The benefits of outsourcing payroll in the tourism industry
While all businesses are free to manage their payroll in-house, there are many benefits to outsourcing this to an expert team of payroll professionals.
This is especially true in the tourism industry, where things such as zero-hour contracts, seasonal staff turnover and inconsistent shift schedules are commonplace.
The above can make managing payroll quite complex and lead to problems with inaccurate employee wages and compliance issues.
Here are some key advantages of outsourcing your payroll in the tourism industry.
Increased compliance
With varying types of employment contracts given out in the tourism industry, managing payroll in-house can become overwhelming when it comes to dealing with compliance.
By outsourcing payroll, tourism businesses can ensure compliance with all relevant UK and international tax and employment laws.
Payroll providers have specialist knowledge that will ensure compliance and will constantly keep updated with the latest legislative changes which are frequent within the tourism sector.
Scalability and seasonal shifts
Dealing with payroll during quieter times of the year when there are fewer staff to pay will tempt many in the tourism industry to manage payroll themselves.
However, this may not seem as sensible when the peak months arrive, and the number of staff employed drastically increases.
Outsourcing to a specialist payroll provider will relieve the stress of the inevitable spike in staff numbers but will also mean there is nothing to worry about during the quieter months.
Many payroll providers will scale back their rates when you have fewer employees to pay, so there is no issue with extra costs.
Experience and continuity
In the tourism industry, businesses that manage their payroll will usually have someone employed with years of experience and knowledge of the intricacies and complexities that payroll in this sector often throws up.
This over-reliance could be dangerous if the person in charge of payroll leaves or is absent, things can quickly go awry.
By outsourcing payroll, tourism businesses have a reliable team with experience managing their wages, ensuring that an expert is always in place.
This continuity will be of great reassurance to businesses, especially when they face their peak periods.
Increased efficiency
Outsourcing payroll can also increase efficiency. Payroll providers use the latest technology and systems to process payrolls quickly and accurately.
They can handle complex calculations, process large volumes of data, and ensure that employees are paid on time every time.
This can be particularly beneficial during peak tourism seasons when payroll volumes might increase dramatically.
Cost savings
Managing an in-house payroll team can be expensive, from wages to the costs of training. Additionally, purchasing payroll software and the extra upgrades required can start to add up.
Employing an external team of payroll providers will save money and mean that payroll software is no longer needed, again saving costs.
Focus on the core business
Payroll can be a huge drain on resources, especially for businesses in the tourism industry during busy periods.
Outsourcing payroll will take away the stress, free up time, and allow businesses to focus on core activities such as improving customer experiences, developing new tourism packages, and growing their business.
From compliance to cost savings, outsourcing payroll in the tourism industry has some great benefits.
If you’d like more information about outsourcing payroll and to find out if it is right for you, please contact us today.
