Building a company from the ground up can be a long and difficult journey. Once the company is up and running, you will continue facing challenges. One of the challenges all new companies face is human resource and payroll management.
1. Outsourcing payroll services to a third-party payroll company and relying on human resources support allows you to focus all of your time and energy on your business. Your employees will need to know you are focused on continuing the growth of the company. In fact, 89% of companies believe leadership is “an important or very important issue,” according to the Global Human Capital Trends 2016 report.
2. When you outsource HR and payroll management, you’ll also get access to the latest technology that your payroll and human resources support services are using. Because of this, you will be able to manage these tasks much easier. New HR technology will also help your company run more efficiently and have easier access to all of your records.
3. As a small, growing company, cost is something that needs to be considered as well. You’ll be burning through money trying to maintain an in-house human resources and payroll department. Considering the cost to pay these employees and provide benefits, including things like vacation and paid time off, the costs can quickly add up and be much more expensive than it would be to outsource these tasks. When you’re just starting out, it’s important to consider cost-reduction tactics.
4. Using payroll and human resources support services, you can rest assured that you have enhanced security. When you have in-house HR and payroll services, there’s always the chance that confidentiality will be violated, causing issues in the office. There’s also the risk of identity theft, tampering with company files, or embezzlement of funds for personal gain. A payroll and HR provider most likely has the ability to set alerts for potential fraud and is able to keep your data completely confidential.
5. Trying to manage your own human resources and payroll department can also lead to IRS penalties and other mistakes if you’re not careful. Outsourcing these tasks will increase risk management and allow you to relax, knowing these responsibilities are in the hands of experts.
Outsourcing HR and payroll can give you the time and money you need to focus on helping your business grow, all while knowing your employees and company are in good hands.