Payroll is typically an unnecessary but important function in a business. As with all other non-strategic functions, payroll outsourcing is critical in an organisation’s hierarchy:

1. To the Payroll Administrator
• Mundane and routine job
• Not a very rewarding and career enhancing function
• Not appreciated and respected
• No opportunity for continuous learning curve
2. To the HR Manager/Director
• Overly dependent on the administrator’s skills and knowledge
• Risk of unrecorded system errors and regulatory non-compliance issues
• Staff turnover can be disruptive and at times, fatal to the business
• Confidentiality of payroll cannot be contained if handled in-house
• Non-core and resource intensive function
3. To Finance
• Payroll is a Non-core function
• The investment in technology and other resources is constantly on the “up” and can be better utilized
• Guarantee of Confidentiality is an issue
• Need to implement additional checks and balances to ensure accuracy of every payroll
4. To the Employees
• Cannot understand why HR cannot drop everything else and respond faster to ad-hoc employee queries
• See HR as an administrative back-office only
• Prefer HR to deliver more strategic and higher-end services to employees
5. To the CEO
• Not a function that adds value or revenue to the business
• The business needs every body to be a Profit Center
• HR should focus 100% on Strategy and People Development