Whenever we’re looking to save time or money, our first reaction as managers and owners is to protect our most valuable assets – those areas that are the most closely aligned with our core business. Ancillary departments such as Benefits or Payroll, for instance, are almost considered “necessary evils” at times, though we don’t often turn to those disciplines for cost savings as often as, say, Manufacturing or Logistics.
However, “Payroll” is one of the most common business functions outsourced by both small and medium-sized businesses. Time consuming and complex, Payroll also requires comprehensive knowledge of both state and federal rules, as well as a considerable capital investment. This leads many companies to conclude that they’d be better off outsourcing Payroll, and redirecting those energies toward initiatives with revenue-generating potential.
Most companies typically first outsource high-volume, transaction-intensive functions (such as Payroll) opting to later add more value-based ones, such as Recruitment. Exacerbating the situation is the already-limited resources available at most small-to-midsize businesses. It’s no surprise, then, that Human Resources Outsourcing, or HRO, firms often first see these types of services as the first ones to arrive at their doorstep.
Take inventory of your businesses’ departments and processes. Look at the resources you currently have allocated toward your ongoing, and growing, Payroll requirements. Then, think about how you could grow the business by allocating those resources in other areas, such as marketing, or inventory control.
Ready. Set. Outsource!