Releasing control and reaching out to a third-party administrator for help with HR and payroll solutions can be challenging for business owners. This is especially true for people who operate small companies. However, you can consider it a wake-up call if you are suffering from any of the issues described below for an extended time.
Your Business is Not Future-Proofed
Many business owners make the mistake of thinking they will get to succession planning someday, but time passes quickly, and they are busy with other things. Then they find themselves completely unprepared for the transition as they approach retirement or need to relinquish ownership of the company for another reason.
Taking a proactive approach to succession planning helps to set businesses up for success. Ideally, you want to start the process five to 10 years before you plan to leave the company. An effective succession plan should involve as many people from the company as possible.
For example, set aside time to discuss your ideas with senior management and receive input from them. Invest time in your associates to nurture them to take on more responsibility as you get closer to an ownership transition. If you feel that you just do not have the time or do not know where to start, consider scheduling a consultation with More Than Payroll to learn more about how we can help.
Employees Do Not Have Clearly-Defined Roles
Employees who do not understand what management and customers expect of them cannot possibly perform their jobs well. If you cannot honestly say that your leadership teams implement the strategies below, it could be that they just do not have enough time due to having to perform HR and payroll tasks.
- A company-wide strategic planning process that defines personal objectives and overall
direction. - HR management has created communication that informs every employee about how their job fits into the larger picture.
- A defined process for employees to set goals, receive consistent feedback, and have a performance review at least once a year. Not only should every employee have a clearly-defined role, but they should have the opportunity for personal and professional development as well.
Managing Your Payroll Takes Too Much Time and Money
Most new business owners underestimate how much time it takes to run payroll and assume they can do it themselves. The thing they tend to overlook is that payroll involves much more than issuing paychecks. Companies also need to submit payroll tax reports, withhold federal and state taxes, pay unemployment insurance and workers’ compensation premiums, and keep abreast of ever-changing payroll and employment laws.
You may not be a payroll expert, but we are at More Than Payroll. Outsourcing this time-consuming task to us provides you with valuable peace of mind.
Your Business is Suffering from Poor Retention Rates
Employee turnover is a frustrating and expensive problem. According to the Bureau of Labor Statistics, just under four percent of American workers leave their jobs each month. If your company has higher turnover than that, it is also experiencing significant financial loss. The amount can range from $15,000 for entry-level employees to more than $100,000 for senior staff members. Recruiting, interviewing, and onboarding all come at a cost that no company wants to keep incurring.
Simply Put… Your HR and Operations Team is Stressed
When your HR and operations teams feel like they have too much work and too little compensation, looking for opportunities outside the company is the natural result. This can put your business in a vicious cycle that is hard to overcome. Fortunately, you can retain your best workers by outsourcing your HR managed services to TPC. Please contact us to learn more about our services, request a software demo, or obtain a cost estimate.
