Sam Makad is a business consultant. He helps small & medium enterprises to grow their businesses and overall ROI. You can follow Sam on Twitter, Facebook, and Linkedin.
Want to reduce ever-increasing business costs? Streamline your processes and decrease your number of employees, consider business process outsourcing. Head on to the article below to know when and how to outsource for your small business.
Running a business is hard work. Having employees join your business is an exciting part of business growth, but what happens when you need the work done and either can’t find the right employee or can’t afford the right employee? You have to either stretch yourself mentally to do the work or stretch the budget to hire someone to handle it, right? Wrong. You can outsource it.
Taking administrative tasks out of your payroll and instead paying a PEO company to do it can dramatically streamline your business. This is not a one-fits-all type of business. There are 987 PEO companies according to Digital Exits that can work for your business.
So how exactly does outsourcing streamline your business?
1. Gives You Time to Concentrate on Other Issues
Doing administrative tasks like payroll can be so time consuming. Mundane administrative tasks tend to get rushed through quickly because they are long, oftentimes boring, and there are so many other things that are much more important to be handling. However, payroll is something that can’t be done quickly, as you don’t want an employee to be paid incorrectly.
By hiring a PEO to handle your payroll, you are getting someone who is knowledgeable in their discipline and your needs are able to run your payroll without being a part of your payroll. This gives you the time necessary to handle the other important issues that may arise or projects that need completed.
2. Money Can Be Designated Elsewhere
One thing about administrative work is that there is a lot of it and hiring people to handle it can be expensive. Search costs, training costs, benefits, and annual increases are all part of employing people to work for you. That can equal out to a lot of money, especially as your business grows and their workload increases.
A professional employment organization can step in and fill those roles for a flat monthly fee that will be significantly cheaper than multiple salaries and benefits. An added bonus is they grow with your business, so if you grow at a large rate, your services can increase immediately.
Saving on administrative services gives more money towards sales and marketing so you are attracting new clients and can have continued growth. After all, the point is to grow your business.
3. Gaining Expert Knowledge Instantly
Do you look at the new set of rules and regulations for your industry that were just sent and shutter at the thought of having to digest and translate them before the deadline? You aren’t alone. Many business owners have a hard time keeping their head above water in growth and making sure you are adhering to the newest set of regulations can be daunting.
Outsourcing that task to a company with someone who specializes in that can ease your mind. You are getting expert knowledge without having to hire an expert to your team.
Additionally, a PEO company can provide training materials and offer employee training so you can remain compliant on the rules that are set for the business. No more chasing after employees, coming in late in the evening, on the weekends, or early in the morning to catch every shift and make sure they have been properly trained.
Sometimes a change in rules can be hard to follow. Having a PEO working with you can also give you access to the answers you need when you need them. It’s like having a business partner to collaborate with when you need answers without giving up a part of the company to do so.
4. Taking HR Out of the Equation
Let’s face it, beyond payroll, HR can be confusing. Making sure all the rules are followed and that employees are enrolled in benefits during the right time frame is essential but can be overwhelming to handle on your own.
Especially during times of open enrollments when every employee has the option to change their benefits, being well-versed in the benefits offered and able to explain them to an employee means a lot of hours spent out of your week.
This can lead to downtime in other areas of the business that may need your focus. Not to mention the time it will take you to read the documentation and make yourself familiar with all of the options.
Having someone to direct employees to can free you up and still meet all of the employee’s needs. This also means you have a person to walk you through your options and make sure your benefits are enrolled as well.
Streamlining your business through outsourcing is a smart move for business owners. It takes the work off of the owner, the financial burden of hiring people to handle it away, and gives you the experts your employees deserve to ensure everyone gets exactly what they need.
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