The Myths of Outsourcing (Part 1 of 3)

Dolvin partner Optimum Solution's highlights some myths about outsourcing payroll.  Below is part 1 of 3 stories highlighting real life success stories.  Click here to learn more about Optimum Solutions.

Myth #1:  “If we outsource, someone else is doing all the work”

FACT:  Companies often have the false impression that they will no longer need to worry about any payroll functions if they decide to outsource.  The reality is that companies are still responsible for providing the outsourcing company with the essential information.  The company must collect and input items such as time, vacation, and pay information and then transmit the information for the outsourcer to print the paychecks.  As a result, all of the payroll functions are being completed internally.

Another issue that can arise with outsourcing is the loss of control over the payroll process. Service providers mandate that you meet their deadline and work on their schedule, not your own.  If there is a problem with submitted payroll information, the company must alert the outsourcer of the error and wait for them to correct it – potentially delaying your payroll.

Full-featured in-house payroll applications automate everyday functions such as tax reporting, vacation accruals, time input, direct deposit and garnishments.  The current personnel would be completing the same tasks, whether the company chooses to outsource or bring the payroll process in-house.

Optimum Solutions customer:

“While outsourcing, my staff still had to process the payroll, which is up to 90% of the work…I always thought outsourcing was better, until I really looked at the features and benefits of bringing payroll in-house with Optimum.”

Bruce Kalem

CFO & VP

Milan Express Company, Inc.

Companies today have two options for paying their employees:  outsource their payroll or bring it in-house.  Companies are often drawn to payroll outsourcing by their promises of saving the company time, money and resources.  However, those companies quickly find the hidden fees and lack of flexibility and control after they outsource.  If this applies to your company, take the time to learn more about the “myths” of outsourcing and how an advanced, in-house payroll solution can provide complete control without the hidden fees.