Promote your overall company productivity by letting the pros do what they do best.
By: Connie Laughlin
It’s common practice for businesses to outsource their accounting to a CPA, as everyone knows the importance of this professional service. What most employers don’t realize is their largest asset isn’t their capital or money – it’s their employees. Therefore, many important employer initiatives and procedures go overlooked, because no one’s adequately trained or prepared to handle these numerous processes. Professional services are needed, whether you have 10 employees or more than 100. And that service provider is called a professional employer organization (PEO).
Today’s human resource outsourcing solutions offer businesses the best protection from costly legal entanglements, and they guarantee you’re on the right track. And it just feels good to know your company is in the best hands letting pros do what they do best.
You can’t do it all in-house!
The essential goal of business owners and their workforce is to be financially productive, not to waste time on things that don’t generate revenue. It’s hard enough to keep pace with effective strategies to increase net profit, so why would any business decide to keep HR in-house when it’s so much more effective to outsource it? Outsourcing reduces liability, keeps overhead predictably low and promotes the overall productivity of a company.
Fortune 500 companies with human resource expertise in-house implement a full scope of HR initiatives to maximize employee productivity, avoid costly problems and ultimately increase and protect profits. Smaller companies, without that expertise, are at a competitive disadvantage. Today, we’re lucky to see PEOs have evolved to become a perfect fit, providing all these valuable tools.
If you’re outsourcing your HR, you’re not going it alone, as the PEO has shared liability and provides the best risk management protection. Plus, they provide professional HR expertise at a fraction of the cost to do it in-house.
Evaluate, then utilize.
Long-lasting successful relationships require a bit of vetting. This is when your due diligence is important; be sure to select the best PEO for your business. The small amount of time spent now will take a lot off your plate in the long run.
Prior to signing up with a PEO, fully understand their communication style and, if possible, take the time to meet the various people you’ll be working with. How easy are they to reach, and how quick will they be to respond to your needs? Where are they located? Are they customer service oriented?
What are their levels of education and experience, and do they have the necessary licensing? Also, look to see if they’re affiliated with industry associations such as ESAC (it’s like FDIC, for banks). These are all very important. And let’s not forget to check references.
Cash is king. It’s obviously not in your best interest to overpay for anyone’s service. Service providers that overcharge are not showing concern for your well-being, unless you’re guaranteed a significant ROI from the relationship. Know exactly what you’re paying for.
The more employees you have on staff, the more duties and risk you have to manage. If you aren’t highly certified in HR, safety and the multiple areas of risk management, how do you know your manager is really on top of it? So, don’t do it! Outsource it!
If you’re seeking success, study all available business model options and processes, and always be running the numbers! And outsource key functions to highly accredited and seasoned pros.
Connie Laughlin is a business consultant for UniqueHR. For more information on outsourcing your human resources to a PEO, you may contact her at 361-852-6392 or email@example.com.