1. Continuity and segregation of duties

Bigger isn’t always better but in this case it normally is. You want to choose a service provider that has a large enough team so that your business isn’t over-reliant on one person or account manager. A larger team also allows the service provider to segregate duties between processing and checking your payroll.

2. Focus

Payroll is a very specialized field and ideally you want to appoint experts to do your payroll. Be cautious of service providers who offer payroll outsourcing as an added service and not their core focus.

3. Scalability

If you have a fast-growing business you want to choose a service provider that can absorb your growth. Payroll Outsource service providers tend to offer better scalability with larger teams.

4. Multi-Nationals

It is complex to run payrolls in multiple countries, especially throughout Africa where payroll tax can often be open to interpretation. If you are a multi-national company, make sure to select a payroll outsource service provider with a proven track record in other countries and ask for customer references.

5. Technology

Payroll Outsourcing companies who use cloud technology offer significant benefits and advantages e.g. customers have direct access to live data. This reduces the dependence of the customer on the service provider for reports and information. A Payroll Outsource service provider that does not offer direct access to live data does not have true cloud technology.

6. Calibre of people

Some Payroll Outsource service providers appoint predominantly junior and inexperienced people in order to reduce costs. The best Payroll Outsource service providers tend to have a healthy mix between experienced and junior people. There should always be an experienced person involved in any payroll.

7. End-to-end service

Ideally you want a Payroll Outsource service provider who does everything from A to Z. This includes submission of tax returns and facilitating payroll payments. However, be cautious of providers who insist on payment of money into their accounts so that they can earn interest. There are payment gateway options available where you don’t have to part with your money until it is paid over to your people.

8. HR Management

Ideally you want to use one system that does both payroll AND HR. Some Payroll Outsource service providers offer cloud technology that allows customers direct access to HR functionality, whilst payroll is outsourced. This is a win-win and avoids tedious integrations between HR and Payroll systems.

9. Customer References

Always ask for customer references!