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5 Signs It’s Time to Break up with Your Back Office Service Provider

Posted by Ray Gonder

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Apr 3, 2019 9:00:00 AM

5 Signs Its Time to Break up with Your Back Office Service ProviderYou’ve been working with your back office service provider for some time, but you’re not sure they’re still the right fit for your business. Maybe they were at first, but you’ve outgrown them. Maybe they made you a promise that seemed too good to be true, and it’s turned out that way.

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If you notice any of these five signs, it’s time to break up with the service provider you’ve been working with. There’s a better partnership waiting for you.

1. Your Back Office Service Provider Makes Promises But Doesn’t Deliver

If you’ve been having issues with service delivery, it may be time to part ways. Time and time again, you complain to the provider about an error or a task that isn’t completed on time. They promise you they’ll get it done or correct the problem.

Maybe everything operates smoothly for a week or two. Then the problem returns. A payroll error you thought was resolved happens again. Your remittances are sent out late. Training for new software is delayed.

While it’s understandable these kinds of issues will happen eventually, it’s disruptive when they occur on a regular basis. If your provider keeps making promises but seems unable to deliver, it’s time to break up with them.

2. You’ve Outgrown Their Services

This is a problem that is neither your fault nor your provider’s. When you first signed up with this back office provider, they were able to meet all your needs. Now, as your business has grown, they’ve become less able to provide services.

This could be an issue of scaling services. Your provider isn’t large enough to keep up with you, meaning you experience “growing pains” and service interruptions. It may also be an issue of the provider not offering the services you need.

In either case, it’s time to move on. There are other providers out there who can meet your needs readily. Rest assured someone else offers the services you require.

3. You’re Paying Too Much for Services You Don’t Use

This is a common problem for staffing firms that outsource any service, not just back office administration. Your contract may include services you don’t need, want, or use. As a result, you end up paying far too much for the services you do use.

At the time you signed your contract, you may have envisioned using these services, or perhaps the price was low enough to justify them even if you didn’t use them. Now, however, price increases or a lack of use have made it clear how much of a cost these services represent to your business.

As you head into your next contract, carefully review the terms to make sure you’re paying a fair price for the services you need and use. Try to find providers who will let you unbundle services so you get what you want.

4. You’ve Landed in Trouble with Compliance

One of the reasons you may be working with a back office service provider is to maintain compliance. If you’ve been penalized for non-compliance in payroll or another area, it could be time to break up.

If the provider flagged issues but didn’t suggest how you could follow up, they may not have the expertise you need. If the issues were missed altogether, it’s definitely time to seek out a new team, so you can have access to the experience and advice your business requires.

5. They’re Not Up to Date

Another reason you may want to consider seeking a new partnership is technology. Many staffing firm owners seek to work with back office service providers to leverage newer technology, such as the latest ATS or payroll software.

If your provider is using outdated technology, you’re not receiving this advantage.

If you notice any of these signs, it’s time for a new partnership. Do your research and talk to other service providers. The right one is out there.

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Topics: Back Office Service Provider

Ray Gonder

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