An outsourced payroll service is often promoted as an ideal solution for businesses of all sizes. And it’s certainly a tempting proposition. The world of payroll is so complex, you might think it’s better to leave everything in the hands of an expert, whether that’s a full-service payroll provider or simply a clever piece of payroll software.
Of course, there are many benefits to putting your trust in experts and tech. Minimising payroll errors and saving your HR team time is just the beginning. The right outsourced payroll providers should offer much more than operational efficiency and adherence to payroll rules and regulations.
External support enables you to take the essential step of proactively making payroll more sophisticated. That means embracing a variety of contract types and reward options that meet the rapidly growing demand for flexible work across industries. At many organisations, that trust doesn’t come easily, though. Hesitation around payroll outsourcing often stems from fear of losing control and visibility of payroll processes. That comes with the risk of not being able to intervene quickly if something goes wrong. And what if hidden charges arise in those urgent situations?
"The world of work is constantly evolving, and finding an external payroll partner can help you proactively manage complex payroll demands. This includes adapting to new contract types, offering more flexible working options, and meeting the growing demands of European legislation. Additionally, the pressures to attract and retain top talent in Ireland’s tight labour market require a more imaginative approach to reward option"
-Eimear Byrne, Ireland Country Leader
On March 7th, 2024, the Workplace Relations Commission (WRC) introduced a new Code of Practice, granting employees the right to request flexible working arrangements for parents and carers. Employee demand for flexible working options marks a shift for businesses, necessitating a reassessment of internal processes to align with modern workforce needs. Businesses must adapt to these changes to maintain compliance and effectively manage the more flexible employment and payroll structures.
Related Article: Navigating Payroll Compliance
Keeping payroll entirely in-house offers the benefits of closer control and greater flexibility. Internal payroll managers can customise the process to suit their own preferences while providing a tailored service to employees. It can also be easier to make changes at speed, whether that’s fixing an incorrect pay slip or implementing new payment policies. Perhaps most importantly, managing payroll internally enables you to build a store of expertise that grows with your business over the long-term. When you create career paths for payroll experts, you’re also investing in employee experience.
Related Article: What Should I Look for When Choosing a Payroll System?
Our research shows that 93% of Irish businesses manage payroll internally to some extent. However, just 64% of Irish employers believe there is enough internal experience on the team to sufficiently manage payroll independently.
When we look at larger organisations with over 2,500 employees, this number rises to 71%. If growth is on the agenda, it clearly becomes more important to develop payroll expertise inhouse—then you’ve got the ability to take direct control of payroll quickly, whenever you need it. It’s therefore not surprising that most European employers choose a mix of in-house and outsourced payroll handling. It’s all about finding a balance between the two that meets the unique needs of your business, and not being afraid to adjust that balance. The right payroll outsourcing partner shouldn’t be taking all the work out of your hands or leaving you out of the loop. Instead, they should be working with your team side-by-side, sharing knowledge and empowering them to develop their own payroll expertise
