HOW SMALL BUSINESSES CAN INCREASE THEIR PRODUCTIVITY BY OUTSOURCING THEIR PAYROLL SERVICES

1. HOW SMALL BUSINESSES CAN INCREASE THEIR PRODUCTIVITY BY OUTSOURCING THEIR PAYROLL SERVICES The most highlighted characteristic of small businesses is manpower. These ‘organizations’ are operating on smaller scales and lesser budgets, which means they need to make do with limited means and still succeed. In a scenario such as this, it is not uncommon to find lines blurring, when it comes to departments and duties. Small business employees often take on varied tasks of other departments besides their own. It isn’t uncommon to see a technical guy writing content or an accountant helping out with record keeping. If an employee has an understanding of a subject and can manage tasks related to it, then he/she gets assigned to it irrespective of that person’s core department. The same goes for payroll and HR. Small businesses and Payroll process management Often, payroll and HR are the last departments in a small business to have dedicated teams, because the processes are deemed to be straightforward enough for existing employees to handle. Which isn’t the case. The crucial role that payroll plays in any company cannot be underrated, because this is the department that deals with all the important payments - salaries and taxes. Suppose 2 employees, who are already handling their own duties, are also managing payroll. Are they adept in it? Do they know the regulations and labour/tax laws? Are they proficient in salary and tax calculations? They need to be, to ensure timely payments, sustained productivity, and positive image, and safety from penalties or fines. www.paysquare.com

2. Outsourcing payroll for better productivity In the aforementioned example, the employees are managing an entire department besides their own duties. Taking care of taxes and salaries to be paid correctly and on time each month requires a lot of time and effort. And if employees are already dedicating their time to other work along with payroll, the productivity level goes down. To counter this, outsourcing payroll services is a good solution. Let’s take a look at the benefits of outsourcing payroll to increase productivity in small businesses. Reducing costs Outsourcing payroll services helps businesses reduce costs of labour as well as legal penalties. Wrongful or late payment of taxes attracts penalties and fines that can be costly for a small business that’s running on a limited budget. A dedicated payroll team can save this expense for you by filing taxes correctly. The same goes for your employee payments; payroll experts can help you find glitches in your employment plan where you are paying extra. This can help you make cuts such that there isn’t loss in value or productivity in the work. www.paysquare.com

3. Time management You can better manage and allocate time and efforts of your employees to their own duties, and the same goes for employees as well. Everyone can focus on the tasks at hand and give their undivided attention. Multitasking works, but not all the time. Single handedly focusing on one task always improves productivity. When payroll is outsourced, there’s a team of experts that takes care of the entire process seamlessly, while you and your employees can focus on duties that you undertake for growing the business further. Maintaining a happy workforce When do employees tend to lose their productivity? When they are unhappy with the company. And when are employees generally unhappy with the company? When they aren’t paid correctly or on time. Improper payment of salaries can lead to a negative in the minds of employees. Likewise, when HR and payroll departments are not in place, employees have no sounding board or grievance addressing system for their issues. All this creates a negative image about the business in their minds. And if employees aren’t happy with the company, it will definitely cause their productivity to take a backseat. Hence, payroll outsourcing helps. Employees are paid correctly and on time, are given different modes of payment to choose from for their salaries, and it shows that the company also values the services they are providing it. As a small business, the focus should mainly be on growing it further and getting more clients. Managing payroll is not an easy task; it takes time, lot of study, and is still fraught with the possibility of errors that are costly. Outsourcing puts this task into the hands of experts, who know their way around the process and regulations. This saves a lot of employee time spent in juggling two department duties. And also the possibility of making mistakes. All this, ultimately, leads to increased employee productivity, which is the most important factor for success. www.paysquare.com