Payroll Processing

Pretend you are the V.P. of Human Resources. Your payroll manager wants to outsource day-to-day processing of pay checks to a third party to allocate more time to financial analysis. In at least 200 words, describe at least three factors you would use to justify a decision to outsource or not outsource payroll processing.

Answer preview

Payroll processing is a delicate task in a company and needs a lot of care and attention. Sometimes, it is difficult for a company to perform optimally on this task, hence outsourcing payroll processing services from a third party. The following are reasons supporting why it is better to outsource rather than delegating the task to the company’s employees. The first factor to consider is the flexibility to use staff’s skills to be most beneficial to the business. Not only will this improve productivity but also reduce errors associated with a heavy workload on the employee (Bragg, 2004.) On the other hand, outsourced personnel tends to have more knowledge and experience, hence providing better and quality work than the company’s employees.

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