4 September 2013
HR Outsourcing
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Payroll Outsourcing Best Practices – 2: Steps to Take While Outsourcing Payroll

Transition of payroll processes to a third party vendor is an important phase of outsourcing. There are many things you need to take care of during the transition process and your outsourcing partner may even act as a payroll outsourcing guide.

In our previous article we discussed about steps to take before outsourcing payroll as a part 1 of payroll outsourcing best practices.

Organizations today outsource their payroll functions to payroll companies for minimizing their expenses and availing expert services for one of the most critical functions in an enterprise. Transition, however is an important phase, and once you have decided to outsource your payroll process to a vendor, there are certain things you should bear in mind.

Payroll outsourcing best practices can help you ease out the transition process.

Payroll Best Practices

Below mentioned are a few points that will help you make the transition successful:

  • You should not entirely dissolve your payroll department. Depending on the size of your organization, you should always have at least a couple of executives that are able to understand the payroll laws, keep an accuracy check and know how the calculations work.
  • As a payroll outsourcing best practice there should be a clear and defined split of responsibilities between your internal payroll team and the outsourcing partner, as this will help ensure a successful transition.
  • Your outsourcing partner is an expert in the processes related to payroll, scaling and has immense knowledge about the processes based on their previous experiences. Hence, your vendor can act as a payroll outsourcing guide for successful transition.
  • Communication is a payroll outsourcing best practice that organizations should follow. Keeping your communication channels always open, for both your employees and your outsourcing partner, is very important. This eliminates any chances of miscommunication and misunderstanding, making the transition smooth.
  • One other important payroll outsourcing best practice is ‘change management’. Your employees should be made clear of what processes are to remain in-house, what are to be outsourced and what will be the changes in their responsibilities. This helps them stay prepared for the changes when the transition is taking place.
  • For the functions that remain with your in-house department, your employees should be provided with the necessary skills and training if required.

On a concluding note, organizations should understand that the fundamental truth about payroll outsourcing, is that, it is a partnership. This means that both parties are in it together which makes it important to have an open and progressing partnership.

We, at Rishabh BPO, can help you attain your goal by being an efficient partner in your payroll processes. For more information on our payroll outsourcing services, you can talk to our experts at 1-877-RISHABH (1-877-747-4224) or fill in the contact form.

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