With more and more companies going global and needing to streamline their processes, hire better workers and improve their bottom lines, human resources is an essential piece of any companies core. For a long time companies have had internal human resource groups whose job it is to hire and manage employees, set up benefits and workers’ compensation systems, set pay grades and do many other things with regards to maximizing the firm’s return on investment with regards to its employees and their salaries. Salaries can get pretty high, especially when you’re talking about senior-level employees, so it is important that companies keep salary spending as low as it can go to keep the company running smoothly. In order to do this, payroll service providers started providing payroll services to companies looking to reduce payroll in a department of its choosing. Because human resources is a highly peripheral department, it would make sense that this is the department that should be outsourced.
With many baby boomers reaching retirement age and many other people looking forward to retiring in the near future, it is essential to have a solid retirement package in place for anyone that wants it and for anybody that is willing to earn it. Businesses that provide payroll services come in handy here. They can help your company set up the following programs within your company with regards to retirement, plus many other things:
- 401(k) plans
- SIMPLE IRA plans
- Executive deferred compensation plans
- Premium only cafeteria plans
The preceding types of services are only a subset of the capabilities that a payroll service provider has in its arsenal. If a company would like to focus more people and resources on product development, customer satisfaction and financial maneuvering it should highly consider using a payroll service provider for its retirement plans; usually setting up and administering these plans is done by human resources people but, as it turns out, many payroll service providers can do more quality work than human resource departments in less time and at a lower cost. This is a no-brainer!
Retirement packages have come to be expected from many people in the workforce because they have been offered for many people in the past. It is only fair that when someone puts in enough years to vest their retirement plan they have the right to receive a retirement package that will help them get through their retirement without having a shortage of funds. 401(k) plans are among the most common retirement plans for employees yet some companies do not offer them because they can’t afford them. In order to save money so you can afford to pay your employees during their retirement, consider hiring a payroll service provider to handle your retirement plan needs so that you don’t have to spend money on human resource departments and can trust that whoever is doing the work is doing a quality job.
