HR Outsourcing: A Three-Way Winning Opportunity

Employers have long been familiar with the benefits of outsourcing. From legal and payroll services to IT support and concierge services, companies recognize the value of focusing on growth and development, while providers take over from non-strategic, non-revenue-generating activities.

In recent years, small and midsize businesses have expanded their outsourcing horizons to outsource many of their human resource functions. HR outsourcing companies take on the complex and often poorly managed tasks related to HR employment and compliance. Business owners recognize that management is better used for developing and training their staff, rather than reviewing paperwork, surfing the web for compliance policies, and processing insurance claims.

HR outsourcing companies manage the entire “life cycle” of an employee, from hiring to firing. Administrative support includes:

• Hiring practices
• New Hire Policies and Manual
• employee training
• Employee Benefits Policies and Administration
• ACA Compliance
• Human Resources Employment and Compliance
• Payroll and Tax Administration
• Security and risk management
• workers compensation insurance
• Progressive Discipline and Termination Practices

HR outsourcing provides a triple benefit to employers:

1. Reduce overhead and operating expenses

Experienced HRO firms have worked hard for many years, and sometimes decades, to build strong, long-term relationships with many major vendors, insurance companies, and service providers. Representing thousands of employees, the HRO firm successfully negotiates deep discounts on fees and service premiums. These fees are then passed on to your customers. The economies of scale generated by the HRO offer small employers access to rates and programs typically only available to Fortune 500 corporations.

Fee and cost reduction can be experienced in many areas. Some examples include:

• Workers’ compensation premiums
• Group health insurance rates
• Civil Liability Insurance for Labor Practices
• Voluntary employee benefits (life, disability, vision, etc.)
• 401(k) plan administration fees and Cafeteria before taxes
• Payroll processing and tax filing services
• On-site security consulting
• Management Training Careers

2. Employee Liability Protections

Year after year, the federal government and state legislatures pass new laws or amend existing laws that directly affect the way employers do business. For small and midsize employers with little in-house legal support or human resources expertise, this is like building a house on quicksand. The landscape of employment continues to change, and only experienced legal experts who are ‘connected’ to the new laws can safely understand their impact on employers.

HR outsourcing firms employ teams of experienced HR professionals and in-house legal counsel. Day in and day out, these employment experts stay abreast of changes and pass this information on directly to their clients. Whether there are recently issued guidelines regarding new laws, such as the Affordable Care Act/Obamacare or social media policies, or changes to existing laws, such as the minimum wage, the ADA, or Title VII , clients who outsource their human resources to professionals can move with confidence. move forward knowing your business is in compliance.

3.Employee development and productivity

At the end of the day, it is the people within any organization that will make or break its success. Study after study shows that employers who invest in their employees have lower turnover, produce more productive and motivated staff, and are ultimately more profitable.

“Investing in employees” can take many different forms. Most fundamentally, it offers a robust benefits package that includes significant medical, dental, vision and other voluntary benefits. However, it doesn’t stop there. Employers who create a positive work environment and who recognize the hard work of their employees will ultimately produce a more dedicated and hard-working workforce. Examples include incorporating incentive and recognition programs, offering a flexible workweek, regular company events, and conducting regular employee reviews and continuing education opportunities.

HRO firms are in a position to provide these insurance programs and products to their clients. They will also guide you through the creation and implementation process, and help you adjust programs as they are developed.

In conclusion, HR outsourcing companies offer a three-way winning combination for their clients. The finance team will love reduced employment overhead and insurance costs, management will do their jobs comfortably knowing someone is watching their back, and employees will give 100% to the business knowing they are a human resource. truly valuable.