Definition and Benefits of Virtual HR and Payroll for SMBs
Small business owners are often responsible for a wide variety of responsibilities as they get their company up and running. It is not unusual to be wearing multiple hats at various points throughout the workday.
If you only have a handful of employees working with you, then the different tasks can generate lots of energy. It feels good to be involved in a growing, thriving business. Once you grow into a small- to medium-sized business (SMB), it is quite common to have a backlog of responsibilities begin forming.
At some point, you cannot do it all. The two areas where SMB owners struggle the most is with payroll and human resources. That is because these departments often require constant supervision.
If you are not in a position to hire someone to manage these issues on your behalf, then it might be worthwhile to consider the benefits of virtual HR and payroll services.
What Is Virtual HR and Payroll?
This option allows you to access a specialist in human resources and/or payroll through the standard outsourcing process. You would hire an individual or firm which offers services in the specific segments of your SMB where the responsibilities are starting to feel overwhelming. Most providers will provide the same support that you would receive if you hired someone internally for a full-time position.
Although every contract between an SMB and a virtual HR and payroll provider is unique, you can expect to see these services offered by most companies.
- Complete payroll processing and new-hire reporting.
- Local, state, and federal tax payments and filings.
- W-2 generation and employee file audits.
- Worker benefit implementation and administration.
You may also find providers that will audit your employee files, offer worker handbook development or updates, and assistance with the implementation of best practices for your industry.
Benefits of Using Virtual HR and Payroll
If the cost of receiving internal HR and payroll support seems too high right now for your SMB, then the benefits of using virtual services are worth considering. Here are the key points to review.
#1. You can reduce your overhead costs.
Whether you have one location for your business, or you operate through multiple offices, it may not be practical from a cost perspective to have an HR representative at each physical location. By hiring a virtual professional, you can provide the same services through a centralized office that can support everyone without compromising on the quality of the support you receive. It reduces travel costs and the need for office space since the services are offered remotely.
You could also think about implementing these three additional HR strategies as well.
#2. It improves the employee review process.
Employee reviews should be more than a once-per-year meeting that workers have with their supervisor. Their productivity assessments should be an ongoing process. People perform better when they have access to feedback about how they are doing. This process creates more internal engagement and motivation while helping you to spot problems sooner. Your virtual professional can implement this benefit immediately.
#3. You can improve your efficiency.
If you are trying to juggle HR, payroll, and everything else that owners must work on every day, then there is an excellent chance that you are missing the benefits of data collection and metric tracking in the workplace. Switching to a virtual professional will help your employees to self-service their benefits or questions instead of approaching you with their concerns. Your virtual professioal can then continuously review the data your teams generate to seek our new efficiencies, including places for potential automation.
#4. It integrates these services effectively.
Although HR is a department that is often seen as a problem solver, this core segment of your SMB is also responsible for employee recruitment, onboarding, and ongoing development. Your company will face future challenges in staffing and training for which you must begin to prepare to start today. By integrating these systems across every department through the use of a virtual team, you will create a process where these essential functions and services provide a confident outlook up and down the chain-of-command.
#5. You can be in more places at once.
Companies of all sizes are creating remote teams or working with freelancers because this structure helps them to be in more places at once. In the United States, there could be as many as 75 million people who are in the gig economy right now. Working with a virtual professional allows you to handle traditionally, offer benefits to these non-traditional employees, and still push forward with your mission and vision. Physical locations are no longer an issue because quality services are available from wherever you and your HR professional happens to be.
A growing business can help you to achieve whatever your definition of success happens to be. If you find that you’re spending more time on human resources and payroll needs, then it might be time to delegate some of these essential tasks. A virtual professional is often the perfect, cost-effective solution in this situation.