Compliance issues in an outsourced world

The current trend towards outsourcing for SMBs has been triggered by the rise of compliance issues for business owners, including the Privacy Act. 

The pandemic induced slowdown in immigration, escalating compliance obligations, widespread talent shortages and the subsequent high cost of labour is driving a sharp increase in Kiwi SMEs looking to outsource everything from administration and compliance obligations to sales support, says the director and co-founder of ManageMe Outsourcing Services, Tatjana Day.

She says that the outsourcing trend is another example of how companies and people are adapting to the changed post-pandemic environment. 

“Business is booming post lockdown because many self-employed and SME business owners have, like people in jobs, discovered the value of time ‒ others, on the other hand, have become overwhelmed with escalating compliance obligations.”

ManageMe, a business established to help the self-employed and SMEs with local and overseas resources and know-how in getting repetitive tasks done, has experienced a sharp uptick in SMEs looking for help staying on top of their compliance obligations. 

“The self-employed and SME owners have traditionally worked long hours thanks to the traditional Kiwi DIY (do-it-yourself) attitude, but many are throwing up their hands in surrender to the sheer volume of compliance and their desire to enjoy a better-quality life with their families.” 

The Privacy Act changes of 2020, health and safety, ACC, tax, and human resource compliance are a cost in time and money – compliance is sucking up the productive time of many business owners. 

“It really isn’t fair on self-employed trades people like plumbers and electricians, let alone SME owners, to be spending more time on administration and compliance than on actually earning an income, yet that’s what it has become,” says Day (pictured below). 

“New Zealand may be the easiest place in the world to start a business but must be one of the most difficult in which to maintain a business.”  

And it’s not just the self-employed and SMEs who are struggling. Day said companies with countrywide branches (one client has 50,000 employees worldwide) are also seeking third party support as the talent shortage bites. 

She has the following advice for companies wrestling with Privacy Act concerns: 

1. No, she won’t be right 

SME business owners cannot afford for compliance tasks to slip between the cracks or to adopt a ‘she’ll be right attitude’. 

“You cannot ignore or procrastinate compliance because not responding or responding late will cost you more money, more stress, and more time—perhaps even your business. Get help, but get it done.” 

2. Systemise 

Day says Manage Me’s model is predicated on systems and processes because handling a numerous compliance, administration and other tasks would not be management without a system. 

“There are many software solutions and platforms that can help you set up processes and systems to help keep you on top of your compliance and other tasks so that you can get back to doing the high value work.” 

3. Knowledge is power 

Subscribe to the emails and newsletters that come from regulators, accountants, and others. 

Day says that for some people the idea of subscribing to a newsletter from the Department of Inland Revenue (IRD) may be unpalatable because few people like paying tax, but such emails are excellent reminders and a good way to minimise costs and time. 

“By educating yourself and by maintaining top of mind awareness you will avoid costly delays, reduce time costs, and recognise opportunities to save money with the panache of an expert. 

“You will be less likely to get caught out and nobody will be able to pull the wool over your eyes.” 

For more information visit https://manageme.co.nz/