Bringing on contractors is supposed to make your organization more efficient–not slow it down. Managing contractors in-house, however, is becoming a demanding additional duty—especially for small business owners and startups. You need a way to keep costs down so you can focus on your core business. With this need for contract and payroll management, looking externally can be a beneficial solution. Outsourcing is becoming an increasingly popular way for businesses to
Here are five big benefits of outsourcing contract and payroll management to figure out if it’s right for your company.
1. You Get Access to Expertise and Technology
When outsourcing, your business gains access to expertise and technology—both of which are essential to growing your business. Typically, most business owners don’t have an abundance of free time to spend researching the constantly changing regulations, withholding rates, and government forms that come with contract and payroll management. This means your business can take advantage of the same available expertise that their competitors use.
Without expertise and technology, it’s difficult to keep up in a competitive market that heavily relies on such to operate efficiently. Gaining more business requires more administrative tasks and more employees to manage. With the right tools, you can stop the drain on your resources–and focus on your business.
2. You Save Time and Improve Focus
Trying to perform contract and payroll management in-house adds a number of administrative tasks to your daily responsibilities as an employer. Processing payroll, writing and delivering checks, calculating and paying employment taxes, preparing and delivering tax forms, and handling employee inquiries are all vital to your business, but imagine if you could use your employees’ time more effectively?
When you free up the time focused on these time-consuming tasks, your employees can better focus on strategizing, offering better customer service, following more leads, and closing more deals. Consider the possible revenue production when your employees can be put to better use—suddenly outsourcing your contract and payroll management to the experts sounds even more appealing.
3. You Reduce Costs—and Risks
Managing contracts and payroll in-house can be costly, so outsourcing can help save money to improve other areas of your business. If you’re working with contract staff directly, you have to consider co-employment risk. With a third-party managing your contracts, there’s no “grey area” in the eyes of the government. They handle rate and contract negotiation–and ensure your contractors meet all legal, health and safety, and tax requirements before they set foot on your site.
4. You Improve Accuracy
Contract and payroll mistakes are common for a reason; when a small business is working to stay on top of the numerous complications that can arise, it’s easy to let details slip through the cracks. Looking externally for your contract and payroll management leaves your work in the hands of experts who are much less likely to make errors…it is, after all, their specialty.
What can seem like a simple oversight can actually be a disastrous one. If a contract is misunderstood or payroll is mishandled, it can lead to unforeseen legal costs that your business may be unable to recover from.
5. You Know Your Contract Staff are Being Taken Care Of
Whether they’re contractor or full-timer, your staff are still coming to work and engaging on your projects–so you want to know contractors are being supported as well as you support your full-time team. A good contractor management partner handles the employment details–including answering your contractors’ questions about their contract, pay, expenses, and timesheets. They know who to call and you know they’re being taken care of. With a contract management team supporting both you and the contractor, together you can build your business.