Marina Nolte, Outsourcing Manager, Softline VIP, believes that outsourcing is one route that HR functions can take to achieve a more strategic and influential role within their organisations. But the decision needs to be carefully considered, as outsourcing is not a one-size-fits-all solution.
“Outsourcing is essentially about getting back to basics; to the functions that really drive your business. Adding the HR function to the daily list of tasks can cause other areas of the business to be neglected. Outsourcing payroll functions save time and frees up the company to concentrate on its core business,” Nolte says.
Reducing costs remains a key factor in most decisions to outsource. While big businesses can afford to maintain big payroll departments, an in-house payroll can be a money burner for small businesses. Payroll processing is expensive because it entails labour, assets and technology costs. A third-party provider has up-to-date technology and economies of scale, which means that it should be able to process each payroll more cheaply than an in-house department.
An added bonus is that a third-party provider comes with accuracy, reliability and speed, all of which minimise costly mistakes, variances in the quality of work delivered, and the need to hire extra hands to meet demand. A third-party provider is also responsible for keeping abreast of legislation and other developments, and to regularly train their staff to ensure they have the latest knowledge. With this expertise, a company can be assured that it is complying with the prescribed tax, labour and other laws pertaining to payroll.
According to Nolte, staff turnover in any function is a huge concern to a business. However, such turnover disruptions in payroll affect the timely administration and disbursement of salaries, and sends wrong signals to the workforce. An outsourcer has access to qualified staff, which can step in whenever necessary. With an outsourced option, a company will never be faced with the dilemma of the key payroll employee having walked out the door with all the relevant knowledge in tow.
“If salaries are delayed or paperwork is not up to scratch, it's the payroll-services provider's responsibility to fix things, and if they can't, the customer can take legal action - or simply switch to another service provider. In an in-house scenario, an HR manager could spend weeks firing, hiring and training payroll staff in order to get the department running efficiently.”
Lack of compliance in in-house payroll is one of the most common complaints outsourcers hear. Moreover, the lack of regular internal audits on payroll systems to ensure compliance, and the speed at which statutory bodies notify employers of breaches, leads to unnecessary workloads and costs. An outsourcer, on the other hand, has to meet service level agreements, and ensuring compliance is right at the top of their deliverables to the client.
“There's a lot to be said for the peace of mind that outsourcing payroll services can bring to a business. Fewer headaches and fewer hassles means you are left to focus on running a profitable business,” Nolte concludes.
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Softline VIP
Softline VIP is a leading supplier of payroll and human resource management solutions in South Africa, Namibia and Botswana. The company now boasts more than 24 000 clients.
With three payroll and human resource management products, Softline VIP is able to meet the needs of any size company. Coupled with an extensive service offering, Softline VIP is the only payroll and HR solution geared to meet the challenges of the modern payroll office.
The VIP products are synonymous with ease of use, stability and reliability, with the flexibility to cater to the unique needs of every client. VIP promises long-term sustainability over and above legislative compliance. VIP understands the human resources and payroll environment and offers the client peace of mind by providing a total solution.
Softline VIP products include:
VIP Premier - Softline VIP also supplies leading technology to service large and corporate clients. VIP Premier is geared towards increasing the functionality of payroll systems and provides an uncomplicated solution for medium to large organisations. One of the key features of this product is that it is quick to implement in comparison to similar solutions. Meeting the needs of any payroll office and supplying the most suitable solution is important for Softline VIP as it strives to ensure practical solutions for all users. Our products are easy to use and reliable and the information produced is accurate and complies with all statutory requirements.
VIP Classic - VIP Classic is the perfect solution for clients with bigger operations than the one-man business. VIP Classic provides the same flexibility as larger systems, but is aimed at the small to medium sector. This software offers a total solution to users.
VIP Essentials - VIP Essentials is geared to small businesses and contains the same ease of use and stability of all VIP's products. VIP Essentials is an affordable product making it an ideal solution for the small business paying less than 30 employees.
Softline has a solid track record of profitability and cash generation. The group delivers quality accounting, payroll and CRM software solutions that improve the efficiencies of businesses around the world.
Softline
Softline is a leading provider of accounting, payroll, CRM and ERP software solutions to small, medium and large sized companies. Founded in 1988 by Ivan Epstein, Alan Osrin and Steven Cohen, Softline was established during the formative years of the software industry and listed on the JSE Securities Exchange South Africa in February 1997. Softline expanded to establish a strong position within its area of focus in South Africa and Australia. Focused on the development of accounting, payroll, CRM and ERP software solutions, Softline has a 20-year track record as a market leader. The group has a broad range of products offering users a variety of software solutions to run their businesses efficiently. Softline's leading brands include Softline Accpac, Softline Enterprise, Softline Pastel (Accounting and Payroll) and Softline VIP. The combination of the group's product offerings provides Softline customers with comprehensive, well-branded accounting, payroll, CRM and ERP software solutions. In November 2003, Softline was acquired by the Sage Group plc, a FTSE 100 company. The software group includes market-leading businesses throughout the United Kingdom, Europe, North America, South Africa and Australia, supplying business software to the small, medium and large sized business community. Softline has a solid track record of profitability and cash generation. The group delivers quality accounting, payroll, CRM and ERP software solutions that improve the efficiencies of businesses around the world.
The Sage Group
The Sage Group is a leading global supplier of business management software solutions and related products and services, principally for small to medium-sized enterprises. Formed in 1981, Sage was floated on the London Stock Exchange in 1989. Sage has 5.8 million customers and more than 14 500 employees worldwide. We operate in over 26 countries covering the UK, Europe, North America, South Africa, Australia, India and China. For further information, please visit http://www.sage.com.
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