of your payroll processes. Corban OneSource brings expertise across payroll platforms, processes, and vendors in the market. Whether your organization relies on Paylocity, ADP Workforce now, or Workday, we are here to support you.

To learn more about how we can support your organization with our payroll services, contact our experienced team today. We’re ready to help any company with 75 to 6,000 employees streamline payroll processes with knowledgeable, US-based support.