Whether it entails dedicating more of your personal time to the business, expecting greater commitment from your employees, or even increasing your workforce, business growth often appears as a time-intensive or costly endeavour. There are, however, alternative strategies to maintain a competitive edge without further depleting your already valuable time. One of those approaches is outsourcing…
Outsourcing has a multitude of benefits, aside from saving you time. In this article, we will explore the benefits of outsourcing, what it entails and how Phase 3 can support your business as you grow through our managed payroll service.
The benefits of outsourcing
Outsourcing can be useful for elements of business management that are time-consuming or don’t revolve around your core competencies.
- Cost efficiency: While outsourcing is often associated with cost savings, its role in strategic growth goes beyond that. By outsourcing tasks such as data entry, HR management, or IT support, businesses can reduce operational costs and free up capital for expansion initiatives.
- Access to specialist skills: Outsourcing allows you to delegate tasks to dedicated specialists, without the lengthy and costly process of hiring new talent. This can also mean tasks will be completed more efficiently without the need for training or recruiting, leaving you more time to focus on growth.
- Efficient upscaling: As businesses grow, their needs evolve. Outsourcing offers scalability and flexibility that in-house teams often cannot match. Companies can quickly scale up or down their outsourced operations according to demand. This flexibility minimises risks and ensures efficient resource allocation during expansion phases.
What areas are best to outsource?
When starting to look into externally managing tasks, start with lower skilled, more repetitive ones. This will harbour the greatest return on investment, as your time is much more valuable than the cost of outsourcing them.
Another factor you should consider when choosing which areas to outsource is your team’s strong suits. When starting a business, it is common for the owner to take on a lot of the administrative roles – such as HR, marketing and finance. However, as the company grows, so does your list of responsibilities. It’s important, to promote growth and a healthy work life balance, that you allow yourself to delegate these tasks in order of how much they align with your skill set. This makes it easier for you to ease your team’s workload in a way that prioritises efficiency.
One of these repetitive and time-consuming areas is payroll management. It is a vital part of any business – it makes sure your employees are paid on time, that the correct tax is deducted and that you are complying with a variety of regulations. It can also be a daunting task if you aren’t experienced. Mistakes can be costly and time-consuming to fix and could even land your company in legal troubles.
Where to start
Outsourcing can be scary – you’re giving a third party huge responsibility within your business – but it doesn’t have to be. Here are the key things to consider when looking into external management:
Firstly, do your research. Treat this process the same way you would when hiring new talent. Look into what they specialise in and what they can offer you that falls outside of your current skill set. Meet with a variety of providers and ask them all the questions you need to.
Secondly, once you have decided on a provider and are ready to start the process, have a contract in place that covers all of your expectations and needs. This gives you the peace of mind to let the providers do their job and for you to focus on growing your business. Outsourcing is a financial agreement like any other, so ensure the terms are clearly defined and thoroughly explained.
Finally, as you start to work with your provider, keep a strong line of contact between them and your team. Schedule regular meetings and check-ins, especially at the beginning, so both parties can work harmoniously. This also means you know for sure that they are providing the service you agreed on and meeting your expectations.
How Phase 3 can help
At Phase 3 one of our more popular, award-winning services is outsourced payroll. Our holistic approach means we can tailor to your specific needs and goals, producing the best results for your business.
Whether you simply require support for your in-house team on certain month-end processes, or you’re looking for a fully outsourced payroll service, we’ve got you covered.
All of our consultants are CIPP accredited and experienced in the technological skills needed to handle your payroll systems efficiently, so you can have complete peace of mind that your payroll department is in safe hands. Contact our team of payroll experts for more information.