Once upon a time, payroll was its own thing, as were human resources, benefits, talent management and time and labor. Each was a fully separate department with related but ultimately independent functions. No more. Today, payroll and HCM (Human Capital Management) functions are increasingly singular services entity. And if your payroll service bureau isn’t offering an integrated solution, you’re already losing ground to your competitors.
A Nucleus Research study of various sized companies in multiple industries showed that for end-user employers, implementing outsourced HCM offers a ROI of more than $9 for each $1 spent; costs upward of 79 percent less than on-site solutions; and saves almost 90 percent in ongoing systems maintenance.
Here are three ways offering integrated payroll and HCM solutions benefits your payroll firm:
Leveled playing field: Cloud-based payroll and HCM systems allow your payroll firm to better compete with bigger competitors. “Enterprise clients have deep pockets. They can go out and get whatever supporting software they want,” says Wes Muschara, Apex HCM’s Vice President of Product Management. “But cloud-based technology has broken down the barriers for smaller and mid-sized businesses to adopt the same software platforms and offer the same capabilities as larger companies.”
Revenue boost: Adding HCM to your payroll firm’s product and service roster helps expand your total addressable market. Muschara points to “added revenue and margins payroll firms can achieve through selling additional lines of service.” He notes that while payroll once was a higher-touch, personal service, in today’s tech-centric environment it’s become more of a commodity. This makes offering the full package of payroll and HCM increasingly critical. “If you’re not doing it, someone else is. In fact, everyone else is. Every other competitor is pushing integrated solutions and they’ll pick off your clients if you’re not selling what those clients need and want.”
Client retention: Offering a full suite of payroll and HCM solutions helps make your firm “stickier” to your clients. “The more services you have, the tougher it is for clients to leave you,” Muschara explains.
If you’re ready to expand your payroll service bureau’s HCM offerings, Apex HCM is here to help. We offer a full range of customizable, highly integrable solutions designed to minimize cost and effort for your clients while maximizing competitiveness and profitability for your firm. Call 878-645-3150 or contact Apex HCM online to learn how.