Professionals in the HR management and payroll industry have always had challenges. This year is no different and the challenges grow as we approach the end of Q2.
Earlier this year, a survey by Bloomberg BNA and the American Payroll Association was conducted involving over 1,200 participants.
The results of the email survey might not be surprising to most HR and Payroll professionals. Among other findings, it was determined that taxes and wage and hour compliance were at the top of a list of concerns for 2017.
Taxes, Wages, and Hours, Oh My!
When asked what subjects were priorities as areas of focus, the breakdown looked like this:
- 83 percent identified taxes as a subject of focus
- 81 percent named wage and hour compliance as topping their list
- Wage deductions, such as child support, levies and garnishments, were cited by 75 percent
- At 43 percent was unemployment insurance
- 14 percent listed international payroll
Asked to rank certain payroll management issues based on potential challenges for this year, 32 percent of payroll professionals ranked multistate payroll tax compliance at the top of their list and another 25 percent chose wage and hour compliance.
Interestingly, only 17 percent felt that balancing costs while maintaining efficient payroll was a major challenge for 2017.
About two-thirds of the respondents said that their organizations invested in professional development for payroll personnel and included the payroll department in the organization’s overall strategic initiatives.
While only 30 percent of organizations invested primarily in outside services to implement payroll, it seems that smaller organizations are more likely to look to outsourcing payroll or HR management.
In fact, 40 percent of those working at companies with 101 to 500 employees reported that outsourcing was a priority. This is almost twice the percentage of organizations with 1000 to 5000 employees.
According to a news post at BNA.com:
Cost concerns are universal. Balancing costs was seldom seen as among the biggest challenges facing payroll in 2017—32 percent ranked it in the top two. However, the percentage generally held true for all organization, regardless of size, type or the number of states or countries where they conduct business.
For example, 34 percent of multinationals 32 percent of single-state organizations and 31 percent of multistate organizations cited cost control as a top-two challenge for payroll.
In addition, the survey found that organizations that operate in just one state were more likely to see major challenges in wage and hour compliance, federal tax changes and data security than respondents at multistate and multinational companies.
Looking Ahead From an HR Perspective
While HR and payroll professionals certainly should be concerned about taxes and wage and hour compliance, among other things, there is more to be considered.
The face of HR management is rapidly changing with the increasing role of technology, the Internet and “Cloud services”, as well as AI applications and other innovations.
According to Paul Struthers, Executive Vice President and Managing Director of Sage Canada:
Most small businesses and startups are switching to cloud-based people management and human resources solutions because it allows them to access employee data while on the go. Having a 360-view into your workforce is a lifesaver for small business owners who are juggling multiple hats. Being able to analyze data about your employees will not only help you gain better visibility into your company, but it will help you when planning for the future by streamlining your existing processes.
From recruiting and hiring, to onboarding and training, and personnel management and development, the tasks and roles of HR professionals is shifting and expanding. These are, consequently, the reasons why considering the benefits and advantages of outsourcing HR management functions are critical.
The Benefits of Outsourcing HR and Payroll Processes
Considering alternatives such as outsourcing is increasingly becoming a cost-effective and strategic option. Accuchex can help you in managing your HR needs, payroll processes, and staying on top of compliance demands.
At some point in the growth of your company it makes sense to consider other options for maintaining and managing the vast number of tasks and functions that fall under the HR department. While newer software and automation are certainly viable and beneficial options, it can often be far more cost-effective to outsource.
If you are considering outsourcing some or all of your payroll processes, give us a call. Let Accuchex help you in managing your HR needs, payroll processes, and staying on top of compliance demands. Feel free to reach out to us at 877-422-2824.