For small businesses, outsource HR to a professional employer organization (PEO) or other HR outsourcing solution. Leave the strategic HR to upper management and the day-to-day, time-loss stuff to your provider.
Time Magazine’s cover story gives a light overview of the impact of the new healthcare bill and its impact for small businesses. Still waiting for more word from the PEO industry on how this will effect their top and bottom lines.
Here is a good article that starts the dialogue. Be ware that there is still a lot of time, and possible amendments to the plan, before any of this takes place. We are still unsure of how it will effect PEO’s as not definitive costs of plans have been discussed.
This is a pretty concise overview on the cost of payroll services for small businesses.
Of course, if you bundle in additional HR services like software, benefits, compliance and workers comp, there are greater savings to be seen. That is why for small businesses, we recommend PEO and other total HR outsourcing solutions to gain economies of scale so the payroll is basically free.
I always get a chuckle out of small business owners who will not make a change to PEO or other HR outsourcing solutions because they say that their accountant does their payroll and they are the only ones they trust to do it.
News Flash: Most accountants don’t do the payroll themselves. They farm it out to a clerk in their office…or more often they have ADP or Paychex do it, then pass if off as their own work and up-charge their clients for their “expertise.”
So, instead of saving money using PEO, a small business is paying, on average, $100/hour to their account for a service that only costs $100 per employee per year to do.
Here is a few good pointers from one of the leading HR outsourcing providers in the country…outlined in BusinessWeek online.
An easier, more cost-effective way to handle unemployment claims and keeping your unemployment rate down is to hire a PEO, but you already knew that.
HROplus has had another banner year in 2009. Now we want to share our good fortune, and increase our client base.
Here is how you can help us and collect a little coin…
Kristian and Jeff
Here is an article from Inc. Magazine from last week. Let’s hope that Obama can get somewhere with this as legitimate companies get undersold on their services every day by what I call “pirate” companies that don’t pay taxes, don’t have workers comp, and use poor labor practices in order to win business.
Good article in Entrepreneur online that discusses HR outsourcing and PEO and touches on ASO.
I disagree with the “control” issue. How is a business owner in “control” when they have 7 different vendors for 10 different HR functions?
Anyway, here is the article:
Check out the link below for a very good article on PEO, professional employer organization. Sometimes referred to as employee leasing, but there are some differences in the models of hr outsourcing.
Some good quotes from NAPEO (National Association of PEO) as well.