Category Archives: Uncategorized

Options in HR Outsourcing (Human Resources Outsourcing) – From Payroll to PEO (Professional Employer Organizations)

A lot of the calls we get are from companies looking for some sort of HR outsourcing solution…but they don’t want to give up payroll, they don’t want to “outsource” that.  Funny thing is that when asked…most confess that they use an outsourced payroll service already.  And, we know they don’t self-insure on benefits or workers compensation insurance.  Therefore, they are already outsourcing 3 of the 5 legs of the HR department anyway. 

Why not roll them up, get some economies of scale, tell Betty-Sue Badbenefits and Roy Shakeyriskmanagement to work in a department within the company that actually pulls in some revenue?

What is the “soft cost” of Human Resources? Can a PEO or HR outsourcing provider quantify?

Payroll is a commodity.

Benefits will cost what they cost.

Risk management, aka, workers compensation insurance will ultimately be based upon your experience.

So, what is the “soft cost” of human resources?  There have been many studies and questionnaires floating around to make a case for HR outsourcing services.  What we see is that most companies do not buy into the concept of “soft costs” until they become “hard costs.”  Meaning, we do not get a business owners attention until after the fact.  And those facts are turnover and non-compliance issues (fines) and workers compensation modifiers that give owners nose bleeds.

Our goal should be to take all aspects of a company’s human resources department into account when proposing a solution.  Line-by-line, department-by-department.

Healthcare reform’s impact on small businesses

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.

http://www.time.com/time/specials/packages/article/0,28804,1983409_1983408_1983400,00.html

How will ObamaCare effect small (less than 100 employee) businesses?

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.

http://www.dcemploymentlawupdate.com/admin/trackback/192206

Obama to go after independent contractors (1099’s)

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. 

http://www.inc.com/news/articles/2010/02/cracking-down-on-contractors.html

PEO overview 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.

http://www.womenentrepreneur.com/2010/02/dont-get-bogged-down-by-employee-issues.html