Posts from the General Category

Back from NAPEO Conference
Posted by Kristian Svindland on June 29th, 2009

Just got back from the NAPEO (National Association of Professional Employer Organizations, www.napeo.org) Conference in Lake Las Vegas.  Great job by the NAPEO people in putting it all together. 

They had some terrific speakers, primarily focused on the the sales end of the business, but I was particularly impressed with Todd Cohn, who gave a breakdown of some particular States that NAPEO is working with the various legislations to improve the climate for PEO within that State.  Todd is the Assistant Director of State Government Affairs at NAPEO and has been there for about four years.  Some of this legislation is vital to protect not only the PEO’s, but clients of PEO’s. 

My post is more about business in general and how energizing it can be to go to your industry trade shows.  I know that the economy is tough and spending money to go to Vegas or Miami or New York or New Orleans may be just out of your budget, but the connections you make there can often be priceless. 

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California (or other) State Workers Comp Funds
Posted by Kristian Svindland on June 15th, 2009

Moving to an HR outsourcing company, particularly a PEO (professional employer organization) can have tremendous benefits when dealing with workers compensation insurance as it pertains to State-sponsored funds.  One major state-sponsored fund, the California State Fund, will be seeing a large increase in rates in the coming months.  There is a great opportunity for all businesses to reevaluate that relationship to see if there is a better way of doing business.

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.

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Industry specific providers of HR outsourcing
Posted by Kristian Svindland on June 5th, 2009

We have found a niche in solutions for hr outsourcing for our clients.  Industry-specific solution providers.  Granted most PEO’s or ASO’s would prefer a mix of clients in order to help them manage risk, both from a workers compensation and healthcare benefits standpoint, but there are solutions that make a lot of sense for specific industries.

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.

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PEO’s and ASO’s offer free HRIS or HRMS (Human Resources Information Systems)
Posted by Kristian Svindland on June 2nd, 2009

One of the services that are often overlooked by companies looking at PEO is the fact that they are receiving a free HRIS (human resources information system) in a lot of instances from their provider.  How can that be?  Think about it.  If you are a PEO and you have multiple worksite locations with multiple job codes, pay codes, pay frequency, etc…what is the most efficient way to manage all of that information?  HRIS.  So a PEO purchases an HRIS, then has additional modules added and layers of security so they can offer what amounts to a free web-based HRIS to their clients. 

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The main purpose of hr outsourcing…saving money
Posted by Kristian Svindland on May 12th, 2009

Whether you are looking for hard or soft-dollar savings…both can be found by outsourcing some or all of your HR functions.

But first, you have to want to be an employer that wants happy employees.  Happy employees are productive employees.  In addition, happy employees do not leave you.  Thus, the huge cost of turnover, which is oftentimes, estimated as much as 50% of gross payroll due to lost management time, re-training and recruiting. 

Therefore, if you have in place a benefits package that rivals those of big companies…why would your employees leave?  The fact is, the will not.  The hard dollar costs of benefits for employees are more than saved in hard and soft dollar savings.

Whether you go with a PEO (professional employer organization) or ASO (administrative service organization) to help you manage your human resources, for small to mid-sized companies, the economies of scale realized by these models will make your hr outsourcing a cost-effective tool that actually prop up your bottom line.

 

 

 

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HR costs for “do-it-yourselfers”
Posted by Kristian Svindland on May 5th, 2009

I speak to owners of small companies all day long…the question they most want to ask, but have a hard time getting the gumption to ask is…”How much is this going to cost…and how will this save me money?” When considering HR outsourcing, it is prudent to know what your current HR costs are so you can make a rational comparison versus “doing it yourself.”  The quick and easy answer, from an HR professionals’ prospective, is an average of 20% on top of gross pay.  If you want to add a medical plan and pay 100% of the premium of the employee…adds another 3 – 5%. 

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Saving a bundle on workers compensation insurance
Posted by Kristian Svindland on May 1st, 2009

Generally speaking, PEO, or other HR outsourcing solution, can save their clients upwards of 10 to 25% on their current workers compensation insurance.

How can they do that?  By better managing the risk management and billing process over a larger group.  Again, this is basic economies of scale.  If you are a 25 man manufacturing company, doesn’t it stand to reason that you would be better served piggy-backing on a larger company’s insurance program as they have the capacity to manage claims and cut costs?

In addition, most PEO’s, offer pay-as-you-go workers compensation insurance.  So the “big deposit” and/or make-up payments at the end of your insurance year are no longer a factor.  Giving smaller businesses a more flexible cash flow.

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Why work with an HR outsourcing consultant?
Posted by Kristian Svindland on April 30th, 2009

Who knows the market better than a professional?  By working with an HR outsourcing consultant, you get fast-tracked to the front of the line.  HR services providers are increasing relying upon outside consultants and sales personnel to assist them in bringing in new business.  Because the outside consultant has moved the client from lead to certified prospect, the provider is more willing to price on smaller accounts.  In addition, since hr outsourcing consultants are considered big producers by the vendor, their clients are often given preferred pricing.

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How HR outsourcing and PEO can help your recruiting
Posted by Kristian Svindland on March 25th, 2009

By working with a PEO (professional employer organization) or other HR outsourcing provider, you have taken the first step in making your business one that potential employees will flock.

How so?  Due to the nature of most HR outsourcing providers, including PEO, you are now able to offer a benefits package that is as good, if not better, than most Fortune 500 companies.  Full health, dental, vision, 401k, short and long term disability…all at your employees’ fingertips. 

In addition, due to the immediate economies of scale that you will recognize, these benefits will likely be priced lower than you can get on your own.

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HRIS for small businesses
Posted by Kristian Svindland on March 10th, 2009

We have been speaking with micro and small businesses for the past 5 years about their HR outsourcing options.  Obviously, we thing the best model is a Total HR outsourcing model, such as PEO or ASO.  But some small businesses insist on getting their own HRIS.  This is usually a very costly mistake.  The price-tag on these systems is often a roadblock in and of itself.  But the real issue is who is going to service and maintain the system after purchase? 

We recommend taking a hard look at PEO or ASO or employee leasing companies, as they have already bought the software and are running it for the benefit of their client companies.  At a much more reasonable price. 

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