A poll of UK employers carried out towards the end of last year revealed that there was great optimism for 2016. A significant majority of businesses were anticipating growth and to be adding to their human resources during the coming year. They did, however, sound a note of caution: namely that the time and costs associated with day-to-day administration represented a major drag on their potential for expansion. Payroll management has traditionally been carried out in-house and has been a time-consuming and expensive matter, with management and staff dedicating much of their time in ensuring that payday goes smoothly – time that could be deployed for more profitable activities. Increasingly, companies are looking to combat this drain on resources by outsourcing their payroll. Certainly, there are many advantages in using a payroll management service.

Cost Savings

The prospect of costs savings will naturally be one of the key motivations for companies electing to outsource their payroll management. The extent of any headline savings will, of course, vary from business to business, depending largely on the efficiency of their existing systems. There will, however, be collateral savings as firms avoid unexpected or variable expenses connected with their payroll. In other words, a company wouldn’t, for example, need to rush to update its technology to comply with a new government regulation: the payroll management service would facilitate the changes. As well as saving money, this can provide a degree of budgetary certainty, which can be central to any enterprise’s forward financial planning.

Time Efficiency

Another major benefit of payroll outsourcing is that it has the potential to free up management and staff resources for more strategic and profitable work, such as boosting sales, improving marketing and pushing for business development. Reducing the effective commercial downtime caused by the demands of back-office administration is a perennial concern for all businesses, and delegating payroll administration to a dedicated outside service can have a real and positive impact on a company’s growth and profitability.

Regulatory Compliance

Complying with the seemingly endless and constantly changing raft of laws and regulations affecting salaries and payrolls is hugely problematic. It is costly, takes up large amounts of staff time and usually necessitates expensive professional advice from lawyers and accountants. And it’s no exaggeration to say that the consequences of non-compliance can be devastating for a business. A payroll management service will constantly monitor new legislation to ensure that its systems accommodate every law and regulation affecting your salary, taxation and pension provision, reducing the financial and legal risk to which your firm is exposed.

Business Continuity

While payroll management is usually characterised as being an administrative process, it is anything but purely procedural for your workers. Payday is the compensation and reward for an entire week’s or month’s work, and late or incorrect payment can be an extremely serious matter, causing financial difficulties and leading inevitably to discontent and disruption. You can be confident that a payroll management service’s sophisticated methodologies are designed to guarantee payment of all personnel on the exact date and in the exact amount you specify, protecting your business continuity and staff morale.


Safeguarding your staff’s personal and financial data is ethically, legally and commercially critical. A payroll management service will have advanced and robust systems in place to ensure that the integrity and confidentiality of your firm’s payment arrangements are protected at all times, reducing the risk to your organisation of damaging breaches of data protection and other laws.