It is easy to imagine small business owners outsourcing payroll services. After all, they won’t need a full time staff member for payroll considering the number of employees they have. They have relied on payroll companies to do the job over the years and it has been pretty effective. The more surprising trend though is how big companies also do the same thing. They have now started outsourcing payroll services. For a huge company that can afford hiring full time payroll employees, this is quite a surprise. There are a lot of reasons why these big companies are also moving in this direction.
Even though big companies earn high income, they also have a lot of expenses. Thus, they find ways to cut back on these expenses whenever possible. Most of these companies have realized that they don’t need to hire a full time employee to do certain jobs. Even if they have a lot of employees, outsourcing payroll services is still a lot cheaper. Payroll firms offering the service have affordable rates especially for those who have a lot of employees.
The good thing about outsourcing this service is that you only need to pay on a project basis. Once the project is done, you have to pay them for their service and that’s it. Hiring a full time employee on the other hand is a lot more complicated. You need to pay this person a monthly salary. You also have to include benefits and bonuses. For a huge company, this means hiring at least 3 payroll officers or even an entire department. It takes a huge group to do the job. The only catch is that they only have to do it for a few days each month. This means that you are paying each payroll officer for a month but the job is only worth a few days or weeks.
Considering the cost of hiring a full time employee, most big companies would rather outsource this service from a payroll company.
This is one more reason for hiring a payroll company. They have well-trained staff. They are thoroughly vetted. They are individuals who have lots of experience. They also have a pool of employees who can work on huge tasks. Even if one of them fails, the company can easily reassign the job to another worker. This makes you feel more confident that if you hire them to do the job, they can do it right away.
Whether you are running a small business or a huge company, it pays to take a closer look at outsourcing payroll services. It might work for you.
Image via freedigitalphotos.net (Stuart Miles)