Human resources (HR) used to be a place where employees could visit – to ask a question, pick up a form, lodge a complaint, seek advice. However, the HR office, if one even still exists within a business, is probably a lot smaller than it once was.
Today, more and more businesses are outsourcing administrative duties that aren’t a part of their core operations. Offloading such work to an umbrella company is a good way to save both time and money. Umbrella companies can take up a variety of tasks, from payroll and taxes to benefits and recruiting, just to name a few. This allows their clients to put more focus on their strengths – and their daily operations.
If a business hasn’t already considered hiring an umbrella company to handle the majority of its administrative work, it might want to. Here are some of the top reasons why a business might find an umbrella company’s services beneficial:
Most businesses, particularly those with fewer than 50 employees, can save a significant amount of money by subcontracting administrative duties like payroll, human resources, recruiting, and tax preparation. Take payroll for example: The amount of time internal staff typically spends on payroll might be of considerable cost to the company. Think about expenses such as printing and distributing checks, creating tax documents, and bookkeeping. In most cases, an umbrella company can provide these services for less thanks to their ability to operate at volume with sophisticated software and intimate knowledge of best practices.
Moving administration tasks offsite actually frees up internal employees to focus on higher-value pursuits that grow and develop the company. For small businesses, it is essential to focus on what matters most and do what they do best rather than spend inordinate amounts of time on preparing paperwork, cutting checks, and other such tasks. When it comes to growing a business, it is important to have all hands on deck – an umbrella company can definitely allow for this.
Compliance is key
Every business owner knows that there is a complicated array of legal obligations that come with preparing payroll, hiring staff, submitting taxes, and other admin tasks. When a business outsources such tasks to an umbrella company, it will undoubtedly save money on legal fees, prevent tax penalties, and put compliance in the capable hands of a business that exists to understand such issues.
Convenience and functionality
Thanks to the outside services provided by an umbrella company, managers simply need to log into a web interface or telephone in the information the company might need to complete its administrative duties. Such companies also handle employee retirement plans, direct deposits, and other human resource responsibilities such as unemployment benefits and insurance.
Organizations that want to focus their time, resources, and money on growing the business should seriously consider working with an umbrella company to handle its administrative tasks. Umbrella companies allow businesses to continue to run their businesses in a more efficient, flexible, and organized manner.