HR, Outsourcing, Payroll
Outsourcing your payroll function
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The Chartered Institute of Personnel and Development (CIPD) strongly believes that outsourcing HR services is one route that HR functions can take to achieve a more strategic and influential role within their organisations. Michael Millar looks at the benefits and the nitty gritty of outsourcing your payroll.
A quarter of FTSE 100 firms and 30% of UK companies now outsource their payroll and this one area where HR can make its mark.
But the decision needs to be carefully considered, as it will not be right for all. Considerable effort needs to be devoted to ensure a smooth transfer of responsibilities.
Vanessa Robinson, organisation and resourcing adviser at the CIPD, says: There are many circumstances in which outsourcing HR services can deliver tangible benefits to the organisation, for example freeing HR professionals to devote more time to a strategic role in supporting organisational performance.
The CIPD has identified several key benefits in outsourcing:
* Reducing costs: A key factor in many decisions to outsource, but not to be considered in isolation from other costs and benefits
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