Ever heard of non-core functions?
Non-core function is a term widely used in the corporate world, especially by business consultants who are always found advising for outsourcing them.
Every task performed in an office that neither involves any profit earning nor helps make your business strategically different from your competitors is called a non-core function. However, this does not mean that non-core functions are not essential and businesses can do without carrying out those tasks. Many important tasks, such as those performed at the back office or administrative tasks come under the category of non-core functions. One of the best examples of a non-core function is ‘payroll generation’.
Despite the fact that outsourcing of payroll has been advised by business experts, analysts, and consultants since a long time, a lot of people still ask whether it is an effort worth making. This is because although there are many HR payroll outsourcing solutions available these days, finding a service that is efficient and reliable requires a lot of research. Even when you have found a service provider that you can trust with your employees’ payroll generation, the process of transitioning the whole work to them takes a lot of time.
If you are also a business owner who’s having difficulty in making a decision, stop worrying because we have got you covered.
Following are some major reasons that propel employers to outsource this laborious and highly technical task:
To Not Worry about Complex Calculations and Rules
From the rules regarding minimum wage, tax deductions, policies regarding leaves and various employee benefit programs to provident fund calculation, there is a lot to do when it comes to processing salaries, paying compensations, or dealing with reimbursements.
To make sure the complex processes are smoothly carried out, one needs to be proficient and well-versed in all the complex calculations and the rules governing the payroll and tax policies. So, outsource the task to the pros and stay free from all the confusions.
To Direct Your Energies towards More Important Tasks
The foremost reason why no one enjoys payroll processing is because it is a task that takes a lot of time and energy, but does not directly result in increasing sales or earning more profit. Still, it cannot be ignored because if done poorly, it has the capability to seriously damage your business.
Due to all the time and energy that it takes to process payrolls, the core activities of a business may get affected. By outsourcing the HR tasks, you can spend time and energy on more important tasks.
To Save Money
As opposed to the widely held belief, outsourcing HR tasks actually helps a business to cut on its expenditures and save money. Rather than employing a whole HR team to carry out tasks such as hiring, payroll processing, taking care of employees benefit schemes and policies and many other such tasks, simply outsource them to a reliable service provider and save handsome amounts of money that would otherwise be spent to pay salaries to the HR team.