Why You Should Outsource Your Payroll Management Function

Long gone are the days when bosses would call their employees into their offices and hand them their salaries in envelopes. Today, paying salaries to staff has become a complex process with legal repercussions if handled incorrectly. Salaries are a very important aspect of any business and how you handle your salary processes will influence a number of factors including employee trust in your company, reputation of your company and employee motivation.

The best way any business or company can ensure effective and efficient payroll management is to outsource this function to a professional and reputable payroll outsourcing firm. This article looks at the benefits your company will reap by outsourcing its payroll management functions.

Convenience and Time Saving

Attending to payroll matters will demand a great deal of time and resources (these resources include setting up the payroll unit, hiring payroll personnel, acquiring payroll management systems etc.) Additionally, payroll work is very time consuming requiring lots of data input, double checking to ensure correct dues and deductions are made for each staff, transferring salaries to staff accounts and remitting statutories to relevant agencies.

Outsourcing this function will immediately free you and your management team from payroll issues and lets you concentrate on formulating and implementing growth strategies for your company.

Work With Professionals

When you outsource your payroll function, you will get the expertise of experienced and professional payroll officers who know everything concerning payroll management. With an outsourced payroll service, you will be guaranteed an efficient payroll management system with no hiccups. Your payroll outsourcing company will also be in a position to advise you on the best payroll system to implement for your staff and set it up.

Payroll outsourcing firms usually employ the best payroll officers and letting them manage your payroll will give you peace of mind as you will be comfortable knowing that experts are handling your payroll.

Enhanced Payroll Security

Because payroll processing is a complex process, some of your staff and employees might collude and use existing loopholes like double data entry, identity theft or tampering with payroll data to embezzle company funds. The only way companies in Kenya can maintain the integrity of their payroll system is to outsource this function.

Outsourced payroll companies have invested in state of art payroll software and security systems which ensure integrity of your staff data and payroll. Additionally, their payroll staff are usually vetted and have undergone background tests to ensure they are persons of integrity meaning you will have no cases of payroll fraud.


As an MD, CEO or Operations manager, you may not be always aware of the ever changing employment laws and regulations with regard to payroll management. You will have to calculate government taxes for each employee remit statutory deductions to necessary collecting agencies and undertake any necessary deductions from the employee like loans and salary advance. Mistakes, wrong calculations or even failure to remit taxes and other statutory deductions will result in legal action that could negatively affect your company.

On the other hand, professional payroll companies will stay up to date with any changes in payroll laws and regulations to ensure 100% compliance thus helping your company avoid any penalties or fines including those related to errors, improper filling and late submissions.

Are you a company in need of Payroll services? Contact Flexi-Personnel Ltd via email: admin@flexi-personnel.com or call +254 20 2500211/ +254 714702443 for a customized quotation.
About Flexi Personnel Kenya
Flexi Personnel Ltd is a HR Company that was founded in 2008. It is currently the fastest growing HR firm in Kenya offering a wide range of services including Headhunting and Executive selection, Outsourced Labor management, Outsourced Payroll Management, HR consultancy, Psychometric Assessments and Expatriate Services and relocation support.

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