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European countries embrace HR and payroll outsourcing but UK playing catch up 

by maria

Manchester, UK – HR and payroll outsourcing is on the rise across Europe according to research conducted by SD Worx, a leading European HR and payroll services provider.

Across the region, three in five organisations are using or considering using a partner to ensure the smooth running of their payroll activities. And the average number of European companies that mostly or entirely outsource their payroll, or consider doing so, has risen significantly, from 16% in 2020 to 21% in 2021.

HR outsourcing is becoming more and more appealing as companies feel challenged by the fast-changing business environment and increasingly complex legislation. Payroll is now in the top three areas that HR managers think are most suitable for outsourcing, just behind HR process automation and compliance. In Europe, Belgium (31.1%), France (27.4%), and Italy (25.9%) are the top three countries most open to the outsourcing of HR and payroll in 2021.

And yet, compared to their peers in Europe, UK businesses are much more likely to want to maintain control of some of the process-heavy responsibilities. 54.4% say they want to undertake payroll calculations and make payments themselves.

Colette Philp, UK HR Country Lead, SD Worx, said: “With current disruption on the international business stage, and a complex legislative landscape to navigate, HR and payroll outsourcing is becoming more appealing to European leaders. However, UK organisations appear more invested in retaining control of processes internally.”

“There’s a need to balance the control of basic processes and everyday activities with the desire to progress and focus on more strategic projects which will have a positive and longer-term impact on the business.”

“The obvious places to start with outsourcing are tedious and error-prone daily tasks. This gives HR leaders peace of mind while freeing employees from mundane operations, giving them time to focus instead on the more challenging and interesting work that will help build a stronger company.”

For more information on deciding whether HR and payroll outsourcing HR is for you, please see our eBook ‘Ride Smarter, Not Harder’.