Everest Research Institute Helps Buyers Understand the Payroll SLA

When a company decides to outsource payroll functions, the payroll SLA becomes an important component to the outsourcing agreement.  A well written payroll SLA will cover the key areas of the outsourcing relationship.

Payroll activities are frequently outsourced as these functions are not essential to the organizational strategy.  This type of work can be time consuming for HR employees, which takes their focus off of the organization’s overall business.  The human resources outsourcing industry has been growing at a rapid pace, as more companies are looking for ways to streamline processes, reduce costs, access the latest technology and achieve better quality.  An increasing number of suppliers have been taking over payroll, benefits administration and other major HR functions.

Payroll service providers have a variety of offerings related to payroll, including calculating payroll deductions and filing tax reports.  Due to the value of the services provided by such suppliers, payroll outsourcing has been going strong for decades.

The outsourcing relationship between the buyer and supplier can last for years, which is why the payroll SLA becomes so important.  An outsourcing SLA, also known as an outsourcing service level agreement, is a crucial legal document that specifies the services that will be provided, the quality of services and frequency.  The purpose of the payroll SLA is to ensure that the buyer’s needs are being met by the supplier.  This contract is a major component in the success of an outsourcing arrangement.  Companies must understand what areas need to be covered in the contract to protect the interests of both parties.

Everest Research Institute provides tools to assist buyers with the outsourcing SLA.  By utilizing Everest Research Institute’s Statement of Work & Service Level document for HR Payroll, outsourcers will understand the standard set of commonly outsourced responsibilities within payroll outsourcing arrangements.  This document can be used to help create a strong payroll SLA, by serving as a basis for the negotiation of outsourced services and a guideline for the governing of the quality of the services being delivered.

One of the major functions of an outsourcing SLA is assigning responsibility.  Everest Research Institute’s Statement of Work & Service Level document outlines the key areas of responsibility within the scope of the process.  It also goes into some of the other vital areas of the payroll SLA, including expectations, service level specifications and performance metrics.  

In addition to the Statement of Work & Service Level document that assists with the outsourcing SLA, Everest Research Institute provides valuable products and services that help buyers maximize the benefits of outsourcing.   Everest Research Institute offers syndicated research, custom data cuts, access to the knowledgeable analyst team, custom research projects, webinars, strategy sessions and client event presentations.

Everest Research Institute is the research division of Everest Group.  The Institute specializes in the outsourcing market and provides a depth of insight and wealth of data on human resources outsourcing.  Everest Research Institutes transfers knowledge to buyers so that they can make better decisions regarding outsourcing.

Call (214) 451-3110 or visit www.everestresearchinstitute.com for more information regarding Everest Research Institute’s tools for creating an outsourcing SLA or to receive additional details regarding other products and services relating to outsourcing