Archive for November, 2009

What happens when my HR outsourcing provider gets bought?
Posted by Kristian Svindland on November 17th, 2009

HR outsourcing solution providers (PEO, ASO, HRIS, payroll) are no different from other business entities.  Acquisitions happen.  So what are you to do when this happens? 

First question is…who is buying who?  I would be more leery of your provider being bought, then the other way around. 

If your provider is the smaller fish…then maybe it is time to re-assess your HR outsourcing needs and solicit quotes from other providers.  Your current provider may say all the right things about how their current portfolio is going to be unaffected…and a “smooth transition” is expected.  But after having lived through various b2b acquisitions, there is never a clean transition. 

So, re-assess…the door has been opened for you to see what is out there.  Maybe an upgrade to a PEO or ASO solution is right for you.  Change is inevitable, and often makes your business that much more efficient in the long run.

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PEO v. HRIS
Posted by Kristian Svindland on November 17th, 2009

Found a great (older) article on HR outsourcing…basically, it indicates that smaller businesses are better off going with an HR outsourcing model, such as PEO or ASO, which offers a free HRIS, then buying their own and piece-mealing it all together. 

Here is the link…

http://www.inc.com/criticalnews/articles/200503/hroutsourcing.html

 

 

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PEO’s for startups
Posted by Kristian Svindland on November 13th, 2009

We come across startup companies all the time and have found that the PEO relationship is the best solution, as it allows the business owners to focus on their core business and let the PEO do its human resources thing.  The time and money saved with a PEO can make or break a startup.

Consider this…if you are a startup, or consulting to a startup company, then the best way to insure success is to focus on your core competencies, and not HR.  Your PEO will handle most functions…with the main exception of deciding upon your staff.  Otherwise, payroll, benefits (including health, dental, vision, 401k, and various supplementary insurances), workers compensation and risk management, payroll taxes, etc. are all responsibilities that are passed along to the PEO.  Imagine the time savings!

In order to obtain a quote from a PEO for services, a startup will need to supply some basic projections on head count and gross payroll, as well as job risk description, so the PEO can place the employees in the proper workers compensation code.  The PEO will do its due diligence and research the background of the principles of the startup, but that’s about it. 

If you are a startup, and are looking towards outsourcing your HR, then PEO may be for you.

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