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Why HR Outsourcing is a Good Idea

by VENDIREX on 06/09/2015 - 02:57 pm |

Tag: HR Software

When you hire an employee, their hourly wage or salary is only a portion of the overall expense of keeping them on staff. Between required employer contributions, medical and retirement benefits, desk space and office equipment - not to mention training and supervision hours - a smaller to mid-sized company can ill afford more in-house employees than is necessary. In fact, the cost of having your payroll and human resources handled by an employee is almost always greater than when you utilize an HR Outsourcing firm for these services.

So, why don’t more companies take advantage of this? For one reason, it seems odd to have your staff’s confidential records someplace other than your office headquarters. And, maybe you think it might be more cumbersome to handle things such as raises, changes in tax deductions, and adding or deleting of employees from your records. In fact, the opposite is true.

Time spent sifting through records in a file cabinet, securing data in a worry-free manner, and trying to stay up on all the latest regulations is much more time intensive than you would think. Whereas, simply getting in touch with your HR outsourcing administrator - either via phone or within your management platform - is a breeze. Handing this sensitive process off to certified professionals, with their guarantee of accuracy, is something highly preferred in today’s fast-paced and competitive business environment.

Here are a few things to consider, when deciding upon a vendor who will meet your company’s HR outsourcing needs:

1. Be cautious when presented with sign up ‘deals’ or unusually lower fees than other competitors. Many times cheaper ‘buy-ins’ can mean higher ‘basic features’ or per check costs; so be sure to compare apples to apples.

2. How many accounts does the provider have? A stable payroll service should have at least several hundred clients.

3. Do they offer filing for local taxes, and what is that cost; and is there added cost if your payroll includes employees in additional states? Do they cover interest and penalties for any late filings?

4. What is their annual rate, including W-2s, and how long are the rates guaranteed to remain the same? Is there a set up cost?

5. What is the support system in place? How long does it take to correct an error, or to rerun a payroll if there are mistakes?

6. What are the provider’s most popular added features and what is their cost? What can they save you in the long run?

A couple of really good reasons to outsource your payroll are: if you have significant turnover of employees, or your staff’s hours vary between pay periods. Certainly when you have ten or more workers, the savings will easily become evident.