Did you know that more than half (52%) London businesses outsource either their payroll, HR or both?
Last year, Moorepay, a division of employer services giant NorthgateArinso, launched their cloud-based HR and payroll solution, Moorepayhr. Since then, the software has become a leading product in its field, gaining over 1,000 new client wins in just 12 months. Significantly, 32% of this growing client base is situated in London, a market which has been quick to adapt to cloud technology and embrace the benefits of outsourcing. So what is it about HR and payroll outsourcing that has appealed so much to businesses of London? And how has the cloud helped?
Looking at the details of Moorepayhr’s new client wins, we can start to identify why outsourcing is an appealing option for businesses. Of the London-based businesses that have joined Moorepay over the last year, a huge 98% are small to medium-sized enterprises. The solution, though initially developed to suit the needs of the SME, can be adapted to businesses of any size and offers full functionality to larger organisations. But, it is companies with less than 250 employees that have been particularly enamoured with the Moorepayhr product.
The recent changes to PAYE, the most significant since it was introduced in 1944, are perhaps a factor in the shift to outsourced solutions for SMEs. Real Time Information (RTI) is HMRC’s attempt to streamline the PAYE system; it requests that employers submit up to date information on their employees every time they are paid. Recent reports suggest that the introduction has been met with concern by smaller organisations, who feel that they are unprepared and without the resources to meet these new requirements. While HMRC has made allowances for companies with low staff numbers, the majority became RTI compliant in April and the rest will be expected to follow by October this year.
Essentially, this means that many SMEs have chosen to outsource their HR and payroll functions to ensure they are equipped for this HMRC shake-up. But the benefits to outsourcing don’t stop there.
Many employers are put off outsourcing their HR and payroll as they see it as the more costly option. However, choosing to keep these functions in-house can end up generating a larger number of costs. There are of course salaries and benefits for staff, as well as the costs involved with purchasing, hosting and maintaining an in-house system. Then there’s the expense of training and recruiting staff and the time involved with managing a team.
An outsourced HR and payroll company, such as Moorepay, is in the position to split these costs across their huge client base. While the Moorepayhr product is in its infancy with 1,000 clients, Moorepay, its parent company, was established in 1966 and currently supports over 10,000 businesses.
What’s more, the introduction of the cloud has helped to provide greater efficiency and help keep costs even lower. The cloud has been a burgeoning development within the HR and payroll industry and Moorepay have been at the forefront of this advancement, ready to harness its power and pass on these benefits to customers. The cloud is a constantly growing and developing resource, but this doesn’t spell constant upgrade fees. In fact, with Moorepayhr, there are no upgrade costs to contend with at all.
With all that time no longer soaked up by overseeing HR and payroll, senior staff and business owners will find more time to focus on core business functions. Suddenly, you may find you are in the position to spend that surplus time, money and energy on improving functions that have a direct effect on your organisations bottom-line, not to mention the time to better serve your customers.
London businesses have been particularly quick off their feet to welcome the benefits of outsourcing. A recent survey by Moorepay polled around 600 UK organisations on how they conducted their HR and payroll functions and found that, of the businesses based in London, more than half (52%) were outsourcing either their payroll, HR or both.
To find out how you can benefit from outsourcing your HR and payroll, visit http://www.moorepay.co.uk or call Moorepay on 0845 184 4615.
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