Exactly how can companies benefit from getting payroll, human resources (HR), and benefits administration help? We sat down to interview our Director of HR Services, Andrea Porter, to learn more about the challenges companies face in these areas. She also offered some insight from a business owner’s perspective regarding hiring outside help for critical administrative tasks.

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1. What types of companies can benefit from getting help with payroll, HR, and benefits? 

Very small employers with a handful of employees can use a program or their accountant to run payroll, but every company can benefit from the help of an experienced payroll provider, especially when it comes to human resources and benefits guidance. This is because it can be difficult to know, and keep up, with the laws and regulations. For instance, I know one accountant who advised their client to calculate overtime based on hours worked over 80 in a bi-weekly pay period, rather than over 40 in a workweek. That’s something really simple that caused a major wage and hour liability for that company. You want to partner with a company that not only understands wage and hour regulations but that can also help you apply those to your business practices.

2. How can getting help in areas like payroll, human resources, and benefits help a company grow from an owner’s perspective?

The bottom line is time and knowledge. Partnering with a reliable and experienced payroll company frees up administrative time and reduces administrative burden, allowing staff to focus on other areas of the business. Using an electronic timekeeping system keeps employees accountable for their time and can help the company identify areas for improvement in processes or efficiencies. Using a company that helps keep you in compliance in these areas also reduces the potential for liability from wage and hour claims. All of these things help set the stage for success in a way that might be difficult to obtain without outside help.

3. How can an outside company effectively know and understand the HR and benefits needs of a company?

Using an experienced outside company to help in these areas offers employers the benefit of an outside perspective. This can be very beneficial in several ways. When dealing with highly regulated areas such as wage and hour or employment law, the “way we’ve been doing it” might just get you into trouble. An outside company that deals with HR and benefits administration also knows the laws and regulations, keeping up with changes. This is critical to staying out of trouble. Additionally, you want the advantage of a company that works with businesses in a variety of industries and can apply laws and regulations accordingly.

Andrea Porter has over 20 years of experience in all areas of HR management in various industries including consumer electronics, technology, finance, manufacturing, and automotive industries. She now serves as the Director of HR Services for TAG and eBacon.

The material presented here is educational in nature and is not intended to be, nor should be relied upon, as legal or financial advice. Please consult with an attorney or financial professional for advice.