What are the Benefits of Using a Local Payroll Company?

As a business owner, you might think your company would be better off going with someone national rather than a local payroll company. After all, there must be a reason they're so large, right?

But it might surprise you that going local has some benefits the big guys can’t offer.

So, here's the thing...

Big payroll guys don’t want you to know that anything they can do, your local payroll company can do better, and with a human touch.

Here are the 3 Biggest Reasons you Want to Go with a Local Payroll Company

1. A Dedicated Representative – With a local payroll company, you won't waste your time. They know you, you'll get to know them, and that consistency of working with the same person for years helps you take care of things quickly. It also builds trust.
2. State Law Expertise – The nationwide payroll companies stretch themselves too thin. While they may understand federal laws revolving around HR compliance, they simply can’t keep up with the ever-changing local and state laws, and guess who is liable if your company isn’t compliant? I’ll give you one guess; it isn’t the payroll giant or their team of lawyers on retainer.
3. Easy Communication – If you're working with a company as big as ADP, you could be lucky even just to get another human on the other end of the call. You could be waiting for hours. Then, you may need to transfer to another department and wait again. It's virtually impossible to speak with the same person twice.

A Dedicated Representative

86% of consumers polled said that good customer service would turn them from a one-time client into a lifetime brand ambassador. The truth is people like to talk about stuff that excites them, and nothing beats free word-of-mouth advertising.

Customer service is where clients interact with your business the most; it’s where to set the tone. That is why a local payroll company can survive; they simply make customer service the number one priority. You can't compare to the consistency of working with the same person for years. You build a repour with them, so communication requires less and less effort. Before long, you’re telling them some stuff you’d like done while you’re celebrating a birthday party together one weekend.

A single point of contact for customer service is the difference between night and day. It’s the difference between trying to build a house without or with a blueprint. It is just such a relief to know that you always have a connection to a real person that is responsible for a part of your business. Adaptation is the key for businesses to survive and thrive, so having a dedicated representative is really a must, doubly so for small and mid-sized businesses.

State Law Expertise

On average, the United States alone passes around 8,000 bills into law a year. This is only on the federal level. On the state level, a Quorum study found that state legislatures introduce, on average, 23 times more bills than Congress does! This averages out to about 128,000 plus bills a year!

If you multiply that by how many states there are and how many customers each payroll giant has, we’re talking astronomical (6.4 trillion to be exact) bits of data that a huge corporate payroll giant has to process.

No wonder they struggle so much with this; who wouldn’t?

A local payroll company is a specialist. They know where to go and have a client list in proportion to what they can handle because it is the bread and butter of their business model. In truth, it is pure physics. A massive payroll company MUST operate as it does in order to serve the demographic it has chosen. The same is true for a local payroll company.

At the end of the day, you have to decide what is more valuable and practical for your business. Most likely, a large business would need a large payroll company to meet its needs.

For them, the bottom line is most important, and they don’t need to concern themselves with the details in between.

Small and mid-sized companies don’t have that luxury. You need to get it right the first time, every time. A local payroll company will be your ally, while a large one will be your biggest obstacle.

Your biggest obstacle should never come from your own organization or partners.

Easy Communication

Let’s face it, with a big payroll company; your account is simply not a priority. They don’t need you, and they know it. The big guys focus on the bottom line, which means they are underpaying their staff, overworking them, and typically have low retention rates.

This creates a revolving door for employees, making it more likely there will be an error in your account. A local payroll company is streamlined and values every customer because they need you!

You can also bet every staff member at a local payroll company wants to be there because they operate like a family.

The difference is self-apparent.

Here are some near guarantees when dealing with a big payroll company:

• When you call, you’re almost guaranteed to get a call center, phone tree, and/or automated response.
• The chances of you talking to the same person any time you need help is next to nothing.
• You’re guaranteed to have a lot of layover time. Time is not just money; it is the most precious resource we have.
• You could spend hours waiting to talk to a human.
• Automated menus make mistakes, especially if you have a thick accent.
• You aren’t a priority. Big business prioritizes big business. To a big payroll company, a small to a mid-sized company is small potatoes. 

And that's it!

As a business owner, you know that quick and clear communication can be the difference between thriving and surviving for small and mid-sized companies.

And now that you have learned about the benefits of working with a local payroll company, hopefully, you’ll be able to make the right decision for you. 

If you found this article informative for you and your business, you may enjoy reading these other articles:

• How to Choose the Best Payroll Company for Your Small Business
• The Pros and Cons of Paying Employees with Payroll Paycards
• Why Employee Printback Checks are Good for Your Business
• How Will the New York State Secure Choice Retirement Savings Program Impact Your Business?