The payroll outsourcing industry is seeing significant growth, and it isn’t expected to slow down anytime soon.
Research revealed that the global payroll outsourcing industry was valued at $9.9 billion, and it is predicted to have a CAGR (Compound Annual Growth Rate) of 7.2% in the next year, growing to $19.5 billion by 2031.
As the payroll industry proliferates, the market is becoming saturated with different types of solutions, from cloud-based software, to hybrid and even on premise solutions, all of which come with their own benefits and risks.
And when it comes to finding the right payroll service that aligns with your business’s wants and needs, the importance of choosing a CIPP and CIPD accredited provider cannot be understated.
CIPP stands for The Chartered Institute of Payroll Professionals. This institute was established to educate and train payroll, pensions and reward professionals across the UK.
CIPP offers compliance health checks in payroll processes and procedures to ensure that payroll professionals understand and are complying with legislation to avoid non-compliance penalties.
They also provide networking events, best practice guidance and a membership hub, offering support for all their members. CIPP members are, “governed by a code of conduct ensuring they remain highly professional, up to date, and compliant.”
CIPD is the acronym for the Chartered Institute of Personnel Development, and is the professional body for qualifications and accreditations in professional human resources (HR).
CIPD exists to, “champion better work and working lives for the benefit of individuals, businesses, economies and society.” They do this through qualifications, training, networking events and hubs. Much like CIPP, CIPD certifications are seen as the global standard of excellence by employers.
When HR and payroll go wrong, it can cost businesses thousands of pounds, and cause irreparable damage to brand reputation.
HR Magazine revealed that payroll and HR errors cost businesses an average of £150,000 a year. From HR grievances leading to costly employee tribunals, to payroll mistakes resulting in fines from HMRC, it is critical that businesses are doing all they can to reduce the risk of errors and follow best practice.
However, if you partner with payroll and HR providers with CIPP and CIPD professionals, the likelihood of errors, mistakes and noncompliance is drastically reduced. This is because they’ve had the necessary training and understand the best practice in the industry.
Both the HR and Payroll industries are subject to constant changes when it comes to regulations, compliance and technology. Remaining agile and keeping up with these ever evolving changes isn’t easy.
When you consider the sheer amount of changes that took place in the 2022/23 tax year for payroll, it’s easy to see why staying up to date with the latest regulation is challenging. Just this year we’ve seen:
● The introduction of five new National Insurance categories (F, I, S, L, V)
● The health and social care levy being introduced
● Two new secondary thresholds
● An increase to the primary and more.
However, CIPD and CIPP individuals have the tools they need to stay abreast of the latest insight, and access to a network of professionals to help them.
Because payroll focuses on numbers and HR places importance on process and regulation, it can be easy to forget that they’re very personal, and requires a level of empathy and excellent communication from providers.
There may be instances where there are difficult conversations, from pay deductions to HR issues. It’s important to have access to professionals who can advise on communication and support your team when it comes to those difficult conversations.
Additionally, when you outsource your payroll and HR, it’s important that the supplier you work with is personal and manageable. CIPP and CIPD professionals understand the gravity of payroll and HR, and this all becomes part of their training.
At Payescape, we understand just how important CIPP and CIPD certifications are when it comes to payroll, HR and time attendance.
This is why we pride ourselves on investing in our team members and offer them access to the latest courses and qualifications from both CIPP and CIPD.
If you’d like to find out more about our qualified team, or you have any questions surrounding payroll and HR, get in touch with Payescape today.
Payescape Limited is authorised by the Financial Conduct Authority under the Payment Services Regulations 2017 (register number 821826) for the provision of payment services.