Payroll and human resources, the lines have blurred. They’re two things successful companies need, but they can also be two of a successful company’s biggest money sinks.
Take payroll: If a company has employees, they need payroll processing. But payroll processing is also expensive – a survey conducted by the National Small Business Administration in 2017 found one in three small business owners spent more than $500 a month on their payroll.
Human resources can also be a substantial cost for businesses. Bloomberg BNA’s 2017 HR Department Benchmarks and Analysis report discovered businesses with fewer than 250 employees spent nearly $3,000 per employee.
So where do your resources go, exactly? Given the complex, often interchanging roles payroll and HR play, it’s not easy to figure out where your resources go... or if the payroll and HR processes could be improved.
Follow the Money
Consider all the duties an HR department has. They include maintaining records on current and former employees, managing PTO, tracking employee skills and keeping an eye on disciplinary actions in the office. Meanwhile, payroll’s duties include accurate data entry, staying up-to-date on tax laws, tracking salary changes and processing for direct deposit or payroll checks.
All of these tasks take time and investment to do and if not evaluated, could be a point of leaking valuable resources. For a budget-minded employer, determining where time and money can be saved isn’t easy, especially when they’re trying to avoid morale-damaging moves such as salary reductions, furloughs and layoffs.
One way to determine where money can be saved is by:
- Considering how many hours are spent on each task over the year
- Comparing those hours to the company’s average hourly pay rate
But wouldn’t this effort cost even more time and money?
Calculate the Savings
SBS Payroll offers a complimentary payroll check-up and return on investment report for anyone interested in saving money on payroll and HR. We’ll look at every responsibility associated with your HCM processes and in a short time tell you how much money you could potentially be saving.
Please call or click on the link below to schedule a time with one of our HCM experts. After the consultation, we will send you a printable PDF report that you can keep and share.