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Payroll outsourcing: 4 tips on which tasks to outsource

Contrary to what some think, payroll outsourcing is not a take-it-or-leave-it concept. You decide which tasks you’d rather lay in the hands of a third party and which ones you keep in-house. Therefore, every outsourcing project starts by determining the scope. To help you with that exercise, we’ve listed some pro tips.


#1 If you take satisfaction from it, keep it

Payroll outsourcing isn’t just meant to lighten the workload, it can also boost happiness at work. Two birds with one stone, so to speak. This implies outsourcing the payroll duties that are most dreaded in your HR department. For example, many payroll officers would rather be answering questions from colleagues than inputting data on absences and performance. There’s only one way of knowing: ask around in your team. Discover more pros (and cons) of payroll outsourcing.


#2 Hand over the repetitive, time-consuming and technical tasks

This is strongly linked to the previous tip, but goes a bit further. An experienced payroll partner can often execute manual tasks much more efficiently, saving you many hours each month. Proven innovative tools, systems and processes as well as a fresh perspective on your payroll process can work miracles when you’re overwhelmed. Indeed, outsourcing and optimisation go hand in hand, so make a list of payroll tasks that could well do with a more methodical or technological way of working.


#3 Always think ahead

Think about the upcoming years. Will your current payroll officers remain in the same capacity, or will they move on in your organisation? Remember: attracting and retaining the right payroll expertise isn’t a walk in the park these days. In other words, have a plan B ready or outsource those tasks that are most likely to cause problems in case someone leaves the team. By being proactive, you’ll save yourself the trouble of having to take quick – and maybe ill-considered – choices.


#4 Don’t lose sleep over it

Exactly, you shouldn’t worry too much about which payroll tasks to outsource and which not: your initial selection isn’t set in stone. For example, it’s perfectly possible to start out by outsourcing the calculation of holiday allowances or the input of time and attendance, and to hand over more tasks as your confidence in payroll outsourcing grows. In most outsourcing formulas, you’re free to negotiate your own terms (to some extent). What is worth extensive research, however, is the type of payroll outsourcing you choose.