Category Archives: HR Outsourcing

Firing someone the right way

Here is a good article that highlights the proper way a company should let go of an unsatisfactory employee.  It focuses on one of our solution providers, TriNet, but all of our solutions, whether it be PEO, ASO or other HR outsourcing, have the expertise to properly handle this situation.

http://www.forbes.com/2010/01/14/firing-george-clooney-entrepreneurs-human-relations-goldfield.html

HR outsourcing versus offshoring

A common misconception is that HR outsourcing will take over jobs and move the offshore.

A search for outsourcing leads to this article:

http://employeeleasing.blogetery.com/2010/01/03/how-to-outsource-their-tasks-most-feared-small-business/

Totally different concept.  What we (HROplus) is talking about is lowering your overall labor costs by more efficiently handling non-revenue generating operations within a small business (payroll, workers compensation, risk management, benefits administration, labor law compliance) and saving client companies thousands in administrative and hard-dollar costs thanks to immediate economies of scale.

Use a PEO to avoid employer red tape and fines

Just got off the phone with a small business owner that is facing a $2,000 fine for non-compliance for some labor law paperwork they had no idea that they were responsible for.  Pretty hefty stuff for a 5 man company, right?

Just another reason that small businesses should consider HR outsourcing models like PEO.  Imagine having a staff of 50 employees, but no employer liability.  Not to mention the savings in a major medical health plan, workers comp and other benefits.

 

Where does my liability start and where does the PEO pick up?

With PEO – Professional Employer Organization, the owner/client is not liable for workers compensation nor unemployment claims.  In some instances, the PEO offers EPLI (employment practice liability insurance) to cover workplace torts such as sexual harassment suits or wrongful termination suits. 

What happens when my HR outsourcing provider gets bought?

HR outsourcing solution providers (PEO, ASO, HRIS, payroll) are no different from other business entities.  Acquisitions happen.  So what are you to do when this happens? 

First question is…who is buying who?  I would be more leery of your provider being bought, then the other way around. 

If your provider is the smaller fish…then maybe it is time to re-assess your HR outsourcing needs and solicit quotes from other providers.  Your current provider may say all the right things about how their current portfolio is going to be unaffected…and a “smooth transition” is expected.  But after having lived through various b2b acquisitions, there is never a clean transition. 

So, re-assess…the door has been opened for you to see what is out there.  Maybe an upgrade to a PEO or ASO solution is right for you.  Change is inevitable, and often makes your business that much more efficient in the long run.

PEO v. HRIS

Found a great (older) article on HR outsourcing…basically, it indicates that smaller businesses are better off going with an HR outsourcing model, such as PEO or ASO, which offers a free HRIS, then buying their own and piece-mealing it all together. 

Here is the link…

http://www.inc.com/criticalnews/articles/200503/hroutsourcing.html

 

 

HRIS and HRMS for small businesses

We have seen this time and again.  In fact, we just got off the phone with a prospect that has an HRIS that will not allow for performance appraisals.  Okay, simple enough.  Whatever system they employ would have a module or an add-on that would allow for this functionality, right?

Well, who’s to know.  This prospect is a 50 person company that bought a system that is way over their heads.  The do not have an on-staff IT person.  The company they bought the system from does not return calls.  So now they need to either buy another system that can “talk” to their current system or hire an in-house IT person (labor cost on that is at least $50,000 annually).

What they should have done, and this is what we recommend to our clients and prospects with less than 1,000 employees and/or an IT staff that is not willing to put a couple of hours per day into HRIS, is to go with a pay-as-you-go HRIS that includes payroll and support.  The annual costs of this solution may look like more money at $250 – $400 per EE, but do the math on having to hire an IT person to run your HRIS.

Would you hire a dog to represent you in a lawsuit?

Or worse, would your represent yourself?  Of course not.  You would hire a lawyer. 

Well, first you would ask friends, family and other business associates for their recommendations.  Then you would meet with a handful of these recommendations.  Make a decision based on their expertise and your specific needs and away you go.  Right? 

Why not take the same steps when thinking about your company’s human resources?  Most likely, if you are a small business, the idea of hiring a certified HR professional is daunting.  The labor cost for that individual is prohibitive. 

Your employees are most likely your most valuable asset, but they can turn on you.  That is why a professional employer organization (PEO) is the most cost-effective way to keep your employees happy.  And trained.