When their Payroll Manager left, outsourcing seemed like a natural step, but they were concerned that their complex payroll would be a significant challenge.
Phase 3 stepped in to manage their payroll and ended up making cost saving improvements.
In 2019 a client approached us to discuss outsourcing their payroll. It was a large group of establishments with over 5,000 employees paid on 4 weekly and monthly cycles with 6 PAYE reference numbers.
Their payroll manager had announced their intention to leave the business, and the remaining team felt that outsourcing the payroll was a sound plan although a challenge due to the complexity of the payrolls.
Over 5,000 employees paid
Paid on 4 weekly and monthly cycles
6 PAYE reference numbers
“Payroll is part of the Business manager’s role – they aren’t a payroll expert and are too busy to continue this super complex process – outsourcing seemed like the natural step”
We met with their leadership team and board to discuss which of our payroll services was the best fit for their needs. Our fully managed service, which included all employee queries and support was deemed to be the best option.
Over an implementation period of 2 payroll periods Phase 3 shadowed the payroll manager to understand current processes and to identify potential areas of improvement and greater automation.
The first payroll run was delivered smoothly – the communications plan from Phase 3 ensured employees knew who to contact without the HR team getting involved, and the Phase 3 dashboard allowed the business to keep track of the number of queries and how they were being resolved.
Requests for additional payments (due to missed timesheets) were processed with appropriate approvals and payments issued to employees on the same day.
Within the first three months Phase 3 increased accuracy of their payroll from 92% to 99% (based on reduced overpayment and advance requests from employees) and implemented Paperless Payslips and P45’s which reduced the printing and postage cost substantially (circa £1,500 per month).
Increased accuracy of payroll from 92% to 99%
Improved legal compliance of Payroll
Implemented Paperless Payslips and P45
Reduced printing and postage cost by £1,500 per month
Increased accuracy of data being passed to the finance systems
Reduced in payroll service costs by £33,000 per year
“Our Payroll Manager announced he was leaving – we took the opportunity to review our options”
The team also improved compliance on Auto Enrolment, spotting that the deferral period had been used unlawfully for 6 months, and increased accuracy of data being passed to the finance systems which allowed budget tracking and more accurate reporting.
Overall the client saw a reduction in payroll service costs of £33,000 per year.
By handing over your payroll to experts you can ensure you are legally compliant, improve accuracy, and make savings. To find out more about our payroll service options talk to us today!
