What should I look out for when outsourcing my payroll processing?
Outsourcing payroll processing – or any HR function – is a question of cost and quality. An outsourced HR service should cost less than it would if you were handling it in house – if it doesn’t, you shouldn’t use it. But HR screw ups are the worst kind of morale killers in the work place, and there’s only so much cost cutting that can happen before you run a risk of a breakdown. To that end, the reputation of your HR partner is critically important. While there’s always going to be some grousing about HR in most organizations, if you’re hearing more than the fair share of complaining about an HR company, you should consider that a significant warning sign.
It’s also important to look for service level agreements in any contract you make with a payroll processing service or other outsourced HR process. If you are about to provide crucial data of your company, make sure the company keeps it confidential under all circumstances.
And remember, an HR company will protect you legally, but not emotionally. Your employees will still have you on the hook if anything goes wrong.
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