In a 2017 survey, Ernest and Young found that 65% of a company’s HR functions can be automated, and this includes payroll functions.
One of the main things that should motivate you to automate your HR functions is the guarantee of cost savings. Repetitive tasks are the culprit in this case, as these can waste up to 93% of your HR team’s time. Getting payroll companies to supply and manage software that deals with these repetitive tasks means more time is spent on the important stuff. This will ultimately save you money – up to 65% to be exact.
Another benefit is the consolidation of all employee information on a human resource information system (HRIS) based in the cloud, from remuneration to on-boarding and performance management. Payroll service providers such as Affinity give key stakeholders within the company the ability to generate reports on these and more as needed.
But what is the exact cost of payroll, you ask?
This cost depends on a number of factors, but in general, companies with more than 200 employees usually spend an average of $16.38 per pay-slip. The higher the number of employees a company has, the higher the cost to the company.
This figure is derived from a study conducted by the Australian Payroll Association in 2016. The study also revealed that companies that improved their processes, payroll team and technology could reduce the amount mentioned above by 42%.
Another major benefit of payroll outsourcing is reduced cost as a result of managing a mainframe system. Such changes should, however, be made based on a number of factors, such as the size of a company and the number of organisational processes being outsourced.
Affinity assists in cost reduction for companies through daily reporting of actual labour costs. This way, companies can tell how their actual labour costs compare with their budgeted labour costs, and this in turn helps when making the necessary adjustments.
Affinity offers customizable payroll services for a variety of companies, regardless of size.