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5 Reasons Why You Need HR Support with Payroll

Updated: Sep 19, 2022

You may have heard the old adage, "penny wise, pound foolish." Often we all make the mistake of fixing small problems that are right in front of us while overlooking big problems right behind it, sometimes with disastrous results. The same can be said about the usage of HR with payroll. Employers can save a few dollars by avoiding HR support costs, but the consequences can be much more expensive. Let's take a look at 5 reasons why you need HR support with payroll.

  1. Labor is expensive. The single largest budget expense for most businesses is labor. For small businesses, labor frequently accounts for over 70% of costs. It behooves employers to do everything they can to maximize this investment. With HR Support you can more efficiently manage your employees with performance reviews, work violation tracking, absence tracking, certification tracking, asset management, employee benefits enrollment, and more.

  2. Bad relationships with employees are expensive. The average employment lawsuit costs $125,000 and up to a year to resolve. California businesses are particularly susceptible to employment lawsuits. If you operate a business in California there is a 40% chance you will eventually run into employment litigation. With HR Support you will be better familiar with proper employment practices that will both keep your employees happy and reduce your risk of an expensive lawsuit.

  3. Non compliance with regulation is expensive. The penalty for wage and hour violations under the Fair Labor Standards Act is potentially $10,000. There is a $7,000 potential fine for each Occupational Safety and Health Act (OSHA) violation. There is a $75,000 potential penalty for violating the Americans with Disabilities Act. The list goes on and on. With HR Support you will have the tools to understand your responsibilities to these laws and how to comply with them.

  4. Hiring the right talent is expensive. The average cost per new hire is over $3,000 between recruiting, interviewing, hiring, and training. And then 25% of new hires quit within the first year. With HR support and tools, a modern, proper, and legal onboarding experience will instill confidence in your new employees and existing workforce that they can trust their employer to be ethical with intent to do the right thing. Related article: Don't Scare Your New Hires

  5. Not being competitive is expensive. More and more businesses are adding HR support to payroll which means employees are coming to expect apps and access portals to their data. If you are not providing these features to your employees, studies show it may influence them to look elsewhere for employment.

So there you have it. Being an employer is expensive. Scrimping on features can save you a small amount in the short term but in the long run can cost many times more than that. To learn more about adding HR support to payroll, give us a call at (877) 297-5460. We'll be happy to answer any questions you may have.

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