Exploring the key drivers behind this year’s popularity boom in payrolls outsourcing
National Payroll Week took place last week in the US against a backdrop of considerable growth in the payroll outsourcing industry. This wave of organisations moving towards support from external payroll providers has been boosted in part by reactions to the COVID pandemic.
Outsourcing of payroll duties to trusted third-party suppliers has been on the increase for some years now – a recent report predicted the market to reach $22.8 billion by 2027, and cited substantial growth in the LATAM and APAC markets beyond the current key locations of the United States and Europe. But why is the industry seeing this considerable uptick in popularity as early as 2020?
Governments around the world have responded to the COVID pandemic by bringing in financial relief measures for organisations and their workers. There have been stimulus loans to companies to ensure they can continue to pay staff, as well as solutions such as payroll tax payment deferrals in Australia and new allowances impacting COVID-related leave and absences, such as those covered in the United States’ CARES Act.
Payroll-responsible staff have been required to quickly digest and learn a large amount of new information for calculations and processing – particularly those running payrolls in multiple countries. Add to that the other resource constraints of the pandemic, such as lower staff numbers, more remote or dispersed workers and increased workloads. As a result, many are looking to professional third-party suppliers to take over the responsibility and handle the new COVID requirements to ensure accurate payrolls.
Read the full article here: Mauve Group, 3 Reasons Why Payroll Outsourcing is One of 2020’s Fastest-Growing HR Industries