5 Reasons to Switch From a Payroll Service to An HRO
Posted by Mike Lopez on Sat, Jul 31, 2010 @ 11:48 AM
Most business owners don't realize what an HR Outsourcing company can provide. Here are 5 reasons your company should switch from a payroll service to an HRO.
Liability
With an HR Outsourcing company you have a co-employer relationship and with a co-employer relationship you get shared liability with those employees. Payroll taxes and unemployment claims are taken care of by the HR Outsourcing company. Therefore, the HRO is 100 percent liable for that part of it and the business owner doesn’t have to worry about those kind of liabilities. So there’s a shared liability that the employee now have a vested interest with the HRO.
Efficiency
The efficiency with a payroll service is you only have one company that just processes payroll. That’s all they do. With an HRO, you have an entire company of experts that handle payroll, benefits, worker’s comp, safety and human resources. This means you have one company that provides all of these services to you. So therefore, having one person or company handling all of these things, which is maybe a low cost, but it’s not necessarily as efficient as having a team of experts. You can have an entire company for roughly the same price or maybe even cheaper than your one or two employees internally or any outside payroll service. This provides a great deal of efficiency for business owners.
Expertise
The value of the expertise comes in with an HRO that has a number of employees with a great deal of experience in Human Resources, Payroll, Benefits, Workers' Compensation and Safety. Whereas some business owners, only have a couple of employees internally that have to learn as they go. They know a little about HR, safety, and worker’s comp. With an HRO, you have people that just do HR and that’s all they’ve learned and they’ve done it for a number of years. They have a great wealth of knowledge in HR. You also get a company that has worker’s comp experts that knows worker’s comp laws, regulations and restrictions. Also, you will have the same experts with payroll and benefits. You have people that have spent a great deal of time and years learning these things, so you don’t have to.
Convenience
The convenience is having one company you call for all payroll questions. You also have one company to call for any employee administration related questions. So any questions related to payroll, benefits, HR, worker’s comp, and safety have one phone number to call. Whereas before, if they had a number of different outsourced services they’d have to call five or six different numbers to get their questions answered.
But with an HRO you’re able to call one number and have one point of contact. Which then can be able to go to all the different departments within that HRO and be able to get your answer taken care of. So it’s very convenient to be able to have just one source to handle any type of employee questions.
Options
When you deal with an HRO, they have large amounts of employees under their belt and therefore they go out and get your company voluntary benefits. So employees now have access to discount theme park tickets, discount movie tickets, Aflac, and more services that a smaller company does not have the time to get these extra benefits. Services like these really do improve the workplace environment. Let's not forget that having options of multiple insurance plans, 401k plans and multiple dental plans provides companies an advantage to hiring a more skilled workforce. There’s such a great array of options when you work with an HRO. These different options for businesses are invaluable to look over.
Most business owners don't realize that an HRO or even administrative companies provide all of the services under one roof. If you have any kind of problems with payroll, human resources, benefits, workers' compensation or safety in your business, you should check into and HRO. Having issues in any of those items can be very expensive to deal with and costly. It could ruin your business.Why wait until you have that problem? Find an HRO or an administrative company and see if it makes sense for your business.