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.
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.
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.
I have found another good posting on the basics of PEO and HR outsourcing.
Here is the link:
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.
A common misconception is that HR outsourcing will take over jobs and move the offshore.
A search for outsourcing leads to this article:
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.