Accuracy is vital in file processing. The quality of the data delivered to your ESPP provider is paramount to the compliance of the ESPP program. Ensuring the highest accuracy is difficult with in-house employees. There are simply too many points of breakdown in the system. The right outsourcing vendor will have an entire process in place with process controls and checks to ensure the accuracy of every data element on every file.
Outsourcing is growing exponentially as a standard business practice and it isn't just for large businesses. Any growing company that wants to survive the ever-increasing world of risk should be reviewing processes throughout the company to identify candidates for outsourcing. A great place to start is outsourcing the payroll file processing of your ESPP program. It is a process that is labour-intensive, costly in terms of time, and involves a fair amount of risk to the company. With all this in mind, here are five ways outsourcing can improve this process for you:
1. Greater Accuracy
2. Reduced Risk
Producing and delivering the payroll file for each purchase may seem like a small part of the overall management of an ESPP, but it is a vital part that is fraught with the potential for mistakes, mistakes that can expose your entire company to risk. Information can be missing. Outsourcing this process ensures these files are carefully vetted to ensure the accuracy of each purchase.
3. Improved Experience
Delays in purchases and share allocations for plan participants can frustrate them and make them not want to participate. By outsourcing payroll file processing, the step that most often delays the purchase process, you avoid this problem. In fact, as the process improves, as errors evaporate and share allocations come faster, participants will see a marked improvement in their experience.
4. Better Focus on Core Competencies
ESPP payroll file processing is important, but the process isn’t part of the payroll department’s core competencies. By working with a quality outsource ESPP provider, you ensure that you’re able to focus on your benefit department’s core competencies while the ESPP program management continues.
5. Lower Costs
One of the most touted and most important benefits of outsourcing is the ability to reduce operational costs. Not only might you save on hard costs, but also the soft costs of wasted time and energy on these labour-intensive tasks.
Managing payroll file processing for your ESPP is a vital step in making your ESPP run smoothly and work for the participants. And when it goes wrong, it can be disastrous. Consider losing that burden and that risk from your day-to-day operations with an outsourcing solution.
If you need help managing the payroll files for your ESPP, Computershare's Professional Services Group can help. We will work with you to take the entire process out of your hands and put it into the hands of our experts. Find out how we can save you time and money while minimzing risk. Learn more at www.computershare.com/outsource or fill out the form below to speak to one of our solution architects.