Your MSP business must take all care that internal infrastructure is properly managed. Your clientele will feel it if employees don’t feel secure at your operation. Employees will be distracted, customer service will lag, and prospects, as well as clients, will subconsciously see something is amiss.
Ensure internal operations are as optimal as external service provision. One of the common areas where there are issues is payroll. Payroll is complicated, it can be expensive, and it’s something you don’t have to stress over if you’re careful to cover all your bases. Some people may choose to hire payroll services to sort it out for them, but if you’d like to try running payroll for yourself, go ahead! Just be careful….the following are strategic considerations worth taking into account:
• Overtime issues
• Improperly categorizing employees (vendors, interns, etc.)
• Time issues
Your MSP business will have overtime if it employs hourly employees. One way to overcome overtime is to employ salaried professionals. However, if there is a lot of extra work, you’ll lose them as they realize they’re doing more work for essentially less money over time.
Overtime pay helps keep everybody honest, but there are legal considerations involved. One, don’t work employees up to a minute or two before overtime on the weekly. This is underhanded, and it will facilitate mistrust. Let them get a little every now and again. Two, ensure employees understand your overtime practices.
Improperly Categorizing Employees (Vendors, Interns, Etc.)
Interns and vendors will work under different payout paradigms than management and legacy employees who constitute your primary team. Ensure you properly categorize your employees.
Does a minute count or not? Do seconds count? Technologically speaking, it’s possible to calculate time to the microsecond, to the picosecond, and even the jiffy. Obviously, it doesn’t make sense to keep time so close. But where do you draw the line? When are employees milking the clock? What is the cushion around their shift? Is it five minutes before/after payroll penalty activation? Determine such parameters, and enforce them.
Your MSP business will likely have more effective payroll if you figure out time considerations, categorize employees correctly, and ensure overtime is effectively managed.