Leave it to the Pros

Outsourcing drives profitability!

By: Connie Laughlin

The small to medium-sized business should no longer handle employee administration internally. Only Fortune 1,000-type corporations with qualified personnel and economies of scale can handle it effectively and judiciously.

Most employers attempt to take care of employee admin by combining an in-house delegation of various duties to outsourcing other things to various vendors. An excellent option is to outsource all of it to just one vendor: a professional employer organization (PEO).

With a PEO in place, you’ll have more time to focus on making money, you’ll have fewer vendors to hassle with and you’ll have less financial risk. Now you can work on your business, not in it!

Streamline for peak performance
Today’s business strategies are keen on streamlining all areas of operation and finding the most cost-efficient practices with the least amount of risk. The other advantage to these business models is their effectiveness at achieving peak performance for yourself and your workforce.

Streamlining starts with time management strategies, so stop spending everyone’s time on things that don’t increase your profitability. Lowering costs to do business might be near impossible on your own, but with a PEO in place, you’re not only containing employee costs at a low rate, you’re likely save money in the process.

Employees need human resources
Fortune 500 companies realized the necessity of high-functioning human resources (HR) initiatives 20-plus years ago. It’s crucial to the health of a business to have full-blown HR initiatives in place.

Ongoing certified training, certified professional in human resources (CPHR) credentials and tenured work experience are all required to proficiently handle HR. With the much-needed emphasis on constructing a dynamic workforce and assuring legal compliance, you can see why your average manager is not up to par with the necessary certified training and skill sets.

When you let the pros handle these things, you’ll notice employees are more engaged. And your bottom line will thank you. This is what you can expect when you have a PEO arrangement.

Employers need human resources
Why is HR so important? If you have one incident and don’t have the required or suggested procedures, policies or training in place, you could have the “book” thrown at you. You can bet on it, as your lack of action indicates you’re an indolent business owner who wouldn’t take the time to ensure appropriate workplace procedures, legal compliance measures and safety processes were in place! You’ll be fined, sued or both.

Any type of claim can cause the cost of being in business to go up. In addition, you could lose your ability to work due to experience rating hikes if you’re in a higher-risk industry.

One of the most important tools to have at hand is the expertise of a CPHR. A CPHR with a lot of experience is priceless! Speaking of price, they aren’t cheap to have on the payroll, so it’s a good thing you’ll be outsourcing one’s service in your PEO arrangement.

Employment risk management
You need the protection outsourcing brings to a business. PEOs eliminate many associated risks, and they can control costs. You’ll have legally compliant employee handbooks and other necessities in place.
On your own, it can be difficult or ineffective to manage a claim, whether it’s workers’ comp or unemployment, if you’re not savvy in HR risk management.

A professionally managed safety program is vital to many organizations. If a worker is injured on the job, it can cost the company in lost time, increased insurance rates and legal costs. How can you prosper if you’re too busy trying to protect your assets? Leave it to the pros.

Keep employee cost low
Small to medium-sized businesses do not have economies of scale. You’re going it alone. For example, if you have a claim and employ around 30 employees, your cost to do business can go up; if you have 1,000 employees and four claims, you can say you have an economic advantage over the smaller companies.

Connie Laughlin is a business consultant for UniqueHR. For more information on outsourcing your human resources, contact her at 361-852-6392 or conniel@uniquehr.com.

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