Do you know how much your organization is really spending on payroll processing? You may not be considering all the â€œhiddenâ€ costs, and as a result, may be spending much more than you think.
It is usually easy for organizations to identify visible costs such as manpower and technology acquisition, but there is certainly more to it than meets the naked eye. The cost of operating and integrating the different functions within drives up administration costs. Here are some of the hidden costs that you should consider:
Manpower â€“ Apart from direct salary costs, senior executives are involved in training and driving the process culture for the teams involved. These costs are often overlooked. Also attrition causes a lot of problems and all the training needs to be provided all over again.
Technology â€“ Buying technology is one-time cost, but maintaining it for your business is an ongoing running cost. Doing frequent customizations consumes a lot of bandwidth and cost. In most companies, this may not be possible to do in-house as well. Even technology acquisition is not a one-time cost, as technology becomes outdated over time. Organizations need to spend money on upgrades or moving to newer & better technology products.
Infrastructure â€“ Uptime of critical systems need to be maintained. Also due to confidentiality reasons, the hardware used may need to be dedicated to payroll. To comply with statutory regulations, companies also need to maintain back-ups of data for specific period of time. All of this involves cost, and bandwidth.
Paysquare has been focused on payroll outsourcing for over a decade now. With managed payroll services from Paysquare, you no longer need to maintain manpower, technology, hardware, back-ups etc. We take care of all of that as a part of the engagement. Now isnâ€™t that music to your ears?
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