Staffing companies have many risks to worry about. Not only do they have to worry about bad cash slow, non-paying clients, and errors and omissions, but they also have to make sure that they are staying compliant with a wide variety of industry and government rules and regulations.
There are payroll and tax regulations to follow while paying your workers. There are employment regulations to follow when hiring, firing, interviewing, administering benefits, and everything in between. There are important human rights laws that cannot be ignored. And there are health and safety regulations that are necessary for keeping your workers safe.
In the course of a year, your staffing firm might need to comply with thousands of different regulations. Do you have what it takes to stay compliant? If not, consider outsourcing the responsibility to a back office service provider. Here are five good reasons to consider outsourcing.
1. It Can Save You Time
Compliance doesn’t generate revenue. Yet, it can take up a lot of your organization’s energy, effort, and time. Because there are so many different laws to follow for virtually everything you do, it can become a full-time job to stay up to date and make sure you’re following the law.
It demands continual oversight—new laws are constantly being put into effect while others are always changing. If you are unaware of, or ignore, just one regulation, you could be in a lot of trouble. Instead of spending hours upon hours every day looking up relevant legislature and keeping up to date on changing laws, you can outsource the responsibility to a back office service provider that has experts on staff who know the laws backwards and forward. This can free up your time so you can go back to concentrating on your core competencies.
2. It Can Save You Money
If you translate the amount of time you would spend on this function in-house into actual dollars, you’d come up with a hefty sum of money that you’re wasting. Sometimes, it’s just not financially responsible to spend time on such a time-consuming non-customer facing activity.
Additionally, the amount of money you’d save on HR and payroll technology, training courses, and seminars when you outsource can also add up.
3. You Will Gain Best-in-Class Expertise
If you want to avoid getting on the government’s bad side, paying costly fines and penalties and going through painful audits and lengthy lawsuits, you need world-class specialists handling your compliance function. But you might not be able to afford to hire experts on permanently. When you outsource, you’ll gain access to compliance expertise and experience, without the cost. These experts will always be by your side to ensure that you’re following the letter of the law.
4. You Will Receive Much-Needed Objectivity
One of the most valuable aspects of working with a third-party back office service provider is that your consultants will be unbiased and independent. You can get candid and honest advice about your current practices and a third party can also spot compliance issues, paperwork mistakes, and other errors that could hurt your company. When you’re too close to the action, sometimes you can miss critical issues within your own company.
5. You Can Get Peace of Mind
Compliance is a very stressful function. There are so many laws to understand, and many of them are nuanced and complex. It seems like the regulations are always changing, and that there are exceptions to the rules that you need to know, too. And the constant threat of employee misclassification, wrongful termination, sexual harassment, human rights violations, and safety violations can quickly turn your hair grey. When you outsource the function, you can guarantee compliance, so you can relax and breathe easy—it’ll just be one less thing that you need to worry about.