Finding the right payroll outsourcing organisation may be difficult. Here are 8 tips to help you in your search for the perfect fit!
According to the Payroll Outsourcing Services Market by Product, Application, and Geography – Forecast and Analysis 2021-2025, the payroll outsourcing market is on a roll, with an expected growth of USD 6.75 billion, at a compound annual growth rate of 5.72%. This optimistic trend leaves ample room on the market for new players.
It might, however, leave you perplexed when it comes to choosing a service provider for your specific needs. Especially given that payroll outsourcing represents a major investment in a firm’s expansion journey. What, then, are the qualities you should look for when considering whom you will entrust this key function?
One of the main markers of expertise in a professional payroll organisation is their technological proficiency. Indeed, high-flying payroll organisations will, above and beyond providing you with the competence of their qualified staff, develop optimal processes for your company’s benefit. From employee self-service portals to cloud-based payroll platforms, to store and process data, the right organisation will help you access these essential tools for seamless payroll which would, otherwise, be out of reach, while making the best use of all the features they offer.
A huge task, perhaps the most consuming, in payroll administration is to monitor compliance. Conducting business in Africa means keeping up with a host of ever-changing tax legislations, deductions, levies, and deadlines. The right payroll outsourcing organisation will make this daunting task a breeze, thanks to their experts who keep up with local laws, but also thanks to their swift and efficient processes that never skip a beat.
It’s no secret that timely pay is a major asset for talent retention. The right payroll organisation will put its attributes of professionalism, technology and organisation to ensure your success by setting up efficient processes to run payroll accurately and in a timely manner.
Why look for a new payroll provider in every African country on your expansion map? It is costly, time consuming, and worst of all, opens the door to many preventable errors due to lack of standardised and uniform processes. This is why the right African payroll service provider will be able to accompany you in every country of operation.
Therefore, when choosing your partner, planning is important. Make sure that your vision is broad enough on the short, medium and long-term to contract with the right service provider straight away, saving you tremendous resources rather than having to switch payroll service providers along your way.
You are probably aware that payroll data constitutes highly sensitive information for different reasons. First, there is the duty to protect your employees’ personal information in accordance with the Data Protection laws of each country of operation. The right payroll organisation will be transparent about their data protection policies and present you with a Data Processing Agreement that will guarantee that they are up to legal standards.
Secondly, with technological advances and cloud-based information systems also come the risk of cyberattacks that could hold your data hostage. Top-tier professional payroll organisations have access to the best resources to protect data from such risks.
The right payroll service provider should make your life easier, rather than harder. As such, their service should be comprehensive enough to cover payments to both, employees and independent contractors. They should also be able to assist you with employee classification. This crucial part of payroll, done right, is the key to fruitful collaborations and cost effectiveness. Done wrong, it will cost you by way of damages in fines, and reputation.
Investing in payroll outsourcing should also come with great customer experience, so what are the additional advantages you are getting when choosing one provider over the other? Do they offer tailor-made reports? Do they handle employee queries about benefits? Do they assist in calculating and paying compensation and assist you in the dismissal process to minimise the risk of lawsuits?
While choosing a payroll organisation is already a great start, you may also compare their other services and their value, to choose the best option for your particular needs. Perhaps outsourcing your entire HR needs through an EOR or PEO would give you an even better deal than just delegating payroll. Or perhaps this option will turn out to be useful further down the road. Either way, finding a single provider who gives you all of these services is the key to keeping your options open.
With our 12 years of experience as a payroll service provider and a reputable Employer of Record organization, we, at Africa HR Solutions, can provide your company with a commendable service to ensure your operations are carried out in the most compliant way possible during your expansion in Africa. If you need help paying your employees across the African continent, contact us now and find out more about our team of experts.