Best Practices for Making Your Business Run Smoothly with a Payroll and Human Resource Service Provider

Indeed, payroll and human resources altogether are a complex system. To you and your employees, it is mostly just about the salary, but HR functions go way beyond that. There are tons of processes involved and policies to keep in mind.

As owner or manager of a small business, you undoubtedly thought about just doing all of the human resource functions, primarily payroll, of your company by yourself. However, the fact that you are reading this article now is telling us that that probably did not work out as expected.

Indeed, payroll and human resources altogether are a complex system. To you and your employees, it is mostly just about the salary, but HR functions go way beyond that. There are tons of processes involved and policies to keep in mind.

Neglecting to fulfill any of the HR duties of your company can entail significant losses. Therefore, unless you are absolutely sure that you can handle HR while running your business without messing either up, it is important that you entrust HR to a reliable vendor who knows what they are doing.

However, the process does not stop with picking out some random company and paying their fees for running your HR department. Here are some of the tried and tested best practices for successfully running your business with the help of an HR service provider.

Mind first impressions.

The first step to selecting the best HR service provider is minding your first impression of them and trusting your gut feel. Outsourcing your payroll and HR functions is just like working or interacting with your employees, except that your selected HR service provider is bound to, in a way, represent you to your team. Thus, your chosen vendor has to make the best impression.

When looking for an HR service provider, pay attention to how their representative introduces their firm and negotiates because those, among other things, reflect their philosophy as a company and consequently, their future treatment of your business and your employees.

Work with a vendor whose culture fits yours.

By working with an HR service provider, you are basically allowing a total outsider to manage a huge chunk of your business. In this scenario, the last thing you want is for your employees to perceive a certain level of discord between how you and your HR department treat them.

You want an HR service provider that understands and shares your business philosophies and company culture. They have to uphold the same values and encourage the right employee behavior. That way, your HR operations will be in sync with how your employees are used to being managed.

Maximize technology.

One mistake that owners of small businesses commonly make is settling for outdated technologies to manage their payroll and other HR functions. Nowadays, nearly everything is being automated, and many small companies mistakenly think that such advanced systems are only for big firms.

Do not be one of these bosses, and find an HR service provider who has the best technology. By “best,” we definitely do not mean the most expensive or having the widest range of services. Ultimately, it still depends on the kind of business you are running.

For example, you may find automated or Internet-based scheduling helpful. If you have different branches in various cities, you may want to have an online portal through which your employees can find benefits-related resources, among others.

Finally, just because you have an HR service provider does not mean that you should leave all the work to them. Still, find the time to learn about new trends and technologies in HR servicing to make sure that what your provider is giving you is best suited to your needs.

Put everything in writing.

Small businesses are riddled with practices that can potentially turn out to be disastrous. One of these mistakes is making informal negotiations. Although your HR service provider is, in some ways, an extension of you, they are still an outsider.

Make sure that you have all grounds covered the same way as if you were working with suppliers or customers. Put everything in writing, and mind all applicable laws and regulations to avoid possible conflicts.

Ask for employee feedback and suggestions.

Your employees are the lifeblood of your company, and you need to satisfy them the same way you want to satisfy your clients. When outsourcing your payroll and other HR functions to a vendor, find time to ask for comments, suggestions, and complaints from your team.

Depending on the nature of your business, you can do this using a range of techniques: from the traditional suggestion box placed at reception or by the door of your office to an online anonymous feedback system. Your HR service provider may even offer this as one of their services, but it is always best to have a direct channel between you and your workers.

Be involved still.

Some owners and managers of small firms tend to leave their HR departments alone once they have contracted a service provider. This is a huge mistake. You have to remain involved and let your workers see and feel that you are on top of things.

Remember, your HR service provider is an outsider, and there will always be a possibility that you (you and your vendor) can clash, thereby confusing your employees or harming their interests. By staying involved, you are letting your employees see that you and your HR department are one and not separate entities between which they make choose sides.

Also, constantly communicating with your HR service provider about how things are being run shows them that you are still the boss and carefully evaluating their work.

A Final Word

The small size of your business is not an excuse not to be competent in terms of HR management. In fact, your business size should even motivate you to perfect your HR functions. With a relatively small company and maybe a few employees, there is no reason to offer mediocre HR services.

Therefore, entrust your HR department functions to a reliable team, and make sure that all hands are on deck. Give your employees the best, and watch your business flourish.

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