Josh Kaplan is TCC’s Regional Director and has 20 years of experience in technology-enabled HR solutions. He helps payroll and HR departments solve challenges around efficiency, data security, and reporting.
Achieving high-functioning, high-efficiency Human Resources, and Payroll departments are, more than ever, a formidable challenge. Remember back before Covid-19 hit? In addition to the To-Do lists, we had wish lists, visions, and 5-year goals. Then suddenly, the future plans and the near-future assumptions went out the window. The focus shifted to the very immediate, very topical needs of employees and colleagues. It was a shift, a pendulum swinging decidedly toward the To-Do list. That all-too-familiar list where some items get crossed off each day, but the bigger-ticket items stay. More complex items take longer to get crossed off that list, and day after day, they’re still there. If they stay on the list long enough, they may even graduate to getting renamed “issues”. If those To-Do lists were written down on paper, the very act of rewriting those bigger issues upon each new day’s list might get a little frustrating. Too important to erase, and too difficult to complete – the futility can be maddening.
The good news is that while the pandemic (it helps me breathe easier when I write it with a small “p”) isn’t leaving any time soon, that pendulum of need is starting to swing back toward the center. HR and Payroll departments are starting to move beyond putting out the immediate “fires” to tackle more systemic issues. Today, leading companies are turning to business process outsourcing (BPO) to boost efficiencies, be more nimble, and accomplish more with less…for the long haul.
So, what is one of the biggest BPO bangs for your bucks? Income and employment verification. Verifications are a good example of a non-core process that is important to do well, but not necessarily to do in-house. The ideal outsourced process would be cost-free, secure, and customer-centric. When HR and Payroll departments start to look at their options in a little more detail, they often find themselves caught in a paradox. There is a desperate need to outsource certain business processes for improved efficiency, and concurrently there is a lack of IT resources to get it done. It’s a pervasive issue. Whether it be Manufacturing, Healthcare, Hospitality, or Education– most industries can feel the effect of layoffs, furloughs, limited resources, and budget restraints, especially as it relates to the constraints of IT support.
And while outsourcing projects stall, ripples are felt beyond HR and Payroll, especially now. High unemployment rates mean that more and more employees are looking at refinancing existing mortgages and loans, especially when one considers the historically low-interest rates. However, that high unemployment rate has lenders weighing their risks carefully. One measure that banks have put into place is to verify applicants more frequently since an applicant’s employment status can change within the days or weeks it takes to close a refinance or a new loan. Often, an applicant’s income and/or employment are verified more than once during the application process. In addition, right before finalizing the loan or refinance, lenders have been requiring verifications to be fulfilled within 24 hours. Not all businesses are set up for that kind of turnaround. Employees can be left hanging or have an application denied due to an incomplete or late verification.
HR and Payroll leaders are hitting a wall. What has grown into a need for more efficiency has run smack into a lack of IT resources. No IT resources, no outsourcing. No outsourcing, no change.
What if that wall had a door? Learn more about Employment and Income Verification Services.