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Companies can expand by outsourcing

Posted on June 9th, 2014 Read time: 2 minutes

Impact Management Services, a staffing firm, found it was losing money as it became larger, according to Crain's Detroit Magazine.  It grew difficult from an HR perspective to keep track of employees and make sure they were getting paid.

"The complexities continued to mount. We were dedicating tremendous resources and effort to solve issues there and adding layers of Band-Aids," Impact president Pete Davis told Crain's Detroit.

Davis found the solution to his problem was outsourcing his HR to another company. By hiring an HR outsourcing service for payroll management, he was able to keep his business growing and keep a handle on HR. It was only by streamlining the existing HR department, allowing another company to take the weight off of his own firm's back, that Davis found the room he needed for his company to expand.

"We're hitting this ramp now because we found those outsourcing solutions that don't slow you down by doing it internally," Davis said to Crain's Detroit.

Businesses are beginning to hire and expand
The Conference Board Employment Trends index increased in May, indicating companies are beginning to hire new workers. The index has risen from 117.32 to 189.58. This is a 5.4 gain year over year.

As a result of the study, the Conference Board found employment is rising. This is in line with what other recent job reports have said.

"The Employment Trends Index continues to signal solid job growth with an improvement in each of its eight components in the first five months of 2014," said Gad Levanon, director of macroeconomic research at The Conference Board. "The need for employers to rapidly expand their payroll in light of strengthening economic activity is a major factor in the rapid decline in the unemployment rate."

Companies in this predicament may want to consider outsourcing their payroll, making their company more efficient and therefore able to expand.

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