Set the Stage

Four reasons to outsource your human resources to a professional employer organization

By: Connie Laughlin

Professional employer organizations (PEOs) can be very effective at setting the stage for you to budget your funds, keep risk factors low, effectively manage employees and handle the employer administrative duties – all at a low cost and with only one vendor.

Eleven years ago, I became a business consultant for the highly accredited UniqueHR. Luckily for me, and for my clients in South Texas, we’re headquartered right here in Corpus Christi! It’s worthwhile for every business owner to look into this comprehensive bundled human resources (HR) package. PEOs provide:

• Payroll administration
• Workers’ compensation insurance
• Safety programs
• HR
• Benefits

Here are four reasons you should outsource your HR to a PEO:

1. Low cost
Business leaders fear the cost to bring in professionals will be too expensive – but that’s not so. Before you need to have an attorney specializing in employment law on retainer, or to hire certified HR professionals, payroll specialists, benefits specialists, workers’ compensation risk specialists/safety consultants or multiple vendors – outsource it to save the hassle and money!

Niche HR outsourcing service providers (PEOs) have established an obviously affordable and viable solution, or they wouldn’t be one of the fastest-growing businesses in the country. When you utilize best practices via a PEO relationship, expect a boost in production! Additionally, the PEO’s bill rate includes all HR costs, therefore streamlining all your HR admin tasks by dealing with one guaranteed vendor! The fee is also a write-off!

2. Eliminates risk
Many administrative risks aren’t understood by business leaders, which could lead to a higher level of financial damage because the risk management strategies, risk mitigation and precautions weren’t in place. Business management processes are segmented, as each department’s tasks fall into those employees’ hands. Company leaders face the risk of having a myopic view of each department based on the information employees decide to share with them. Many companies realize way too late that their departments are not as effective or efficient as they should be, or that they’re not operating legally according to worksite employment law.

Utilizing multiple outsourcing providers or even handling non-core business functions in-house makes it harder to establish an organizational view of performance, produce a detailed cost, evaluate employee production levels and effectively resolve performance issues. Additionally, not being on top of HR can negate strategic planning.

3. Top technology
The latest technology in HR is offered to you via a PEO arrangement. Payroll software is costly. On your own, you have to put a lot of time into sourcing it, operating it and paying for it with start-up fees and annual upgrades. If you need time accounting solutions, job costing or certified payroll solutions, look at a PEO arrangement first before dipping into the bank.

A long list of online HR skill-set training coursework in addition to your cutting-edge payroll software is available to you, your managers and your employees through your online portal.

4. Best benefits
It’s a huge relief to know you can add benefits at a super rate to your bundled HR package. You should see a really good rate on your medical, dental, vision, etc. Even the 401(k) is at a minimal cost. The more benefits you have to offer employees, the more likely they are to stay with you, and the more likely you are to attract crème of the crop talent!

Start now!
Achieving return on investment, eliminating financial risk and managing personnel are major preoccupations. Valuable time can be found by utilizing the outsourcing services available to you by a PEO. It doesn’t matter if you’re in the beginning stages of going into business or you’ve been in business a hundred years. Explore the option of outsourcing HR with a PEO.

Connie Laughlin is a business consultant for UniqueHR. UniqueHR provides payroll administration, workers’ compensation insurance, a safety program, risk management, an HR program and, optionally, benefits as a package. For more information, you may contact Laughlin at 361-852-6392 or