COMPLIANCE
Going beyond transactional payroll outsourcing: embracing the future
Ned Mcevoy, head of payroll and business process outsourcing and Matthew Harper, business process outsourcing (BPO) manager, Veritas Prime , discuss how payroll providers should be going above and beyond
W hile outsourced payroll services are a longstanding practice, it’s worth examining how the BPO model has evolved over the past three decades. Systems and regulations continuously change, but beyond these dynamics, has payroll outsourcing fundamentally transformed? The conventional perception of outsourced payroll often involves an office teeming with data entry personnel meticulously inputting new starter declarations, court orders and, in some cases, even timesheets and expenses. This laborious data input is then painstakingly scrutinized and validated for accuracy. Subsequently, reports are dispatched to the client for approval before payroll is processed through Bacs and real-time information (RTI) is submitted. Even the description of this process appears clunky, prompting us to question whether this model is still relevant. Can it be enhanced, and how can outsourced payroll providers add substantial value beyond these transactional operations? In the past, BPO partners primarily delivered services in this manner. However, with the advent of payroll self-service, fully integrated human resource / payroll solutions and workflow automation, the landscape of payroll and payroll technology has evolved significantly. It’s high time that outsourcing services catch up with the technological advancements. With all this cutting-edge technology at our disposal, why is data entry still predominantly manual? Shouldn’t we allocate our time more strategically instead of redundantly inputting and cross-checking data? Many of us who have engaged an outsourced payroll provider can relate to the frustrating ‘who caused the error?’ disputes which often arise in the aftermath of an issue. Too often, precious time is
“While the customer ultimately holds the final sign-off and approval, it falls on payroll providers to ensure they have timely access to the pertinent information for informed decision-making”
squandered on attributing blame rather than implementing preventive measures. The experience of an outsourced provider can undoubtedly contribute to ensuring such mishaps don’t recur, thereby elevating the quality of your payroll and ensuring employees are paid accurately and punctually. Payroll horror stories of overpayments, underpayments or even non-payments are all too familiar. While the customer ultimately holds the final sign-off and approval, it falls on payroll providers to ensure they have timely access to the pertinent information for informed decision-making. Gone are the days of receiving an overwhelming reporting pack and sifting through it like a needle in a haystack for errors. Providers should proactively present key data to facilitate timely, informed decisions.
service. This shouldn’t be limited to new customers; all improvements should benefit existing clients as well. Why not let your provider review your payroll processes, identify error-prone areas and offer guidance to prevent recurrence? Providers can add substantial value by striving for error-free payroll. Why not allow your provider to seamlessly integrate with your business to foster best practices in payroll? Consider that even advanced users of Excel typically use only a fraction of its capabilities. Similarly, top-tier payroll systems are continually evolving, with offerings such as earned wage access, continuous payroll and real- time reporting. As this technology expands, it’s crucial to have an outsourcing partner that can support your business in adopting these advancements effectively. Technology can be a powerful enabler for payroll, providing meaningful data when needed and facilitating better decision- making and employee service. This is where a BPO partner can help you harness the available technology to serve your company’s unique needs. Ultimately, the next generation of payroll outsourcing must transcend mere transactional support to become a trusted payroll partner — an invaluable resource for advice, guidance and support when needed. This is the direction the industry is heading in, and providers must keep up to ensure they’re offering the best payroll service possible. n
The next generation of BPO What does the next generation of payroll outsourcing entail? With automation and technology advancements, it’s imperative that your provider consistently innovates and seeks novel processes to offer the best
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| Professional in Payroll, Pensions and Reward |
Issue 95 | November 2023
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