Payroll outsourcing service is popular these days. Still, lots of people get the wrong ideas about the nature of this service. So here we are with the 4 most common myths that you should dispel.
Nearly 10 years in the Vietnam market, we’ve been working with thousands of clients who are looking for stress-free payroll solutions. Some of them just take the first step in the outsourcing area. And for a bunch of times, in initial discussions, they asked us about something they “heard others said” or “I thought you work that way?”.
Of course, we’re always willing to explain everything in great detail. But as the myths surrounding payroll outsourcing service are too popular out there, it’s time to set the record straight.
Ready? Let’s bust those widely held myths about payroll outsourcing service:
Myth #1: Payroll outsourcing incurs the risk of security
Outsourcing means allow external partners to access your people's personal information, so it’s reasonable that many employers have trust issues here.
But in-house payroll might not as safe as you thought. One day, people who manage payroll might leak some pieces of sensitive information. And if you’re not equipped with leading-edge technology, your business is a sitting target for cybercrimes.
With a qualified payroll provider, things are different. A crucial part of their job is protecting you from cyber threats, and any slips in data violation can ruin their reputation. No providers want to take this risk. So, it’s a must for them to invest in high-tech payroll solutions. Striving to do the same thing internally will cost you a fortune, which not a good move to save costs amid COVID-19 situations.
Myth #2: Payroll providers offer limited solutions
This misconception is far more commonplace than you might think, especially for the new kids on the block. Let’s say, some businesses want to pay their employees bi-weekly, and they naturally assume that outsourcing providers only do monthly payroll.
The truth? Far from it.
A competent payroll provider never goes with only “one-size-fits-all” solutions. They grid themselves for unique requirements from each client. Initially, they’ll dig deep to paint a full picture of your needs. Then comes customized solutions that ensure consistent, timely, and accurate processes. Plus, payroll providers can quickly scale up – or down – following the shift of your personnel.
Myth #3: Payroll outsourcing is more costly than in-house
On the contrary. Take another look, you’ll see in-house payroll comes with a long list of internal resources such as:
- Technology and software that require regular upgrade;
- Facilities such as laptops, printers, office space, etc.;
- IT support with technical issues;
- All-out efforts to keep up with the constant changes in law and regulations;
- Turnover cost, which can be 20% of the employee’s annual salary;
- Hiring and training cost;
- The compensation package for payroll staff.
Does it look competitive to you?
Now you see, outsourcing payroll – or any non-profit generating functions – will save expenses for the long haul. The only condition is looking for the right one!
Myth #4: Outsourcing will take over from the in-house staff
The bullet points above might make you think of outsourcing as a low-price alternative for internal staff. Well, we can’t say you’re all wrong.
But FYI, many firms prefer the combination of both in-house and outsourced teams. Why? Because they can get the best of both worlds!
On one hand, business owners no longer worry about miscalculations, late payments, regulatory changes, and payroll audits. Simply put, they find peace of mind.
What’s more, your staff will be free from the burden of repetitive and manual paper works. Then they can promptly respond to the team inquiries and keep your employee satisfaction high – at least when speaking of paychecks. Plus, they can oversee the partnership with the provider. And you can rest assured that everything is on track.
So, you decide!
Payroll outsourcing is a lifeboat, not a hardship
Oops, this is not a myth! It’s just exactly!
You can always benefit from payroll services, less or more - depends on the scope you outsource. If you’re still hesitant, just see all these great paybacks from the payroll service. And if you just realize it’s time to change your tack, fill in the form below. We’ll get back shortly with your tailor-made magic wand!