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Outsourcing HR: How Small Businesses Can Save Big

Posted by Corinne Camara

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May 2, 2016 9:00:00 AM

Outsourcing_HR-_How_Small_Businesses_Can_Save_Big.jpgHuman resources can be a massive undertaking, whether you’re the head of a small business, the team leader of a start up, or even in charge of a massive corporation. It's never easy—so much is involved. It’s no wonder that more and more businesses have been outsourcing HR. Sometimes a simple decision can make a huge impact on how a company operates, effecting the brightness of its future. In this case, outsourcing HR could make a massive difference in your budget. Here are some reasons why.

Compare the Costs

Human resources and payroll are two of the most highly specialized, and expensive, areas of business. Because of that, only the largest companies with the biggest budgets can truly afford all the people they need to deal with those tasks effectively. Many smaller companies come up short, forced to make due with the limited resources that they have. This might mean one or two people working full-time to accomplish the job, or one person working part-time, which not only puts a strain on that one employee, but everyone else, too. For those companies that do make room in the budget for more people, they're sacrificing what little margin they have to deal with a peripheral. Not to mention the cost of hiring these specialized employees is also a cost many small businesses and startups can't bear.

When you consider outsourcing HR, you're looking in an excellent direction when it comes to cutting costs. Effectively, an HR provider is a third-party company that can handle any and all HR tasks that come their way for a single, agreed upon fee. Because this is their sole duty, they have all the resources needed to complete the job, meaning you get the expertise of a full team without the cost of one. You also save on training, since HR provider stay up-to-date on any and all changes in the field—which means they can handle anything you throw at them, regardless of policy changes and legal updates.

Save Your Resources

Your people are your most important asset and that's why, as a small company, you don't want to pile the duties of three employees onto one. As evidenced by any successful business, when you overwork an employee, the quality of work tends to suffer, and the same is true when it comes to human resources. When you have one or two people doing a job that can require a whole team of people, it can lead to mistakes and other errors that end up costing big in the long term—legally, financially, reputation-wise, and more.

One of the best aspects of outsourcing HR is the ability to leverage one of your most valuable resources—your people. Instead of being bogged down by paperwork, your employees can expand their know-how and challenge themselves by taking on more critical objectives. With the extra money and time saved, you can hire more talent and invest in your company’s growth. You can attract better employees by being able to offer benefits or have your workers focus on operations instead of day-to-day peripheral work. Outsourcing HR is a great way to make the best of your resources.

Risk Management

Staying compliant can be a difficult thing, especially as laws and policies seem to change monthly. A lot of smaller companies struggle with compliance, since they can't necessarily afford to hire a full-time lawyer to keep an eye on everything. This means the duty of remaining compliant tasked to an overworked human resources team and that's when costly mistakes can occur.

The best thing you can do for your company is to consider outsourcing HR—not just for the time and cost savings, but for the legal protection it offers. They're experts in the law and can ensure the best protection for your company.

What Are You Leaving to Chance by Handling Payroll on Your Own

Topics: Outsourcing HR

4 Things You Won't Need to Worry about When Outsourcing Payroll and HR

Posted by Karen McMullen

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Mar 23, 2016 10:30:00 AM

4_Things_You_Wont_Need_to_Worry_about_When_Outsourcing_Payroll_and_HR.jpgBy a large margin, the most complicated and expensive aspect of doing business tends to be payroll and human resources (arguably, it can also be the most frustrating as well). That's why so many businesses have started considering outsourcing payroll and HR, in a desperate bid for efficiency, simplicity, and compliance. There's a lot to think about when it comes to making a decision, but there's also a reason why a lot of businesses have already made the switch. We can highlight four reasons why outsourcing payroll will help ease the burden.

1. Navigate Complex Legal Requirements

Perhaps one of the most difficult parts of business is managing all the daily legal requirements, from payroll law, human rights and employment policies, health and safety codes, worker classification, taxes, and more. Additionally, it can all change dramatically depending on the province you operate within. This means a big headache for your payroll department—one that occurs on a regular pay cycle to boot. When you outsource payroll and HR, these are all concerns you can leave to a team of professionals who are constantly trained to stay up to date. This means for every change in methods, new tax filings, special requirements, and more, they have it covered and you don't have to worry about it!

2. Stay on a Budget

We know how expensive in-house payroll and HR can be, so how expensive is outsourcing? When you consider that many businesses simply don't have to funds to employ a full team to manage payroll, human resources, and legal compliance, it seems like there are few options but to get one or two people to try to manage it in-house. But outsourcing is actually a lot cheaper than one might think—for a simple monthly fee, all of it can be managed for you and because there are no hidden costs, what you see is what you get. This helps you stay financially on course and is definitely a great way to relieve your daily stress.

3. Save Time and Resources

Have you ever considered how much time human resources and payroll actually eat up? Whether it's a small team, a large team, or simply a single individual, a great deal of power, resources, and time goes into processing all that complicated information. When a company wants to focus on their own goals, it can be frustrating to spend so much effort on a peripheral aspect of the business that isn't related directly to growth. This is where outsourcing payroll and HR is perhaps most popular—when you delegate these important, but non-operational tasks to a third-party, you're freeing up not just your time, but your employees as well. That means they can spend their valuable time working more directly on the companies goals with a great deal more efficiency and efficacy.

4. Simpler Business Expansion

For those companies looking at expansion, there can be a lot of obstacles in the way. When you consider the amount of time and energy that goes into registering a business (which can take weeks or months, depending on the filing), the drawbacks can seem too intimidating, even despite the gains. Therein also lies another problem—when it comes to hiring employees from another country, it can become even more complex. So what does this have to do with outsourcing payroll and HR? Simple: many payroll providers can act as employers of record too, which means you can skirt a great deal of this trouble while maintaining full legal compliance. They'd hire employees on your behalf, pay them, and manage their HR. You can work directly with your new staff as you'd like. Let's be honest—in business, anything that helps you worry less is a great investment.

What Are You Leaving to Chance by Handling Payroll on Your Own

Topics: Outsourcing Payroll, Outsourcing HR

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