Posts from the HR Outsourcing Category
Entrepreneur online onboard with PEO and HR outsourcing
Posted by Kristian Svindland on February 19th, 2010
Good article in Entrepreneur online that discusses HR outsourcing and PEO and touches on ASO.
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
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Get out of workers comp jail aka the California State Fund
Posted by Kristian Svindland on January 26th, 2010
Another story about a couple of guys who tried to buck the California State Fund.
http://www.wcexec.com/Staffing-Firm-To-Pay-20M-In-Fines-and-Restitution-Avoids-Jail.aspx
There are legitimate solutions and ways to get out of the State Fund without going to jail.
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Some other good resources for small businesses
Posted by Kristian Svindland on January 18th, 2010
http://lmallc.typepad.com/blog/2010/01/small-business-resource-links.html#
Administaff, also a PEO, is mentioned in this blog, but they are among the most expensive solutions on the market.
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Firing someone the right way
Posted by Kristian Svindland on January 15th, 2010
Here is a good article that highlights the proper way a company should let go of an unsatisfactory employee. It focuses on one of our solution providers, TriNet, but all of our solutions, whether it be PEO, ASO or other HR outsourcing, have the expertise to properly handle this situation.
http://www.forbes.com/2010/01/14/firing-george-clooney-entrepreneurs-human-relations-goldfield.html
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HR outsourcing versus offshoring
Posted by Kristian Svindland on January 5th, 2010
A common misconception is that HR outsourcing will take over jobs and move the offshore.
A search for outsourcing leads to this article:
Totally different concept. What we (HROplus) is talking about is lowering your overall labor costs by more efficiently handling non-revenue generating operations within a small business (payroll, workers compensation, risk management, benefits administration, labor law compliance) and saving client companies thousands in administrative and hard-dollar costs thanks to immediate economies of scale.
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Use a PEO to avoid employer red tape and fines
Posted by Kristian Svindland on December 10th, 2009
Just got off the phone with a small business owner that is facing a $2,000 fine for non-compliance for some labor law paperwork they had no idea that they were responsible for. Pretty hefty stuff for a 5 man company, right?
Just another reason that small businesses should consider HR outsourcing models like PEO. Imagine having a staff of 50 employees, but no employer liability. Not to mention the savings in a major medical health plan, workers comp and other benefits.
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Where does my liability start and where does the PEO pick up?
Posted by Kristian Svindland on December 1st, 2009
With PEO – Professional Employer Organization, the owner/client is not liable for workers compensation nor unemployment claims. In some instances, the PEO offers EPLI (employment practice liability insurance) to cover workplace torts such as sexual harassment suits or wrongful termination suits.
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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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HRIS and HRMS for small businesses
Posted by Kristian Svindland on October 29th, 2009
We have seen this time and again. In fact, we just got off the phone with a prospect that has an HRIS that will not allow for performance appraisals. Okay, simple enough. Whatever system they employ would have a module or an add-on that would allow for this functionality, right?
Well, who’s to know. This prospect is a 50 person company that bought a system that is way over their heads. The do not have an on-staff IT person. The company they bought the system from does not return calls. So now they need to either buy another system that can “talk” to their current system or hire an in-house IT person (labor cost on that is at least $50,000 annually).
What they should have done, and this is what we recommend to our clients and prospects with less than 1,000 employees and/or an IT staff that is not willing to put a couple of hours per day into HRIS, is to go with a pay-as-you-go HRIS that includes payroll and support. The annual costs of this solution may look like more money at $250 – $400 per EE, but do the math on having to hire an IT person to run your HRIS.
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