Management

Hiring employees can help your business grow, but it also makes your job more complicated. Take payroll for example. It’s a headache that recurs before every payday. Payroll outsourcing may relieve some of that pain.

Processing payroll internally takes time and resources. Also, it’s easy to make mistakes. Statistics from the Internal Revenue Service show that approximately 40% of small businesses incur penalties for failure to comply with payroll requirements. Total fines paid by businesses are in the billions of dollars. That’s money that could be better spent.

Payroll outsourcing can keep you on the right side of compliance. And, it’s really not that expensive when you consider the time and worry it can save you.

How Payroll Outsourcing Works

In general, payroll companies take care of payroll administration for their clients. If you’ve been doing it yourself, you know it is a much bigger job than just issuing checks.

A payroll company handles all of the details to get employees paid. This typically includes check processing, direct deposit, W-2 and 1099 processing. They may also help manage employee benefits and other HR functions. But, where a business may find the most value in outsourcing payroll is in tax administration services.

Tax administration is an important part of the payroll process that many small business owners find difficult to manage on their own.

There are monthly, quarterly and annual deadlines for payment and reporting. Keeping track of those while you are trying to run a business can be overwhelming.  Also, regulations change on a frequent basis. It all makes a great case for payroll outsourcing.

Payroll Outsourcing Pricing

Pricing varies depending on the size of your business and the services that you need. It’s common for services to charge a flat monthly fee plus a per employee fee. Entrepreneur.com reports that basic payroll service pricing ranges from $.80 to $2.00 per check plus a base fee. Many companies will provide a free quote customized to your business’ needs.

So, is payroll outsourcing a good solution for your business?

If you need to focus on other areas of your business, payroll outsourcing seems like an inexpensive option.

Very few people go into business for the fun of payroll administration. By outsourcing payroll to a trusted provider, you can get back the precious resource of time. That allows you to put your energy into the areas of your business that need your attention. It also grants you peace of mind that your payroll administration is being done right.

Related: Knowing When To Outsource

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Ideally, hiring employees should allow you to focus your time and talent on the areas of your business that require your attention.

Unfortunately, it doesn’t always work out that way. Small business owners often find themselves spending more time (and money) training, solving problems or correcting employee mistakes than when they were operating as a one-woman shop.

The process of hiring employees may sometimes seem like a gamble. But there are some steps you can take to tip the odds in your favor.

Know what you need

Employees will bring the most value to your business when they have clear direction on what their jobs are. You may know you need help, but take some time to think about exactly what kind of help you need. Create a formal job description for the position. It’s okay if it includes the line “Other tasks as assigned by…” Your employee needs to know what your expectations are. If he/she has a list of ongoing responsibilities, it will save you the time and frustration of constantly having to tell him/her what needs done.

Temps Vs. Hiring Employees

If you’re not sure you need a permanent part-time or full-time person, you might consider using a personnel services agency to hire a temporary worker for times when you need some extra help. The benefits of hiring a temp are that the agency has already screened the worker for you and the agency handles the wages and benefits for the employee. You simply pay the agency for the service provided. But don’t assume that “temp” equals cheap. There is a cost for this convenience. If you really do need someone on a more permanent basis, trying to bridge the gap with temps may end up being more expensive than hiring employees on your own.

Hire Smart

When you post a job opening, you will likely be inundated with applications. Some will be qualified for the position. Many will not be. Others may be overqualified and be at risk for jumping ship the moment a better offer comes their way. Sifting through a mountain of resumes can be overwhelming, and setting up a parade of interviews is time consuming.

You need to bring only the best people in to be interviewed—preferably the top three applicants with the qualifications that you need to fill the job. To whittle down your options, set some guidelines on the front end of the process to help you decide which candidates will make the cut. Only pull resumes of applicants that meet those standards that you have established.

At this point, your main focus is filling the position, but you should be looking toward the future as well. While interviewing, try to pick up on cues that would indicate what type of employee the applicant would be. Does she seem to be just interested in a job, or does it appear that she is motivated by a challenge? Does the candidate seem to have a particular interest in what your business does?

Ask the right questions and be careful to not ask the wrong ones.  Avoid asking applicants illegal or inappropriate questions during the interview.

If your schedule and responsibilities don’t allow for you to take the time you should to hire the best person for the position, you might consider contracting an HR consultant to help. Many solo HR consultants are willing to take on the task of hiring employees, and can even help you onboard and train your new employees.

We all make mistakes, but when you are running a business, mistakes can cost you money. While you may approach big decisions with care to avoid a costly error, sometimes it’s the little things that really count.   Here’s my list of the top subtle business blunders. I have witnessed all of them, maybe even committed a few myself. If you have employees, the list is worth sharing.

“Celling” it short. I recently had a life insurance agent visit me on a sales call. I had scheduled to give him 30 minutes of my valuable time. As he began his presentation, his cell phone rang. When he reached for it, I assumed he was going to hit the switch to send the call directly to voicemail. Instead, he answered it. Rather than politely tell the person on the other end of the call that he was in a meeting with a client, he engaged in the phone conversation as if I weren’t in the room. From my end, it didn’t appear to be urgent. He was on the phone for about five minutes—five minutes of my 30 minutes that I had graciously provided to him.   He didn’t apologize when he hung up, just picked up where he left off. Needless to say, he didn’t make the sale. In that single mindless action, he made me feel as if I was not a priority. Why would I purchase from him? What could I expect from him in customer service if this is the way he treated me in the sales process? If you’re in a meeting with a real, living, breathing person, turn the cell phone off. If for some life/death reason, you must take a call, at least let your client know in advance that there is a possibility of an interruption and sincerely apologize for the potential inconvenience.

Driving Ms. Crazy. If your company car has your company logo on it, don’t do anything in it that you wouldn’t want your granny to witness.   Don’t cut people off in traffic or provide a “middle finger salute” to those that cut you off. Don’t park in a handicapped space if you are not legally able to do so and don’t text while driving. You get the idea. The same rules (and many others) apply when you are wearing your business’ logo on your clothing.

No cards left behind. This one still gets me once in awhile. Obviously, it is important to always have a good inventory of your business cards with you at business functions, but a valuable networking connection can happen anywhere. Don’t let an opportunity slip through your hands because you weren’t prepared.

Follow-up failure. If you make an offer or a promise to a new networking connection or an established contact, deliver on it. If you don’t, you may be leaving money on the table. So many opportunities are missed because the follow-up didn’t happen.

All the world is a stage. And we can see the plots play out via social media outlets on a daily basis. You’ve probably heard the news stories of people getting fired from their jobs for bashing their employers on Facebook, Twitter, etc. I recently heard the story of a business that lost a huge account because an employee was posting some pretty hateful banter on a social media site about one of the business’ clients. You know how it ends. The client found out and decided to do their very hefty chunk of business elsewhere.   The employee got fired, but it will take a very long time for the business to recover the revenue lost and rebuild its reputation with the lost client and others.

Building a positive reputation for your business takes time and effort. And while one small misstep may not destroy your business’ reputation, over time, subtle shortcomings can chip away at what you are working so hard to build.

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