Payrolling is a smart way for many employers to free up time and worry. You don't have to worry about contracts, payroll and continued sick pay. The payroll company takes care of all that. But, as with any solution, it has to be applied properly. And that's where it often goes wrong.
In this article we show you which three mistakes employers most often make with payrolling. Recognizable examples, practical tips and insights that will help you avoid these pitfalls.
What is payrolling again?
With payrolling, you hire your own employee, but the legal employership is transferred to a payroll company. This company handles everything around contracts, wages and administration. The employee simply works for you in your team.
Meta Carrière often explains this to employers as follows: "You remain the day-to-day manager, we take away the legal and administrative burden." So you know exactly where your responsibility lies and what you can expect from the payroll company.
Mistake 1: Thinking payrolling is the same as temping
A classic: employers confuse payrolling with broadcasting. Yet there is a big difference.
- - With temporary staffing, the agency looks for the candidate for you.
- - With payrolling, you recruit the candidate yourself, but transfer legal employment to a payroll company.
For example, a retailer finds itself an enthusiastic sales associate through social media. Instead of drafting a contract himself, he engages payrolling. The payroll company handles all the administrative obligations, but the employer remains the one who manages, trains and motivates the employee.
Tip: Always ask yourself, "What belongs to my role, and what belongs to the payroll company?" Companies like Meta Carrière can help you with this by clearly mapping out the tasks.
Mistake 2: Not paying attention to collective bargaining agreement and terms of employment
Many employers think payroll employees are cheaper, but that's not true. Legally, they are entitled to the same working conditions as your permanent staff.
For example, a hospitality entrepreneur hires extra cooks through payrolling for a summer peak. He pays them nicely, but forgets the allowances for evening and weekend work. This leads to frustration, disgruntled staff and retrospective corrections. After two problems with their paychecks, 49% of employees say they are looking for a new job.
Tip: Choose a payroll partner who knows your industry well. Meta Carrière, for example, ensures that collective bargaining agreements and terms of employment are always applied correctly. This way you avoid unpleasant discussions and legal risks.
Mistake 3: Too little contact with the payroll company
Some employers see payrolling as something that runs "in the background." You provide data and that's it. But problems arise precisely because of too little contact and little flexibility. Payroll errors are twice as common with in-house processing as with outsourced payrolling.
For example, a construction company runs all its temporary workers through payrolling. An employee calls in sick, but this is not reported in time. The payroll company continues to pay, without verification. Only weeks later is it discovered, and everything has to be put right.
Tip: Schedule set times to have contact with your payroll company. For example, discuss current contracts, sick leave and employee questions on a monthly basis.
Are you ready to save time and outsource risks?
Payrolling can offer many benefits: convenience, security and more focus on your own business. But you can only succeed if you avoid the three most common mistakes:
- 1. Don't think of payrolling as outsourcing: you remain the manager.
- 2. Make sure payroll employees get the same terms and conditions as your own people.
- 3. Stay in touch with your payroll partner: good communication prevents problems.
By avoiding these mistakes, you will make payrolling a powerful tool that benefits both you and your employees.
Want to know how payrolling can make a difference for your company?
Schedule a meeting today and find out how you can save time, avoid risks and at the same time offer your employees the security they deserve.
