Global Factors To Keep In Mind When Outsourcing Payroll: A Comprehensive Guide

Global factors to keep in mind when outsourcing payroll

In every business, there comes a time when the pressure and workflow of growth hamper non-critical business functions. Various questions start coming to mind:

How can we manage payroll?

Do we need an HR department?

Why isn’t our single HR employee able to meet the company’s demand?

If you are in this phase already, then it may be time to utilize a reliable payroll outsourcing partner. 

Regardless of the reason why your payroll is getting delayed, if it is getting delayed, you need a solution quickly.

If your HR, for instance, fail to deliver payroll correctly one month, your employees would automatically start judging your capabilities. If this keeps happening month after month, you can end up increasing the employee turnover of the business.  

Hence, hire a payroll outsourcing partner to focus on more critical business functions. 

This article will discuss the factors that you need to keep in mind when hiring a reliable payroll outsourcing partner. This short guide will help you make the right decision about payroll outsourcing companies.

What You Need to Consider While Selecting A Payroll Outsourcing Partner?

When you are planning to hire the best payroll outsourcing provider, you need to consider a series of things. We have made a list below. Go through these factors and evaluate your payroll outsourcing service provider accordingly. 


Almost every business that you will talk to would recommend you to consider the quality of the payroll outsourcing company. Everyone can actually resonate with the quality of customer experience and services of a provider if they are good at it. 

Hence, the first thing that you need to assess is the quality. This should include:

      • Quick responses
      • Timely payroll calculations
      • Timely payroll dispatch
      • Accurate deductions
      • Timely report generation

Of course, your payroll outsourcing provider will tell you that they offer optimum quality. But, you need to see it. 

As a result, the best way to judge the quality of services is to take a trial. 

If that is not available, then you need to go through their website, check customers’ reviews, and see how well their social media is. These things would give you an idea of customers’ trust in the brand, which will help you understand the quality of their services. 


For a large percentage of small and medium organizations, the cost of a payroll outsourcing provider will be the deciding factor. 

You need to assess what the payroll outsourcing provider is offering and what value they are offering under this package.

It is possible to judge the right pricing model by comparing it. Check 3-4 payroll outsourcing providers and then compare the pricing models. If you find the lowest one, then don’t pick this payroll outsourcing service provider. Hold on and check their quality of work and services.

The lowest price doesn’t mean optimum services. You need an optimum price paired with quality and add-ons. 

For this, check pricing, go back to the quality pointer and see which provider is offering the highest quality at the lowest price. That’s the payroll outsourcing partner you want to work with!

For example, Company A takes USD 500 for a month and Company B takes USD 300 for a month. But, Company A offers accurate calculations and quality results. On the other hand, company B offers delayed results, as per customer reviews. 

Who would you choose? 


More than anything, you need a payroll outsourcing partner that culturally fits your company. If you dispatch salaries on the 1st of every month, your provider should agree to make data available till then. You can’t change the structure without notice, as your employees have obligations to fulfil.

By this, we mean that every person has a set pattern of spending based on the salary dispatch date. Some set their credit card dates accordingly and others need to pay rent. You can’t change these things immediately.


Call it old-school or traditional, but business professionals still need to engage and communicate. In B2B business services as well, you need to maintain a proper flow of communication to achieve tasks smoothly.

When these services are flowing from your reliable payroll outsourcing partner to your company, you need:

      • Proper communication
      • Timely responses
      • Quick resolutions 

Many outsourcing providers offer a dedicated contact person to every company to mitigate engagement issues. This key manager helps you resolve queries, find answers, and maintain a proper flow in the payroll department. 

Global Aspects of Payroll Outsourcing Companies

When you are looking for a payroll outsourcing service provider, you need to keep in mind some global aspects. We have given details of these aspects below. Check out:


When you hire a payroll outsourcing partner, you are trusting this company with a lot of things. Not only payroll but also regulations, rules, and compliance shift from your set of responsibilities to your provider’s responsibilities. This is even complicated when you are operating globally. You need a provider who can look after different compliance requirements and operate accordingly.

For instance, even if you have offices in two states, your payroll requirements can vary. Your reliable payroll outsourcing partner should help you stay compliant at all costs. 


If you choose the wrong payroll outsourcing service provider, it can be damaging for your organization. 

Therefore, go through these questions and assess your requirements before finding a reliable payroll outsourcing partner:

      • Number of employees in the companies
      • Number of locations in which you have offices
      • The complexity of regulations at different places
      • Number of in-house payroll managers or HR managers
      • The budget of payroll outsourcing

How To Select The Right Payroll Outsourcing Partner?

After considering the above factors, both local and global, you may have already shortlisted a series of payroll outsourcing partners. To select the right one, you need to look for the following differentiating factors:


Any payroll outsourcing company’s knowledge in the field matters. If they don’t have the experience, they don’t know:

      • How to handle glitches?
      • How to manage payroll even in lockdowns?
      • How to resolve employee queries?
      • How to bring accuracy to the table?

So, visit the website of the payroll outsourcing provider and check their experience. See the number of years they have worked in the industry, which will benefit your organization.

Technical Know-How

Along with the experience, you can’t hire amateurs. You need people who know what they are doing. This means that employees of the payroll outsourcing partner should have the knowledge and experience in the field too. They should know critical concern areas of payroll, deductions, and calculations. They should be able to explain everything in a layman’s term. 

To assess this, you need to talk to the team of payroll outsourcing provider. This will give you a clear idea. 


When we started this discussion, the first thing that we explored was the quality of services. Right?

Now, this is how you can evaluate the quality of services.

Check online reviews of previous customers and find out what they think about the payroll outsourcing company. If they have good things to say about their services and support, then you are on the right track. 


When you are signing the contract, check if the company is stable on not. 

      • Have they worked for the long-term?
      • Have they faced issues recently?
      • How many clients they currently have?
      • What does their client portfolio say?

How To Avoid Global Payroll Challenges?

Global challenges plague the entire payroll processing. Hence, you need to mitigate these challenges to avoid reputation or monetary loss.  


Globally, the storage and security of payroll data is a major concern. To mitigate these concerns, you need to evaluate the security structure of the payroll provider.

      • Are they following PII security regulations?
      • Are they using antivirus, antimalware, and other such controls?
      • Do they audit data to find security loopholes? 


Similar to security, you need to take care of the company’s records as well. For payroll, your outsourcing provider requires accurate data of the employee. They should implement the provision to keep records updated. This data should not contain duplicate files or redundant information. 

Correct data of employees should be stored in the system, and correct transactions should be associated with this data. 


Things change too frequently and too soon.

Sometimes, while you are taking your time to adjust to a new regulation, it changes or modifies in some respect.

Your payroll outsourcing partner should quickly adapt to changes, whether it is industry recommended methods, regulations, and internal policies. 

Over to You

We have briefly covered everything you need to know in this article. You can now select the best payroll outsourcing provider for your organization. If you still face issues, then you can simply contact Paysquare. 

Paysquare is a payroll outsourcing partner with [years] of experience in this field. This has empowered us to create a team of subject matter experts, who help you with comprehensive payroll management.

For details on payroll outsourcing, simply visit our website. You can have a look at our blog and gain information in this area.