What details are you looking for in your payroll service company?
Today’s post is by Mark Davis; Sr. Vice President of Operations and CTO at SafeSourcing.
One of the questions we are asked by many of the companies we work with is whether or not it makes sense to take Payroll Services through an eProcurement process. Our answer is “Yes”, however due to the sensitive nature of this service we add that for services of this nature, all of the factors, including price, need to be considered to make the decision for their company.
Today we will be looking into some of those areas that should be considered when looking to source payroll services for your company
The Fees – As stated above, cost is not the only thing that should be considered when it comes to services, however part of the cost that does need to be looked at is the breakdown on various fees associated with the service. Printing checks and tax forms, online access for employees and garnishment fees are just some of the fees that payroll service companies can charge you and they all need to be examined so that you know which fees apply to your company and which fees you may want to gather competitive pricing on.
The Experience – Experience in your industry is crucial, especially when looking at new vendors you have not dealt with in the past. Many times this type of information can be collected in an RFI or through basic research by an internal team or through a strategic sourcing partner if you have one.
The Service – Going hand in hand with a payroll company’s experience is their reputation for servicing their existing customers. In some cases basics about a company’s service can be collected through an RFI but many times in the course of due diligence and checking the references of a “short list” of vendors this information can be obtained. Asking about how accessible a company is when an issue arises and how quickly they return calls and emails are things that will help make the final decision in the end.
The Tools – With the increasing use of the internet by companies wishing to integrate 3rd party tools into their own portals or intranets, the tools a payroll service company provides are an important part of the value equation that is used to award business. Providing HR related documents, access to pay stubs and tax forms and other payroll related tools may just be the difference maker in the end especially if two or more companies are close in every other aspect.
Payroll services, like many services are more complex projects to run but with clear goals and defined decision making criteria established in advance, they can be very successful. For more information about sourcing services like payroll, please contact a SafeSourcing Customer Service Representative.
We look forward to your comments.