10 Sep 2018

Why Employee Engagement is Not Working Part 2 by Debra Fraser

In last month’s issue, we identified that: “The average person would rather have a great boss looking out for them than prizes, trinkets and parties”. Improving productivity is directly linked to employees’ engagement with… their boss! So, if you are a leader who is cognisant of the power of your role and who wants to make a difference, what is the single most important thing you can do to ensure you are part of the solution, and not the source of the problem?

Become more self-aware.

Unsurprisingly, many ‘bad bosses’ actually believe they are fantastic leaders. The problem is, they are significantly disconnected from their employees’ perception of them.

Remember Psychology 101: the Johari box? Created by two psychologists in 1955, this theory is a technique that helps people better understand their relationship with themselves and others. Each person’s self-awareness falls into four quadrants, as per the image below.

 

The challenge “terrible” bosses have is that much of their interactions fall in the “Blind” box. For example: during the busiest time of the day a manager appears on the production floor, shouting work-hard mantras meant to ‘encourage’ staff to hit their goals. He believes he is showing support for the teams ‘in the trenches’. Meanwhile, his staff perceives his ‘ranting’ as annoying, distracting and part of his typical ‘hands-off’ approach. The result? Staff absenteeism increases during peaks, productivity goals are missed, and there is unwanted turnover. Imagine the improvements in productivity and employee engagement if that manager were aware of the impact his approach had on his staff, instead of acting out of the blind box where everyone (including the company purse) loses!

But whose responsibility is it to make the manager aware? Is it the manager’s? Human resources’? The staff’s? Newsflash: staff will rarely volunteer feedback to their boss for obvious reasons, unless the leader genuinely solicits it and creates a safe environment for staff to share.

Leaders: Asking staff for feedback on YOU is the most important thing you can do to increase your own self-awareness and leadership effectiveness.

This week’s challenge: Ask your employees: “On a scale of 1-10, rate my leadership style.” Solicit the presence of a human resource representative to make it a ‘safe space’. Ensure you LISTEN and avoid any statement of self-defence. Then, each time you receive a rating lower than eight, ask the follow-up question: “What would I need to do differently to make that number a 10?” Don’t wait for your company’s annual employee satisfaction survey to show you up. Take the initiative to find out where your gaps are and then address them. In this way, you will have better served yourself, your staff, and your company.

Until next time, leaders keep lookin’ up!

 

Debra Fraser MBA, is CEO of Caribbean HR Solutions; a board member of the Business Process Industry Association of Jamaica; a member of the Human Resource Management Association of Jamaica, and Society of Human Resources Management. Please direct comments to dfraser@caribbeanhrsolutions.com or www.caribbeanhrsolutions.com

Read more

http://www.jamaicaobserver.com/career-education/fun-activities-and-prizes-do-not-the-engaged-employee-make-part-2_143704?profile=1096

27 Aug 2018

Launching Leaders: How to spot the leader-in-hiding by Debra Fraser

It is no mystery that one of our nation’s challenges is related to our ability to deploy a bench strength of leaders – leaders are in demand for public and private service, in social, business and even spiritual affairs. After all, if we are going somewhere (somewhere better), someone must lead us.

For those heading organizations, how does one go about discovering potential new leaders, anyways?  Do you look for personality, education, work ethic, passion, creativity? Or perhaps good looks? Years ago, a middle manager who reported to me commented on the humble car I was driving (a 1999 Honda Accord LX, which I still own and love!). This young aspiring leader said: “You know, you have to upgrade your car because it’s just not motivating me to aspire to move up the ladder!  You should be driving a bimma!” Needless to say, his expectation of what a leader should be initially took me by surprise. Perhaps we should add yet another characteristic of leaders: “Must Drive Fancy Cars!”  Ahhh, don’t we wish it was that simple…

Since before the rise of the Industrial Revolution, this matter of selecting leaders has been asked over and over.  Peter Drucker, known as the ‘founder’ of modern management point out that “productivity of work is not the responsibility of the worker but of the manager.”  So if you are a business owner, finding the next leader is crucial to the success and sustainability of your business.  Here are a few guidelines that can take the mystery out of your search for the next leader:

Potential leaders are marked by the following in their daily activity:

  1. They put Integrity first, and here’s what it looks like. Integrity is not an airy-fairy concept.  It means the candidate has a keen sense of what is right which is demonstrated in how he treats co-employees and the company’s customers.  H/she will naturally approach business decision making by weighing how to ‘do-right’ by the customer, the employee, the Company and the community. This habit by yield’s a consistent reliable approach and by it’s very nature engender TRUST, the very thing that keeps customers loyal, employees from leaving, and curries favor from stakeholders including those in the wider community.  That’s measurable value!
  2. They thrive on being the one held accountable; not necessarily the one in charge. I recently performed a stay interview with one of my own staff members, asking her to describe her ideal job and work environment. “Ideally, do you prefer to work behind the scenes, or as part of the team, or do you prefer to be the ‘front man’ who own the success or failures of projects and initiatives?” She shook her head vigorously at the notion of being the one in front, and I appreciated her honesty and candor (BTW, she is an excellent SME and a high-performer).  Her response is a reminder of the innate differences in passion and desire residing in each person.  Your next leader is the one who assumes responsibility whenever there’s a mess so that s/he can lead the clean up effort!
  3. They place a high value on Relationships. As the old adage says all “Business moves at the speed of trust” and if this is the case, relationships are both the fuel and the machine!  Let’s face it, Customer Relations, Employee Relations, Community and general communications are all based on managing relationships.  Looking for a Leader?  Look for the person who naturally keeps commitments to his peers, seeks for clarification and understanding when changes are rolling out, and who values the voice and experience of others, genuinely.

These are indicators that can be spotted in persons day-to-day routine.  They are internal characteristics that indicate who they are as a person in the NOW, so there is no guesswork in how they will act once they are given the title.  And less guesswork = less risk, which is always good for business.

 

Read more

http://www.jamaicaobserver.com/career-education/how-to-spot-the-leader-in-hiding_142421?profile=1270

16 Aug 2018

Why Employee Engagement is NOT Working! by Debra Fraser

Despite many companies’ efforts to create a so-called engaged workforce, surveys conducted in a variety of companies in Jamaica and overseas indicate that only 32 per cent of staff are actually actively engaged. But why is this the case?

Employee engagement refers to an employee’s emotional attachment and commitment to an organisation, which manifests in high productivity levels and low employee turnover. The fact is that people work smarter, harder and safer, and stay with a company longer when they are working for managers, rather leaders, who have earned their respect and commitment.

Over the past decade, organisations have chased this concept by implementing various engagement programmes, creating new engagement coordinator positions, and funding engagement budgets. I have worked with companies that give away prizes on a daily basis, over-rewarding basic duties like attendance and completion of core deliverables and throwing elaborate multimillion-dollar parties, but they still have a revolving door, losing between 30 per cent and 50 per cent of their employees each year. Despite the flurry of engagement activities, employee’s emotional attachment to the organisation have not improved. But why not?

The answer is that employee engagement is an outcome, not an activity, so fun activities and prizes won’t do the trick. Throwing activities and cash at a problem is not likely to make it go away, any more than watching exercise DVDs and buying new spandex is likely to make you lose weight. (Trust me, I’ve tried it.) The first step towards improving engagement is to properly diagnose the root causes in the work environment. Time and time again, many root causes point back to gaps existing in the leadership fabric of the organisation. Leadership is the single most important lever and catalyst in improving employee engaging levels! This is the missing link!

Having administered several employee engagement surveys in a variety of companies in Jamaica and overseas, I have found that regardless of size and industry, the correlation is the same: High satisfaction levels with immediate supervisor = High employee retention = Higher productivity and profitability.

The truth is that companies would be better served to focus their attention and investment in ensuring that they foster an excellent leadership culture throughout all levels of the organisation rather than underwriting events, parties, giveaways, games and other gimmicks that frankly can come off as transparent ploys to buy employee loyalty. The average person would rather have a great boss looking out for them than prizes, trinkets, and parties. After all, people are motivated by people. People follow people. And yes, people quit people, not jobs!

So, if you hold a leadership position in your company, how can you ensure you are part of the solution and not part of the problem? We will explore the single most important thing you can do in our next issue.

 

Read more

31 Jul 2018

Got what it takes to be a manager? Part III by Debra Fraser

Last week we reviewed in some detail the first five of 10 management skills employers are looking for when selecting management talent. They were:

• Performance Management

• Supervising Others

• Conflict Resolution

• Emotional Intelligence

• Communication & Coaching Skills

For aspiring managers, perhaps the descriptions of the first five competencies were enough to scare you off. If so, that’s understandable and equally beneficial to establish a better appreciation for what you DO and DON’T want to do. I encourage you to chart your path on the often less-stressful road of the highly skilled independent contributor, aka the subject matter experts. Let’s do a deeper dive into the final five attributes. Remember to have a friend interview you and rate each response.

Team-Building & Motivation Skills

What methods do you use to motivate your team to perform well in the face of challenges? Describe the actions you take to ensure the dynamics of your team are positive.

Delegation

Describe how you share your workload. Give an example of when an important task had to be delegated — what criteria did you use to select which team member was given the task? How do you control the output without micromanaging?

Integrity

Give an example of when you were given instructions to carry out that were out of line with what you believe was the right thing to do; how did you handle it? Give an example of an area in which you believe you compromised your integrity, and what steps have you since taken to grow in that area?

Resource Management

What scope of resources have you been entrusted to manage? What methods and processes do you employ to ensure the resources are efficiently managed? When procuring additional resources, provide examples of the criteria you use. Describe a time when resources were mismanaged. What was the impact and what did you learn?

Subject Matter Expertise

Describe the skills and functions in which you are an expert. What steps did you take to master the skill and how do you maintain your edge? Have you been involved in training others to become experts?

 

Once you’ve been rated on the 10 management skills above, take a look at those on which you scored lower and make them your personal development goals. How? By seeking out new experiences that demand these skills. This can include attending seminars, reading multiple books on the topics, asking management peers for their advice, and seeking out projects at work and in the community. The more experiential your learning is, the more you will learn and grow. And remember, attaining higher goals takes time and focus, so take your time to enjoy each exercise and the journey on which you have embarked. Managers bear a heavy load but the intrinsic rewards are greater, so never become too busy learning or managing that you can’t enjoy the ride.

Until then, Leaders Keep Lookin’ Up!

 

Debra Fraser, MBA, is CEO of Caribbean HR Solutions and is a member of the BPIAJ, Human Resource Management Association of Jamaica, and Society of Human Resources Management. Direct comments to dfraser@ caribbeanhrsolutions.com or www.caribbeanhrsolutions.com

 

Read article

http://www.jamaicaobserver.com/career-education/got-what-it-takes-to-be-a-manager-part-iii_139850?profile=1270

 

14 Sep 2018

What should I put in my employee handbook?

In our previous article, we looked at why should I create an employee handbook. This week we want to look at what should be included in an Employee Handbook.

Here are a few topics should be included in an employee handbook:

Introduction – Begin the handbook by describing your company’s history and business philosophy.

Hours –  State the normal working hours for full-time employees, rules for part-time employees, and how overtime compensation can be authorized for those entitled to it.

Pay and salaries – Be clear on how you set pay and salaries and how you raise them. Also, explain any bonus programs.

Benefits – Explain the rules relating to benefits, including vacation pay, sick pay, unpaid leave, and so on. For programs run by an outside provider, such as health benefits, other insurance benefits, and retirement benefits, refer employees to the official plan documents that explain the rules.

Drug and alcohol abuse – Many businesses have a policy prohibiting employees from using drugs or alcohol in the workplace. Some require drug testing; some offer to help employees deal with substance abuse through counseling or employee assistance programs. Include this information in your handbook.

Harassment – Use your handbook to remind employees that sexual and other types of harassment are illegal and violate your policies. Let them know that you will not tolerate unwelcome sexual comments or conduct and that you will treat any complaints of harassment seriously. Specify how and to whom an employee can complain of harassment, what procedures you will follow to investigate complaints, and what actions will be taken against harassers.

Attendance – Emphasize the importance of good attendance and showing up on time. Explain that numerous unexplained absences or repeated tardiness can be a basis for disciplinary action or even firing.

Discipline – Explain the types of conduct can get employees in trouble — for example, theft, violence, repeated performance problems, or fighting. Be sure to let your employees know that this is not an exclusive list and that you always reserve the right to decide to discipline or fire an employee.

Employee safety – State that employee safety is a major concern of your business and that employees are expected to follow safety rules and report any potentially dangerous conditions.

Complaints – Let employees know what procedures they should follow to make and resolve complaints. Designate several people in the company to receive employee complaints, and state that there will be no retaliation against any employee for filing a complaint. Having — and enforcing — a written complaint procedure can help shield your business from liability if an employee later sues for illegal harassment or discrimination.

Electronic communications – Include your company policies on use of email, the Internet, social networking sites, blogs, and so on. Because you may have to read employee communications (for example, if one employee accuses another of sending harassing email), your policy must tell employees that their communications may be read and are not private. If you monitor employee communications, say so.

Workplace civility – State that employees at all levels of the company are expected to treat each other with respect and that the success of the business depends on cooperation and teamwork among all employees.

Do you have a company handbook? Have you reviewed it recently to ensure your policies are updated? Do you need help creating an employee handbook?

Caribbean HR Solutions is Caribbean’s premier HR Outsourcing company providing your HR needs. Email or Call us today for assistance with updating or creating your employee handbook or any other HR related service. Contact us at 1-876-971-7632 or sales@caribbeanhrsolutions.com.

 

Taken from

https://www.nolo.com/legal-encyclopedia/employee-handbook-benefits-30207.html

06 Sep 2018

Why should my company create an employee handbook?

An employee handbook is a great manual to give to new and current employees so that they understand the company’s mission, values, and norms. It will outline for the employees the company expectations in every aspect from the dress code to employee benefits to conduct policy. Creating a company employee handbook will have many benefits for your organization.

Here are five reasons your organization should have an employee handbook:

  1. Introduces your Employees to your culture, and values

The employee handbook will serve to introduce these employees to your company culture and will help them to determine where they fit in. This will aid in creating a sense of pride and belonging, which allows employees to become more productive in a shorter period of time. For the employee, this aspect of the handbook will answer questions such as

“How did the company get here?”

“How do we set ourselves apart from others?”

“What are the company interests?”

“How can the new hire become integrated into the company culture?”

 

  1. Informs employees of the company expectations

The handbook will provide a clear outline to the employees of their responsibilities. In addition, the handbook will also guide the employee as it relates to the companies policies and procedures. These include (but not limited to):

  • The procedures for requesting time off or a holiday.
  • Procedures for unscheduled absence (sickness), whom they should contact, and what the timing should be.
  • The key people in the company to turn to if they have any questions or concerns.
  • Expectations regarding employee behaviour
  • Employee dress code (e.g. uniform or casual Fridays)
  1. Ensures key company policies are clearly and consistently communicated

The handbook should accurately inform your employees about your company’s policies regarding employment, conduct and behavior, compensation and other policies and procedures that they should follow. It will serve as a referenceable resource for managers when answering questions or making decisions by ensuring that they remain consistent with existing policies and procedures.

  1. Informs employees about their benefits

Does your company offer paid lunch breaks, health insurance, paid maternal leave or any other benefits to employees?  The employee handbook will ensure that employees are aware of the benefits that are available and eligibility.

  1. Provides a defense against employee claims

For many employers, the challenge of a lawsuit from current or former employers is a real possibility. Once this challenge occurs, however, one of the most important documents that the employer can present to their attorney is a copy of the handbook. A well-written handbook will demonstrate that the company would have exercised “reasonable care” towards its handbook. The employee’s signed acknowledgement page of the handbook will show that the employee had an opportunity to familiarize themselves with the organization’s policies, a chance to ask related questions, knew whom they could turn to for help within the organization, and agreed to follow the terms and conditions of employment set forth by the organization.

 

Do you have a company handbook? Have you reviewed it recently to ensure your policies are updated? Do you need help creating an employee handbook?

Caribbean HR Solutions is Caribbean’s premier HR Outsourcing company providing your HR needs. Email or Call us today for assistance with updating or creating your employee handbook or any other HR related service. Contact us at 1-876-971-7632 or sales@caribbeanhrsolutions.com.

 

30 Aug 2018

Why should I use an executive recruiter or an executive recruiting firm?

Many companies take advantage of the services offered by executive recruiters and executive recruiting firms to aid them in finding high-level candidates. Executive recruiters are skilled specialists in the recruiting field who can find and fill those critical management level positions. But why should I use an executive recruiting firm to fill my executive level roles?

Here are four reasons you should use the services of an executive recruiter or an executive recruiting firm.

  • Executive Recruiters have a network of contacts

Executive level candidates are scarce and the positions are usually hard to fill. Why? Many executive level candidates are not actively job-hunting. They are typically already gainfully employed and might not be thinking about a new job. This thus not mean, however, that these candidates would not be open to a new opportunity. They would be open the opportunity was available. In-house human resource departments have a limited number of contacts when compared to a wide net that is available to an executive recruiter. Executive recruiters know what is happening in the employment marketplace and the client’s industry and are better positioned to make calls and contact with the right candidates for the role.

  • Executive Recruiters weed out the “Bad” candidates

Once you post a job advertisement, be prepared to be bombarded with many unqualified candidates that will email, call or message on LinkedIn at the office. No matter the method that is chosen, the one thing that is in common with these persons is that they are not qualified for the job. Your company’s HR department being occupied with the influx of resumes and applications will struggle in making any substantial progress in its search for qualified candidates in addition to keeping up with their everyday tasks. The Executive Recruiters will trim and narrow down all applicants that have applied, and provide you with the three best-qualified candidates for the role.

  • Executive Recruiters are Confidential

Some job openings that are available for organizations can leave them particularly vulnerable, thus requiring a certain level of confidentiality when filling that role. Whether it is an existing position that is to be filled or a newly created position due to a new market opportunity, the process must be kept confidential from either the existing job holder or from the client’s competitors. This confidentiality is important in keeping everyone unaware of any management shake-ups, new products or new market initiatives. Search consultants value the highly sensitive information they become privy to during the search process. They are acutely aware and respectful of their client’s vulnerability which would be reflected in the recruitment process from advertising to screening.

  • Executive Recruiters save Time and Money

Steve Viscusi in his blog identified that “the benefit of using an executive search firm can be weighed against the cost of preparing and executing an advertisement/recruitment campaign, screening and qualifying candidates, and operating without a needed employee for an extended length of time compared to the relative insurance of getting the right person for the job.” As discussed before your company’s HR department can be filled with resumes and applications taking time away from everyday tasks.  Mark Wayman in his blog post asks these critical questions “Would you rather run the business or sort through the resumes of unqualified candidates? Is it worth it to have an Executive Recruiter save you a hundred hours of interview time by providing the three best candidates? If you hire the wrong person on your own and they leave after six months, how much does that cost? In the long run, it is more cost-effective to hire the right person the first time around.” Using executive are an investment in the improvement of the quality of an organization’s managerial personnel and thus an improvement in the organization’s productivity.

Caribbean HR Solutions has a team of experienced executive recruiters in Jamaica that will help you to fill those management level positions. For more information feel free to contact us at 1-876-971-7632 or email us at sales@caribbeanhrsolutions.com.

 

23 Aug 2018

Benefits of Workforce Management Outsourcing?

The most important investments organizations can make are in their people. Progressive organizations understand the importance of establishing best practices across their enterprises. However, when it comes to tracking, managing and paying a large, remote workforce, the best practices model gets compromised by administrative complexities and unnecessary waste.

If your employee scheduling, time collection, payroll and HRIS processes are draining key resources and costing your organization more than they should, it’s time to look to the marketplace for solutions.

After years of struggling with managing workforce and payroll service and other additional administrative services in-house, many companies have learned that outsourcing makes business sense.

There are a number of reasons for this paradigm shift:

  1. Lowers business expenses by reducing labor costs.

Automating and outsourcing workforce management processes results in fewer responsibilities for a business to have to worry about. This eliminates the need for unnecessary labor, such as bookkeeping or administration and allows the business to invest their money where it really counts.

  1. Helps businesses to minimize liabilities.

With constant changes in labor laws and regulations and the intricacies of processes like tax filing, it becomes nearly impossible for smaller businesses to stay abreast of every detail involved. Noncompliance can become a huge problem for businesses, costing them thousands of dollars in penalties and legal fees. However, businesses who outsource these processes can breathe a sigh of relief knowing that their service providers stay well-informed with all current laws and regulations to help them remain in compliance.

  1. Increases overall workforce productivity.

Outsourcing workforce management processes enable staff to concentrate on the core of their business’s success by freeing up their time from unnecessary tasks. With increased flexibility, a business can worry less about making sure things like payroll are processed on time and focus more on strategic initiatives that can improve their bottom line.

  1. Allows businesses to take advantage of service providers’ expertise and knowledge.

There are no better experts in the workforce management field than skilled, regional service providers. Equipped with tools and other valuable resources, they serve as local specialists to their clients. Automated workforce management platforms provide a great solution for routine tasks but service providers offer an extra advantage by giving professional insight and tailoring solutions to the specific needs of a business.

 

Caribbean HR Solutions is the premier provider of Workforce Management Services in Jamaica. For more information contact us at 1-876-971-7632 or email us at sales@caribbeanhrsolutions.com

Read more

http://www.mosaichcm.com/resources/blog/4-reasons-businesses-need-to-be-outsourcing-workforce-management-to-a-local/

 

26 Jul 2018

Why Company Morale is Important

Company morale is how an employee feels about their workplace. This relates to their feelings about their managers, their long-term role in the organization, their benefits package, and the company culture. Many employers might argue that company morale is not important as long as the work is accomplished. However, before we shut it down so easily it is essential to see how company morale actually relates to company productivity and as a result company profits.

Is Company Morale Important.

The Gallup Organization in their analysis of over 10,000 business units and more than 30 industries found that individuals working at companies that receive regular recognition and praise showed an:

  • increase their individual productivity
  • increase engagement among their colleagues
  • are more likely to stay with their organization
  • receive higher loyalty and satisfaction scores from customers
  • have better safety records and fewer accidents on the job.

In addition, it found that for employees that are “actively disengaged” work cost the U.S. economy between $250 and $300 billion every year in lost productivity alone. When you add workplace injury, illness, turnover, absences, and fraud, the cost could surpass $1 trillion per year. Low company morale is therefore very expensive

So How do I increase company morale

In general, different individuals are motivated by different things, and it will be difficult to try to motivate each individual based on their distinct motivating factor. However, Culture IQ has identified some of the recognized techniques that motivate nearly every employee:

  • Celebrate employee accomplishments—When you appreciate someone’s efforts—whether it’s a successful project launch or working through the weekend—they tend to better appreciate the work back. Making someone feel good about their contribution is one of the most effective ways to motivate an employee.
  • Encourage team bonding—Successful companies offer fun perks that let employees form personal bonds while letting them take a break from the day-to-day. If you have a small team, you could buy pizza for everyone on Fridays and take a long lunch together. Some companies throw lavish quarterly parties, while others host team events like scavenger hunts or game days. It doesn’t have to be complicated or expensive. Even a simple happy hour gives your team a chance to bond and unwind.
  • Give autonomy—Empower employees to think and take action by themselves. When team members are encouraged to steer the direction of their work, they tend to feel more invested in the end result. Most employees feel like their manager has to give permission for every single decision. Not only does that lead to low motivation, but needlessly slow progress. So let your employees set their own goals, accomplish their own projects and—ultimately—feel pride for their own wins.
  • Reward employees when the company performs well—The most successful compensation programs give all employees a reward when the company sees financial success. This could be in the form of a bonus or equity package, as long as the employee sees that their work directly has an impact.
  • Promote healthy work-life balance—As much as possible, organizations should be flexible around commitments like family emergencies, doctor’s appointments and weekend plans. These small gestures make a big difference in how employees feel about the workplace. It also results in team members coming in on a Monday refreshed and focused.
  • Listen—Your team is a wealth of information. Listen to their ideas, their problems, and their frustrations. Some CEOs meet with every employee each year, while other companies send regular pulse surveys so they’re always in the loop.

Low morale leads to poor cooperation, low productivity and increased turnover. It’s an undisputed fact: If your employees aren’t motivated or happy, your business will suffer and fail to reach its long-term goals.

On the flip side, strong company morale has the opposite effect. A happy office environment is one that attracts the most talented workers, and when those works are motivated, they’re productive and rarely quit. Simply put, When You Care About Your Employees, They Will Care About Your Business.

Read more

Read the Gallup study here

19 Jul 2018

The Real Cost of Not Outsourcing Your Payroll

Each and every business is different from the next: different in its size, different in its goals and different in its needs – but at the end of the day, payroll is something that every organization must manage.

When approaching payroll, there are two options: complete it in-house or outsource it to professionals. In running your business, you will undoubtedly be doing everything in your power to minimize financial risks, maximize your core business activity and out-do your competitors. However, turning down the opportunity to outsource payroll is often unhelpful to these aspirations.

Here are just a few reasons to consider outsourcing your payroll:

  1. You Are Incurring Direct & Indirect Financial Losses
  • You Have the Cost of Financing In-House Payroll
    Clearly, choosing to complete your payroll in-house comes at the cost of having your own payroll team. This practice is considerably expensive, as you must pay all the associated wages and benefits of employing the team, not to mention the other hidden employment costs, such as staff-retention and recruitment costs. If your business is reasonably small in size, there’s a considerable chance that the cost of employing this team would be significantly greater than the cost of using an outsourced payroll service as required.
  • You Must Purchase and Update Expensive Software / Technology
    One thing we can all agree upon is that payroll software is not cheap. When choosing to complete your payroll in-house, you will need to purchase and update the latest software for all your payroll needs. Such programs can include “benefits management” software, “time and attendance” management, as well as other services such as the automated sending of pay slips. By contrast, those who choose to implement payroll outsourcing have the privilege of a simple periodic payment. This means that their whole payroll function is taken care of in this one payment.
  • You Have the Cost of Providing Training
    Having your own payroll team comes at the cost of providing effective training. To ensure compliance, you must ensure that your payroll employees are always up-to-date with the latest government regulations and any changes in policies. Providing this training is time-consuming and costly. Those who choose to use outsourced payroll gain access to payroll experts, without having the worry or financial burden of providing the latest training.
  1. You Do Not Have Industry Experts to Ensure Compliance

As mentioned previously, payroll mistakes are all too common and all too easy to make. For example, you may assume that the overtime rate is 1.5 times the employee’s hourly rate, but this is not always the case. These unintentional mistakes can place your business in hot water. By contrast, those who choose to use payroll professionals have the peace of mind, knowing that the experts are always up-to-date with every last detail. Choosing to outsource payroll ensures constant compliance.

  1. You’re Wasting Valuable Time

I’m sure you’d agree that time is one of the most valuable resources. Completing your own payroll is hugely time-consuming, as it requires attention to detail and tedious re-checking of data every pay period. This process consumes efforts which could potentially be invested towards your business ventures. Any alternative which allows you to reclaim this time should be considered as highly worthwhile. Payroll outsourcing is so valuable as it allows you to reclaim this time, rather than spending it on administrative duties.

  1. The Knowledge Behind Your Payroll May Leave

Processing payroll is hardly an easy feat. Not only does it require a complex understanding of surrounding regulations, but also how to complete it for your particular business. In recruiting your own payroll officer or payroll team, you encounter the risk of the employee/s leaving, and this knowledge leaving along with them. Training and onboarding a new payroll officer for your specific business can be a mammoth task, often leaving your payroll processing in jeopardy while this retraining takes place. If you choose to outsource your payroll, you do not have to solely rely on your internal payroll team.

Depending on the size, structure, and industry of your business, you may find that some of these disadvantages do not apply to you, however, it’s likely that a majority of these setbacks will apply to your organization. Payroll outsourcing often offers a cost-effective solution to completing payroll alongside the added benefits of increased security, time-effectiveness and compliance, giving you complete peace of mind.

 

Read the full article here: