Do you dread payroll time? Do you lock yourself in your office for hours at a time, attempting to understand the terms of your businesses payroll? Do you waste a lot of valuable time counting hours and calculating deductions? Payroll is a huge task that is necessary if you want to hold onto quality employees. Many companies will find it useful when outsourcing payroll for a variety of reasons.
Dedicated outsourcing payroll services
Payroll has a strict deadline. If it not completed by a certain date, employees will also not receive their paychecks on time. When a company fails to provide regular and timely paychecks, employees look for alternative employment. You will eventually lose the best employee candidates, thus also bringing down the quality of your employees. Dedicated outsourcing payroll services can ensure that the payroll is completed by a specific date and that all employees are paid within a timely manner.
Another concern with on time payroll services is that tricky situations do occur. Employees may need to make changes to their withholding or may request additional information regarding their payroll options. When these changes are requested, it can make things confusing for a small business owner. However, when you use a third party payroll company, they have the extra knowledge and manpower that is needed for these unique payroll situations.
Reduction of payroll errors
Numerous payroll errors can also leave employees dissatisfied. The majority of employees never actually check their paychecks. They trust that the HR consultants know what they are doing and that they will be paid accordingly. Additionally, employees who are engaged and have a high sense of well being are 42% more likely to evaluate their overall lives highly and 7% more likely to report always recovering fully after illness, injury or hardship. When you employ highly engaged and high sense of well being employees, you will notice a difference in overall business success.
Creates a better overall brand reputation
Studies show that having a weak or poor employer brand can cost you job applicants. According to Glassdoor, about 11% of job seekers said they would decline a job offer from an employer with a bad reputation. Employee payroll accuracy and timeliness directly correlates with having a positive brand reputation. If you want good employees, you have to take care of them. Human resource outsourcing is the perfect solution for guaranteeing employee happiness.
Better understanding of business finances
Payroll is important not only for employee payment, but also to fully understand the business and its current financial situation. Many small business owners mistakenly calculate their success by the amount of dollars earned. However, this does not factor in rent, production costs, employee payroll, and any other costs associated with running the business. The most overlooked cost is that of employee payroll. When outsourcing payroll, you will be provided with a detailed document of costs. You will always know exactly how much you are paying and you can better evaluate your employee payment to business income ratio.
Ability to handle unique employee situations
As a business owner, you will find that employees come with a variety of unique situations. One employee wants to hold additional income each month to cover extra taxes. Another employee lives partially in another country, making taxes difficult to calculate. A third employee is applying for US citizenship and requires constant documentation. Hiring an experienced HR firm to handle these common employee problems will help to improve the efficiency of the business.
Many business owners spend hours and hours calculating and recalculating employee payroll. Minimal mistakes within the payroll can be expensive and can cost the business valuable employees. Outsourcing payroll is usually the better option. The benefits of a HR consultant include ensuring that everything is filed correctly, thus contributing to happier and more productive employees.