The number of staff employed within the UK’s education sector is closing in on the full time equivalent of almost one million. Such a sizeable workforce brings new and changing roles, demanding the modernisation of how staff are paid.
Whilst the range of providers and systems on offer for schools to manage payroll is to be celebrated, it can also be a point of contention. Education payroll is complex, and you need to feel confident your payroll provider understands its niche requirements.
Keep reading to learn what you should consider when choosing the right payroll partner for your school, college, or MAT.
Why is education payroll so complicated?
Ask anyone working in education payroll to describe it in one word, and we bet ‘complicated’ would come up time and time again. It’s been just over a decade since the introduction of auto-enrolment pensions caused havoc, and the issues didn’t stop there. Since, we’ve seen numerous updates and reforms around pay for the sector’s school staff, from the apprenticeship levy to holiday pay rules. To say there’s lots to contend with to execute the perfect pay run would be an understatement!
Why do some schools outsource payroll?
It’s no wonder, then, that many schools choose to outsource their payroll and pensions activities to a specialist. After all, getting it wrong can cost more than an employee’s dissatisfaction, sometimes ending with legal penalties and reputational damage.
There’s also the 174 (and probably counting) pieces of legislation education payroll needs to comply with, too. Why would you want to add even more pressure to your payroll or HR team when you can pass the task to a specialist to take care of it for you?
The benefits of outsourcing education payroll
It feels like a no-brainer. And by and large, it is. By partnering with a payroll provider, you remove the burden of having to stay up-to-date with changing legislation, plus all the other intricacies that affect pay runs and pensions. (Think maternity leave, long-term sickness, back-pay, and more!) It’s the bread and butter of payroll providers specific to the education sector, so you can feel peace of mind they’ve got it all under control. And risk of error is low, if at all.
What’s more, it’s not just a stress-free pay run and happy, correctly paid staff that benefit. Your school can take advantage of:
- Operational cost savings, like payroll equipment or software that was never used to its full capacity
- Protection from digital crashes or hacks, which could lead to critical issues
- Removing a single point of failure from pay runs, like a staff member responsible for payroll being ill or leaving the organisation (without passing on their knowledge of your school’s unique payroll processes)
How to choose a payroll provider
We told you it’s a no-brainer! But, a word of caution. Like with any HR activity you outsource, it’ll be as well and good as the provider you choose. So, here’s our handy tips of what to look out for (and what to avoid) if you’re considering outsourcing your school’s payroll.
1. Look for an education payroll software specialist
Payroll providers that specialise in education add far more value than sorting your school’s payroll alone. They understand the niche demands of the sector, meaning they provide a better and broader advisory service, too. Thanks to their experience with the complexities of education payroll and HR, you’re likely to be able to lean on them for support and guidance across other areas of HR, too.
2. Ask questions to understand security and data arrangements
When you’re involved in payroll, you’re involved with a lot of personal staff data and information. You need nothing short of absolute confidence in your payroll provider to take the security and protection of this data seriously. Ask questions around the measures they have in place to safeguard this information, and keep asking until you fully understand their answers!
We recommend asking payroll providers to explain how they:
- Protect data from unauthorised access, loss, or corruption
- Store and back up data, with adherence to GDPR standards
- Implement safeguards on personal staff data
3. Check for Bacs approval
You can be forgiven for assuming that all payroll providers are Bacs-approved – but it’s simply not the case! Don’t let this hidden cost spring up further down the line. Ask for transparency about charges from the offset, and make sure you understand the specifics of the quote before going ahead.
Remember, Bacs-approved bureaus are your best friend because they handle automatic and secure employee payments!
So, which schools should outsource payroll?
In our experience, any school or MAT that finds running payroll in-house a burden, or simply doesn’t have enough resource to do so, should consider outsourcing it. For instance, standalone schools or single academy trusts, where HR and payroll can already feel stretched – if not, merged into one function.
Outsourcing education payroll is strategic, cost-effective, and provides you with bonus access to expert support and guidance across complex activity. At the end of the day, that’s something you simply can’t put a price on.
Integrated payroll and HR, with Every HR
Did you know our school HR software, Every HR By IRIS, fully integrates with a range of payroll providers, like Dataplan Education By IRIS? We’ve provided schools and MATs with payroll services since 2007, so you can trust they’re as experienced and specialist in the sector’s complexities as they come.
Learn more about the benefits of outsourcing your school’s payroll by speaking to our friendly team today.
