It only takes one shortcoming to derail a company’s progress. This often includes market research or employee morale, but it can also involve how you manage your business payroll.
Many companies leverage payroll outsourcing to streamline this obligation. Working with payroll provider options comes with benefits like improved efficiency and increased data security.
However, not everybody knows the qualities to look for in outsourced payroll providers. These details are crucial to consider before making your decision so you can find the best firm for your needs. Let’s explore the key information to keep in mind.
1. Data Security
This is one of the most important attributes to consider when searching for an employee payroll provider. Without the right security measures in place, you risk encountering catastrophic scenarios.
The average data breach cost small businesses a record $4.4 million in 2022. Situations like these are often impossible to recover from.
This doesn’t even include the damage incurred to your reputation. For example, let’s assume hackers target the payroll provider you work with and compromise all of your customers’ sensitive information.
Even though this incident wasn’t your fault, people would be far less likely to do business with you in the future. Not only will you lose customers, but your competitors will gain them. Choose a provider that takes security seriously and understands the consequences of lax data protection.
2. Scalability
As your company grows, so will its needs. Being unable to manage your payroll obligations can make expanding your business much more difficult. It can also lead to poor relationships with your workers, which carries the risk of them switching companies.
Ask your prospective provider how they accommodate companies that increase in size within short periods. They should have an actionable plan in place for situations like these.
3. Communicativeness
Is it easy to get in touch with them? Do you have trouble getting answers to your questions? Assessing situations like these can help you narrow down your list of potential options.
Ensure you understand when you can expect to hear from them and how they will reach out to you. You should also consider if they provide support outside of traditional business hours. Problems don’t always occur during workdays, and you may need assistance during odd hours.
It’s customary for payroll companies to offer some form of 24/7 support. This could involve speaking with outsourced representatives or chatbots. Regardless, you should be able to find a solution to your problem.
4. Experience
As you might assume, it’s in your best interest to find an experienced professional. While inexperienced companies won’t always fall short of your goals, they’ll be less likely to help you reach them. This can lead to a large number of issues, such as egregious oversights.
The last thing you want to deal with is problems you could’ve prevented. Ideally, you’ll hire someone who has at least a decade of experience in the industry. This will help ensure they understand the key nuances of your situation and provide stellar results.
5. Reputation
The company’s reputation plays a large role in what you can expect from them. Research online what other people have to say about the experiences they had.
Pay attention to reviews that mention professionalism, timeliness, and overall results. You should keep an eye out for how the company responds to criticism.
If they get defensive or aggressive when facing negative feedback, this is a sign you should search elsewhere. Otherwise, you risk encountering similar issues if you hire them. With enough due diligence, you’ll find someone ideal for your situation.
6. Specialization
Do they often work with companies like yours? This is an attribute you can’t overlook. They should have a robust list of clients with businesses similar to yours. Outsourcing your payroll is only a viable option if you choose a company that understands you.
There’s also something to be said about companies that have experience in a broad range of industries. This could indicate they know how to recognize and resolve unique issues and provide better levels of service.
7. Pricing
You often get what you pay for when outsourcing. It’s never recommended to choose the cheapest options you find. These will likely leave you dissatisfied.
However, you also don’t need to pay as much money as possible. There’s a point of diminishing returns where you won’t get a better experience relative to the money you spend.
Somewhere in the middle of the price range is likely the best option. This will help you reach your goals without stretching your budget. You can then invest this money in other areas of your business.
8. Features
Key features to consider include employee access, report management, and self-service functionality. Your needs may differ from those of your competitors, and they may be unique among companies in your industry. Regardless, keep searching until you find a provider who can satisfy your requirements.
Without access to the right features, you won’t get the experience you desire. This could also impact your efficiency. Choosing the wrong provider can be costly, so take your time when making your decision.
9. Flexibility
The best providers will be highly flexible. This is true regarding almost all of their attributes. To clarify, do they allow you to access information from any location? Can you download it in different formats?
How often can you expect them to update your information? Look for a provider that can adapt to your company’s needs. This goes a long way toward ensuring you get the results you desire with little issue.
Choose the Right Outsourced Payroll Providers
At first, finding the ideal outsourced payroll providers can be difficult. The good news is that it’s much easier than most people anticipate. The tips in this guide will get you started on the right track and help you avoid issues you would’ve otherwise encountered.
Cloud Bookkeeping understands that companies aren’t built on numbers alone. They each have unique needs, and we strive to deliver timely results that don’t sacrifice quality. You’ll learn more about how we can help when you request an estimate today.
