One of the biggest benefits of outsourcing payroll to a trusted service provider is the freedom it gives companies to focus on the strategic aspects of talent management. In-house HR and payroll professionals can leave day-to-day operations to managed services providers. They are free to turn their focus to truly transformative talent management projects, which help to build the business’s brand and create a compelling employee value proposition.
The Covid-19 pandemic has made remote and hybrid working the norm for many companies, and prompted people to reevaluate their work–life balances. In many ways, it is now easier for employees to move on if they are not happy. A smooth payroll process contributes to employee engagement and satisfaction by always ensuring people get paid accurately and on time, and by enabling easy, secure access to guidance and documentation.
Delivering this on a global scale requires specialist payroll expertise in each jurisdiction where a company has employees. However, keeping on top of complex, ever-changing rules and regulations is a major headache, even for large corporates – especially in smaller markets, where there may only be a handful of employees with very limited, or no, payroll-related expertise. Outsourcing payroll to a global provider with local expertise on the ground overcomes this challenge.
A further benefit of payroll outsourcing is business efficiency and risk reduction. Outsourcing payroll offers a cost-effective, secure and comprehensive solution for payroll processes and technology. Companies can gain access to the latest technology from a professional service provider, with the in-depth expertise to ensure high levels of visibility, control, compliance and data security to minimise business risk.

Source: paper ‘Multi-country Payroll (MCP) Consolidation Demystified. Key Considerations for an Employee-Centric Payroll’ by Everest Group.