Too often, business leaders inadvertently complicate business processes that detract from streamlining operations and driving company growth. Some of the more common areas where this happens is in HR, payroll, and benefits administration, three functions of a company that should be kept in sync with one another. Richard Branson, a business owner of more than 400 companies, said, “Complexity is your enemy. Any fool can make something complicated. It is hard to keep things simple.”
As businesses grow, they may choose to outsource tasks to different vendors that promise to streamline operations, a “multi-vendor” approach. This is often the case for when a company seeks a solution for HR, payroll, and benefits administration. However, businesses soon find that juggling multiple vendors and interfacing with disparate systems leads to an increase in administrative work, while potentially creating inaccuracies and costing more than expected.
In the case of HR, payroll, and benefits administration, instead of breaking it up, businesses should look for a solution that provides a single dataset for the three entities. Here are three advantages, businesses can expect when they do so.
1. Reduce Workload and Streamline Administration
By utilizing a single data-set for HR, payroll, and benefits administration with an outsourced service that manages it, the need for administrative work decreases. By cutting back on the number of vendors, businesses can lower the costs of their workforce and devote company resources to driving growth rather than operations.
2. Mitigate Risk
To mitigate risk, a single dataset doesn’t need to worry about being compatible with another system. It universally manages all data, runs audits to check for any errors, and corrects them before it becomes a problem.
Oftentimes, companies rely heavily on technology to solve issues, and so they think that more technology vendors will decrease the chance of errors. Normally, technology can be used to run audits and prevent inaccuracies, but not all technology operates the same. When two incompatible systems are combined, the result could be minor or major errors on payroll, tax, and benefits calculations. Even small errors over time can result in a company not being compliant with federal, state, and local labor laws and bring about a fine and/or litigation.
Another benefit to a single dataset is the quick resolution of errors. With only one dataset, tracking where and how an error occurred is easier than digging through multiple systems and waiting on various call centers to find out who owns the mistake.
Keeping everything on one system allows business leaders to access all phases of their business's processes. It saves the time it takes to learn new technology and makes it easier to access information, employee time-sheets, or the reconciliation of premiums. With a single solution, transparent data can be transformed into actionable insight without the hassles of accessing multiple applications.
Simple Business Mentality
While some might think a brand new system is going to make things easier, successful businesses recognize that adding multiple vendors to HR, payroll, and benefits is just going to make things more complicated then it needs to be. To streamline operations, mitigate risk, and create transparency, a business should consider placing HR, payroll, and benefits all under the same system.
About the AuthorMore Content by Andrew Larsen