Why You Should Outsource Payroll in 2024

For any organization to flourish, it is important to have a strong Human Resources unit. For any HR team to succeed, it is essential to have proficient software and other online tools to facilitate the smooth running of the company and its workforce. As with all HR departments, payroll is an important function that needs to be carried out in a timely and accurate manner. However, it can be a long-winded and complicated process which makes payroll outsourcing a desirable practice among many organizations, especially in this era of the pandemic.

The trouble with in-house payroll processing

When the pandemic first set in, companies across the world found themselves in a serious technical predicament due to the resulting impositions of lockdowns and social distancing mandates. As the world faced the prospect of working and studying remotely, organizations scrambled to help employees make a smooth transition to working from home.

Now, as we gradually return to the workplace having regained a portion of the pre-pandemic normal, companies are scrambling yet again to get back on their feet and compensate for the lost time. In this bid to readjust and reacquire the trajectory of growth, the workforce finds itself overburdened with tasks, especially the HR department. This is why choosing a third-party payroll service provider to manage your payroll needs can take a substantial amount of work and trouble off your hands.

While in-house payroll processing can seem more sensible compared to outsourced payroll, there are some major downsides to it that can have a long-term impact on a company and its personnel:

Mismanagement of time

Payroll processing can be a very time-consuming, albeit necessary, practice. Since it includes calculating employee benefits, tax deductions (or lack thereof), documenting payroll taxes, and computing salaries and wages among many other functions, it is extremely important to maintain a high degree of accuracy and efficiency while processing payroll. However, in a company setup where an employee may have more than one responsibility, having to oversee payroll can leave them with less time to focus on the main tasks that are more imperative to the smooth running of the organization.

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Reduced overall productivity

Since payroll processing requires a substantial amount of time, it reduces the time that employees could instead utilize on tasks and responsibilities that are more vital to the nature of the business. Less time leads to less overall productivity of a company. For example, if the organization in concern is a bank, payroll processing can take away much of the time that they would rather devote to serving their clients better, getting investors, and carrying out a multitude of other functions.

Employee burnout

Having to do too much in too little time can backfire in ways that can hurt both the employee as well as the company. Added amounts of work and stress can increase the chances of burnout in the workforce and can also possibly lead to increased employee turnover rates. Ensuring employee welfare assures the continued functioning of your business and reduces monetary losses. Especially now as we make a return to the workplace in the backdrop of the pandemic, it is essential for employees to have a proper work-life balance that would promote wellbeing and productivity. Functions such as payroll processing can be conveniently outsourced which helps employees manage their time more effectively and mitigates the chances of them feeling overworked.

Upsides to payroll outsourcing in the post-pandemic world

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In business, time means money. However, if your employees are tasked with additional work that can be easily outsourced, particularly payroll processing, it can result in a loss of precious time and personnel burnout. Without a doubt, outsourcing your payroll concerns to a third-party organization comes with myriad benefits.


Outsourcing payroll not only saves you the much-needed time that you can spend focusing on the main goals of your business, but it also ensures timely and accurate processing of payroll. In addition to saving time, choosing the right payroll service provider can also prove to be less expensive in terms of manpower and money as outsourcing payroll can be a more cost-effective measure in the long run. In some cases, in-house payroll processing can actually be costlier than outsourced payroll with regard to both money and labour.


In order to ensure effective payroll processing, a company must guarantee compliance with the legal aspect of accounting, that is specific to their region or country. Complying with the law can help your company avoid any fines or penalties resulting from possible violations. However, it can be a cumbersome process as labour laws are subject to change every now and then. In such cases, it would be advisable to outsource your payroll concerns to third-party experts who keep abreast of and comply with the changes in accounting legalities and incorporate appropriate payroll practices accordingly.

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A professional, reliable third-party payroll service provider company can be counted on to incorporate the highest degree of security while processing your payroll needs. It is of the essence to have a premium payroll management software that can aid in the safe, accurate, and timely processing of payroll to ensure continued confidentiality and privacy. However, such softwares are expensive and need to be frequently updated. When it comes to outsourcing payroll, a company’s technical support team does not have to worry about updating the payroll softwares in a timely manner, nor does the company incur the added costs of purchasing them.

Expert, hassle-free service

It is common for a company’s HR unit to be hit by a deluge of computations, reports, and other tasks that need to be processed and compiled at the end of every month and financial year. Outsourcing payroll to a third-party company can pave the way for an effective and hassle-free way of superannuation processing, monthly regulatory lodgements, reporting and preparing payslips, rostering and time attendance, award interpretation, as well as the annual processing at the end of every financial year. Optimized payroll services can go a long way in terms of accuracy, punctuality, and organized practices for your company.

About BSH

Since 1993, BSH has been delivering state-of-the-art proprietary solutions to companies across the Middle East, enabling streamlined HCM processing and cost-effective practices. Their 12-year partnership with the world-leading ADP, coupled with a clientele spanning 300 multinational corporations operating in the Middle East, has made them a trusted leading regional figure in the fast-growing global payroll service.