Here is how you can help us and collect a little coin…

http://www.hroplus.com/referral.php

Best,

Kristian and Jeff

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:

http://www.entrepreneur.com/humanresources/managingemployees/article205124.html

http://www.forbes.com/2010/01/14/firing-george-clooney-entrepreneurs-human-relations-goldfield.html

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.

Here is the link…

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

 

 

For a company to consider some HR outsourcing solutions, such as PEO (professional employer organization) or ASO (administrative services organization), there is often a breakdown within the organization from a human resources or benefits cost or risk management standpoint. 

The right HR outsourcing solution can help a company weather these storms, or avoid them all together.  There is often a cost, of course, but it is cheaper before than after the storm has hit.

Sometimes

If you recognize that time is money, then a company that engages a PEO or ASO or other HR outsourcing solutions will definitely save money.  In particular, there are areas where a company employs staff to handle time consuming hr functions.  This time can be freed up with a PEO or ASO, allowing more time on strategic functions or revenue generating areas of the business.
 

A PEO or ASO will save a company time by writing employment policies and producing employee handbooks, researching medical insurance plans, implementing a loss control program, providing HR and compliance training for managers and supervisors, benefits administration, vacation and sick leave tracking, responding to unemployment claims, records administration, and many other hr functions.
 

In addition, you will possibly see hard dollar savings by consolidating your current hr functions to one provider.  For instance, instead of separate payroll provider, 401(k) administrator, workers’ compensation and unemployment claims management, Section 125 administration, insurance plans, COBRA administration, etc., and paying fees for these services as a small business to multiple vendors, with a PEO or ASO, you are paying one vendor.  Thus, eliminating margins to various vendors and saving money. 

One of the key components of PEO (professional employer organizations) that is overlooked is the employer liability.  With a PEO, since a company has partnered with a PEO, the PEO is responsible as the “employer of record.”  Thus off-loading any workers comp or unemployment claims to the PEO.  With other models…since they are not the employer of record, any fines or state of federal issues are the problem of the client.

How can PEO’s help these businesses?  By getting you out of the fund entirely and partnering with the PEO  and placing your risk (employees) on their books.

From our experience we have seen discounts on workers comp by as much as 50 percent.  In addition, the comp coverage becomes a pay-as-you-go solution, freeing up your cash flow.

The main advantage is the exceptional overall industry knowledge that the PEO brings to its client companies.  For instance, we have a solution for trucking that not only saves our clients upwards of 20% on their workers compensation insurance, but has the industry knowledge to keep drivers safe and assist its client companies in background checks and safety management programs.  Not to mention the expertise in running various payroll types for truckers.  Straight pay, commissions, per diem, etc. 

We also recommend construction companies (all workers comp codes) to look specifically for providers that have the industry knowledge that not only starts them out at low workers comp rates, but has the expertise to keep their job sites safe.  Saving money in the long run.