TECHNOLOGY
Payroll: in-house v as a service
Payroll teams come inmany shapes and sizes but a key distinction splits them into two camps: in-house and outsourced. Jerome Smail, business journalist, presents the views of industry luminaries
T here are many reasons why an employer might favour an internal team handling the payroll rather than a bureau – and vice versa. But what are the key considerations as well as the advantages and disadvantages of each route? And what are the professional considerations for the payroll workers in either camp? To find out, I asked some notable members of the industry on both sides of the fence: ● Andi Herrington MCIPPdip , director of payroll services at Wallis Payroll Ltd ● Christina Holloway , payroll services director at Moorepay ● Jackline Ogara MCIPPdip , payroll manager at River Island.
What are the pros and cons for organisations to weigh when deciding whether to outsource the payroll function or to keep/ bring it in-house? Andi Herrington: Being an outsourced provider you might expect me to be all in favour of outsourcing payrolls. However, there are benefits to both bringing a payroll in-house and outsourcing, so each business needs to look at it on a case-by- case basis – just because it is right for the employer next door does not mean it is right for your employer. We see businesses outsourcing for several reasons but for those medium- size businesses the primary reason is knowledge and that they want to draw
on our skills and experience instead of having to train someone in-house. I do see businesses wanting to outsource payroll to reduce in-house headcount. However, for many employers there is still a requirement to have their own knowledge – it is still the employer’s responsibility to ensure that the payroll is processed correctly. Unfortunately, I do think that payroll outsourcing is often commissioned within a business by those who do not entirely understand what payroll actually entails. Too often, I see a business going into the provider-change or transferring from in-house/outsourced without fully project- managing the transfer. No matter the choice of the business, the transfer must be managed properly – otherwise you will not get the best possible outcome. One of the big reasons that I see businesses outsourcing their payroll is to free-up time for their current resources. We have had employers with seventy
...often commissioned within a business by those who do not entirely understand what payroll actually entails.
| Professional in Payroll, Pensions and Reward | July / August 2021 | Issue 72 40
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