In these trying times, companies are trying to improve the bottomline by focusing on strategies that can boost productivity at lessened costs. One of the ways this can be done is by streamlining personnel and staffing requirements, which can entail serious overhead costs. For instance, having a full-fledged human resources department can be very costly. Having a full-fledged accounting department can be very costly.
With this in mind, one good alternative is to turn to outsourced services. Or some innovative businesses even turn to freelancers for services (or outputs) that can be given at a moment’s notice, without personnel being on the regular payroll.
With outsourcing or freelancing, the legalese might be difficult to understand, particularly since not everyone of us has a full understanding of the law. For instance, how do you pay taxes? How do you remit social security contributions, and the like? An HR department is expected to take care of these. But with a lean organization, someone would have to take care of social security contributions, insurance, income tax remittance, and the like.
Wouldn’t it be great to have someone else handle that?
With that in mind, turning to an umbrella service could be a feasible option considering that for a fixed regular fee, you combine all these requirements under one roof and avoid the hassles of becoming below par as far as handling manpower needs.
An umbrella service is a company that acts as a contractor for a business’ manpower requirements and runs like a separate human resources department, which will fill up vacancies, and take care of the paperwork. This helps you save on various things:
- Salaries and wages
- Office space and equipment, like computers
- Computation of taxes and wages
- Legal issues involved in Labor issues
Businesses today need to be agile and competitive. Management and umbrella companies can help streamline any businesses’ operations, particularly in terms of managing human resources that can be outsourced or contracted out.
While umbrella company services are not free, these folks are doing the nitty gritty work for you, and it’s quality that you pay for.