Should You Outsource Your Payroll in Europe?

Adm In ME
Adm In ME
Aug 9, 2017 · 2 min read

Today, the myth that “outsourcing the payroll is expensive and does not bring any benefit” is destroyed by the many of advantages offered by administration and payroll outsourcing, if it is chosen correctly.

First of all, regardless of the type or the size of your business, a company specialized in payroll will provide you the services according to your requirements.Generally, small companies usually outsource the payroll to better manage the workforce and because of technical or human error risk mitigation. Bigger companies need, complementary to payroll, a HR administration tool or a time & attendance one that could be easily integrated in the payroll process. But there is no rule for that: every company has its own requirements and it is the payroll company that has to harmonize its services to the client’s needs.

Secondly, in a business, there are two factors that are changing so fast that it is almost impossible to follow up with: the legislation (particularly concerning labor law and collective agreements) and the technology. European countries are notorious for their specific Labor Law and payroll regulations (from federal, to state and local), so if you are operating your business in more countries, the risk that your payroll is not updated to that specific regulation could increase proportionally to your business expansion.

As about technology, more and more employers and HR managers expect a fully digitalized payroll, so they can have access to the employee’s reports, payslips and other personal documentation. And just like everything else that is digitalized you have to consider one key element: security.

When you look for a payroll provider, pay attention to the security policy or to who can access what. All the data are sensitive data: names, email addresses, social security bank account numbers. Each individual’s access to data must be restricted to a specific document type, a specific group of users and a specific time frame.

Thirdly, payrolling is not just about running numbers. Another reason why you should consider to outsource your company’s payroll is the expertise. There are specialists who have a professional and consistent approach to payroll management, who make sure that the legislation is respected and at the end of the month the reports are done, no matter the way you send them the information.

Finally, if you want to remain competitive in a fast changing business environment that does not wait for you to adapt to the new changes, then there is no solution but to outsource your payroll. Aside from the time and money saving, your information and all your administrative process will be kept up with the law.

Still not convinced you should outsource your European payroll?

Adm In ME

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Adm In ME

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