One of the long-running debates in business is whether managing and administering payroll should be a job for the human resources department or something you outsource to a payroll vendor. If you have a very small business, you might think you don’t have any choice in the matter, and so you have your HR person — or someone juggling several roles in the organization — oversee payroll. But payroll is challenging and time consuming, and that person’s time could easily be spent in other ways that would do more to support your business’s success and growth.
Consider these six things you could be doing if you weren’t worrying about the complexities of payroll.
“When an HR department no longer has to worry about the massive responsibility and paperwork involved in payroll administration, it can focus on the most significant role that HR should be tasked with: finding the best people for the right positions in the company, creating a supportive environment for employees, and retaining top talent,” says business and marketing strategist Susan Baroncini-Moe.
It’s not just recruiting that suffers when HR is consumed with making sure paychecks go out on time. HR employees also have a lot on their plate when it comes to keeping the company in compliance with local, state and federal regulation and employment laws. Implementing and managing processes that reduce the company’s risk related to noncompliance, employee negligence, or employee grievances are an important part of HR, says human resources consultant Janette Tarafa.
“Outsourcing payroll can be one of the smartest things you do as an HR professional, especially if you are a one-man or one-woman show,” Tarafa says.
All departments need to understand and implement your organization’s business strategy, and that includes HR. When your HR people aren’t dealing with payroll paperwork, they can spend time learning more about the business goals and objectives so they can develop and implement a people strategy to help achieve them, Tarafa says.
Your HR department can serve as champions for your company’s products, services, and brand, says Jennifer Martin is a business consultant and founder of Zest Business Consulting and Conscious Business Owner Camp. “An integral part of your Human Resources department’s duties is continually connecting your company with quality employees who embody your company culture. In addition, your HR team can help each improve training strategies by creating and administrating follow up surveys.”
“If you want to retain great employees show them you care,” Martin says. Your HR team can find free and affordable presenters to add value to the lives of your staff. “Bring in various providers such as yoga teachers, 401(k) administrators, work/life balance specialists and so on to enhance the lives of your staff.”
You can also put time and effort into employee training and development. Smart companies support their employees’ professional growth and help them learn new things and develop skills that will help them in their careers and in building the organization’s future.
When they’re not tied down by administrative tasks, HR can get employees involved in a social responsibility campaign, Martin says. “Discover opportunities for your staff to get involved as a group to help make your business a little more ‘green’ and make your community a better place.”
Outsourcing payroll allows HR to dedicate itself to business strategy. “It frees up time to focus on activities that directly impact the company, whether it’s operationally or on the bottom line,” Tarafa says. When they aren’t tied down preparing, processing, and distributing payroll for hours and hours every month, they can turn their focus to their mission.
Contact us to learn how easy and affordable it can be to outsource your company’s payroll processing.
HR Solutions is a human resources outsourcing firm based in Baton Rouge, Louisiana. We eliminate human resources headaches for businesses with 10 to 1,000 employees by handling their payroll, employee benefits, regulatory compliance and other staffing needs. Contact us to learn how we can streamline your company’s human resources function to save money and reduce risk.