When I joined my current organisation last year our payroll had been outsourced a few months prior. We had serious customer service and accuracy issues with the outsourcing vendor, to the extent that 50% of one of my team member's time was spent resolving issues with the vendor and placating angry staff, and 25% of my time was spent managing the relationship with the vendor. Plus, we had a payroll consultant coming in a few days per month to help with all the problems that were being caused by the vendor.
I did a cost/benefit analysis and decided to bring payroll back inhouse, without adding to our headcount (the staff member who was spending 50% of her time dealing with payroll vendor errors now looks after payroll herself, at around 25% of her time), and saving us around $100K per annum in outsourcing fees. We were paying for the payroll software anyway, so there is no extra cost involved for us to bring it back inhouse.
Win/win/win - our staff are happy, the CEO is happy, and my team is happy.
Belinda, shoot me a PM if you like and we can compare notes. Maybe it's the same vendor?
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