You love everything about the new new business plan. The product. The employees you have hired. The location of the store. The goals that you have set. The one part of the whole process that has you uncertain is the payroll process. Although your accountant has explained the process to you, she also explained that many business owners understand the payroll outsourcing benefits. In fact, a third party payroll company might be the answer.
Whether you are a professional employer organization with decades of experience or you are preparing to open your first business, payroll outsourcing benefits can be very extensive. Deciding on outsourcing payroll allows a business owner to focus on the main goal of a business, whether it is producing a product or providing a service. Some owners even go one step further and make the decision to also outsource the needed human resources (HR) services. In fact, HR consultants can make the process of screening possible employees and completing all of the needed background checks.
Outsourcing Payroll and HR Tasks Can Help Businesses of All Sizes
Even a very small payroll mistake can be costly if it goes on too long. Whether it is the employer who owes a large number of workers back wages, or an employee is put in the difficult situation where they need to pay back overpaid wages, a small problem can get out of control very quickly. And while there are some business owners who can handle the payroll and the HR tasks, a third party payroll company is often the best solution. Consider some of these statistics:
- $11 billion is lost a year due to employee turnover. Outsourcing the tasks of having to find new employees can make the process more cost effective.
- 86% of companies with employee recognition programs cite an increase in worker happiness. A HR consulting firm can help implement the most applicable recognition programs.
- 36% of 1,400 executives surveyed felt the second most popular factor leading to a failed hire, aside from performance issues, is an improper match of skill, according to a recent survey by Robert Half.
- 30% of the same 1,400 executives surveyed felt that unclear performance objectives was the next most common factor leading to a failed hire.
- 75% of hiring managers use recruiting software or applicant tracking to improve their hiring process.