ATLANTA, GA / ACCESSWIRE / November 16, 2021 / Most corporate leaders are familiar with the concept of outsourcing in general. Yet many hesitate to outsource technical, sensitive, or specialized roles.
Why such reluctance to get creative with outsourcing? One barrier can be worries about losing control of external services and consultants. Though this concern isn't without its merit, it can be mitigated by choosing the right outsourcing provider or partner. So, too, can issues around sharing private information such as company, employee, or customer data. Finally, many small businesses are concerned about taking on additional costs.
At a fundamental level, outsourcing shouldn't feel like a last-ditch answer for executives and managers. Instead, it belongs at the top of any business's list of solutions. And the team from payroll and HR startup OnPay isn't shy about explaining why.
OnPay serves as the payroll software of choice for countless organizations and finance professionals like accountants (as well as expert reviewers like The Motley Fool's Blueprint and U.S. News & World Report). As such, the OnPay team has been able to introduce the concept of outsourcing to businesses of all sizes. Overwhelmingly, the response has been favorable as more leaders begin to realize that outsourcing presents several advantages beyond just filling workflow gaps.
1. Streamlined access to state-of-the-art tools.
It can be difficult for any company to keep upping its tech stack year after year. Buying equipment and investing in the latest software may sound good theoretically but it can quickly lead to tech debt as different pieces of the stack fall out of date. Besides, it can be hard to know which digital tools are here to stay and which are merely trendy stepping stones on the way to something greater.
The company's research shows that only about 30 percent of small businesses rely on the help of an accountant, and even the most popular finance software is only adopted by 60% of small businesses. That means four in ten businesses manage activities like payroll, accounting, and time tracking completely in house.
But outsourced consultants and cloud-based providers like OnPay can manage all the updates and technical changes for business managers.. They're both experts in their niche functions, and they have the ability to implement technical advancements without creating waves across a static tech stack.
2. Reduced need to upskill employees in all areas.
Workers should be trained on an ongoing basis, but even the best employee development program can't teach employees everything. Outsourcing takes some of the strain off of internal training programs by allowing companies to concentrate their efforts on building expertise surrounding their core product offering, rather than broader subjects.
As an example, a service like OnPay handles all the payroll tax calculations and deductions, which means internal employees don't need to spend time learning and updating things like local payroll taxes and minimum wage rates. Only about 50% of business owners feel confident they accurately calculate taxes they pay on behalf of employees, so outsourcing can also create more mental bandwidth. And getting help from outsiders with more subject matter expertise should also mean reducing mistakes and surprises.
3. Fast access to professional knowledge.
In addition to having expertise built into its products or services, outsourced resources can also hit the ground running right away. It's well-documented that businesses are having trouble finding candidates that check off all the boxes in terms of experience and education. Rather than wait through a process of recruitment and training, businesses that outsource can move forward immediately (and focus their recruitment on seeking people with the passion to learn, even if they don't have a depth of expertise yet).
4. Improved reliance on automation.
Software providers and systems like OnPay rely on advanced technology to automate and streamline repetitive tasks, even if they're complex. In addition to saving time, the upsides can include a reduction in human error and better access to large amounts of raw data.
As an example, one OnPay survey showed that small business owners who run payroll themselves spend an average of 18 hours a month on payroll. An outsourced, automated service could give them back half a workweek by handling all the payroll calculations, paying employees, maintaining records, and filing payroll taxes automatically. It even makes other job functions easier by producing detailed reports and sending new data to accounting software each time it's created.
In addition to spending half a week working down a long to-do list, handling things internally also means business owners use a lot of mental bandwidth on fairly menial tasks that are important, but far from central to the success of their business.
Not every role or function needs to be outsourced, of course, but companies that aren't outsourcing may be putting their organizations at a competitive disadvantage. By choosing the right outsourced solutions, CEOs and founders can focus on ambitious growth goals without overextending their teams-or overspending their dollars.
CONTACT
General Inquiries:
Elliott Brown
(877) 328-6505
media@onpay.com
SOURCE: OnPay
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