In the modern small business, the dream is administrative simplicity. The interplay of law surrounding taxes, employment, wages, and everything else involved in just maintaining a business entity is mind-boggling, not to mention the paperwork involved every step of the way.
Many business owners are turning to technology-first solutions that claim to simplify this complexity – but is that what’s really happening? When your business administration and compliance responsibilities are fully managed by technologies, there is a cost-benefit analysis to consider.
The Security of All-In-One HR
The variety of applications available to businesses claiming to simplify their processes is immense. Free trials, low fees, and feature packed – what could go wrong?
A lot, unfortunately.
The core issue with many of these applications is that they operate as stand-alone functions in your business. This means that they are managing their part of the business, but you lack an interconnected overview of every part – how payroll, benefits, and HR compliance come together is where many of your biggest risk exposures lie.
The Risks of Automated Compliance
Automated HR tools can take a lot of paperwork and confusion out of running a small business, but they are still only as valuable as the accuracy of the data put into them. If your compliance automation has incorrect data, you’re exposed to risks you’re not aware of – because your compliance app thinks everything is fine!
The Benefit of a Human Element
Having a human resources department that oversees your operations is not attainable for many small businesses. The result of this in many cases is that one or two employees are tasked with total HR management.
This can get the work done, but you are also at risk that these employees could find new job opportunities and leave you in a tough position. Budget constraints may also result in your business hiring on someone who lacks the experience needed to handle a full suite of HR management responsibilities.
The Value of People plus Technology
A hybrid approach that includes experienced technology developers and a team of business experts would be the dream, right? The computers do all the grunt work, and a business-savvy team fills the gaps and ensures everything important has been updated.
This has been the secret to our success here at CorpStrat. It’s not about the technology, it’s about how it’s being used. In order to get great HR, payroll, and benefits results, we set our clients up with an account manager, not an account in a call center computer system.
By assigning each business to one person who knows them in and out, we reduce the risk of incorrect data undermining the success of HR automation. Experienced brokers and managers keep your benefits, payroll, and HR responsibilities up to date.
If your small business needs a team of experienced payroll, HR, and employee benefits staff, call CorpStrat today about your next steps in 21st century HR management.