What’s the Difference Between a Local (Boutique) Payroll Provider and a National Company?

by Paul Devlin

 

If payroll outsourcing seems like a foreign concept to you, we’re here to show you it’s actually quite common and incredibly beneficial. Besides saving you a momentous amount of time, it will also give you peace of mind for your business.

Whether you’re looking to outsource your payroll services for the first time or are ready to switch payroll companies, selecting a quality provider is one of the most critical decisions you will make as a business owner. Handing over this essential and often sensitive information to a company you’re unfamiliar with can make this process all the more daunting. Generally, you have two options when it comes time to selecting a payroll provider: a large corporation that can feel impersonal at times or a local payroll company that will take the time to get to know you and your business.

Listed below are some points to consider when deciding on a local or national provider for your payroll needs:

Payroll Outsourcing – Local or National?

  • Personalized Payroll Solutions Winner: Local Company

    • With a national company, there is only so much they can do to customize the experience for you. They are set up to deal with a high volume of calls and clients, which they mostly handle admirably. However, if you are looking to tailor-fit your payroll needs around the way you do business, a local provider may be the better option.
  • Superior Customer Service Winner: Local Company

    • Because of the sheer number of clients a payroll corporation works with, it’s nearly impossible to guarantee consistent and quality customer service. You might find yourself speaking with several people throughout your inquiry. Working with a local company you are more likely to have the same customer care rep most of the time, so they get to know you and vice-versa.
  • Compliance Winner: Tie

    • Staying compliant with local laws is just as important as State and Federal. Both companies have a duty to keep you in compliance with local, state, and federal laws.
  • Brand recognition Winner: National Company

    • Most national companies spend a large portion of their budget on sales and marketing so that you are familiar with their name. If name brands are important to you, then you should choose a National company.
  • Value Winner: Local Company

    • National companies will often make great ‘free’ offers upfront in order to bring clients on, but as the months and years progress, the costs will begin to creep up. They may also tie you down to a contract so that they can recoup the initial ‘free’ offering. Local providers may not be as ‘sticker friendly’ up front, but as the months progress, the value of their service whether it be through custom payroll solutions or customized report writing will offer a more inclusive and consistent pricing model. Also as a result, many local companies do not ask you to sign an annual contract.
  • Community Involvement Winner: Local Company

    • Many local providers give back to the community in many ways, whether it be through Chamber of Commerce involvement or charitable organizations. Some local companies will even ‘cross-promote’ your business by referring you to other people in the community. A nice perk of working with a trusted local provider.

 

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