Posts from the Uncategorized Category
We will pay you to do business with us!
Posted by Kristian Svindland on September 2nd, 2011
Did you realize that you could have an entire team of dedicated HR Professionals assigned to your company and save money in the process? Yes; you heard me right. HR Outsourcing is designed to actually save companies money. Many business owners think that HR Outsourcing is expensive and that it will cost them way to much money without ever looking into it further.
The fact of the matter is that there are typically so much savings in the area of Worker’s Compensation, Health, Dental, Vision, Life, Disability, 401k, Payroll administration and to many to name soft costs; that the saving are actually greater than the cost of the program itself. So essentially at the end of the day we would be paying you to do business with us.
When you utilize the services of an HR Outsourcing company you are assigned the following team of professionals:
- Certified HR Manager- this professional will help with Job descriptions, back ground checks, employee enrollments, new hire kits, employee handbooks, new hire reporting, maintain employee files, I-9 verification, state and federal compliance, labor posters, management training, termination assistance, unemployment management etc…
- Risk Manager- will assist with Safety inspections and recommendations, safety manuals, manage worker’s comp claims and investigate fraudulent claims. In addition they will oversee your low cost pay-as-you go worker’s comp coverage. Keep in mind no deposit and you pay-as you go after you use it increasing your company’s cash flow. In addition no more end of the year audits!
- Benefits Manager- besides offering an entire array of low cost optional employee benefits including Health, Dental, Vision, Life, Disability, 401k, employee discounts etc… this HR Professional will also administer your Section 125, manage your 401k compliance and your COBRA compliance. They will also handle employee benefit enrollments and provide a hotline for all employees to call for Benefit information.
- HRIS IT Specialist- you will be assigned a powerful HR software program and this HR professional will train and assist you anytime you need help.
- HR Attorney- Besides providing your company with an Employer’s Practices Liability Insurance (EPLI) plan, as part of the program the PEO’s legal department will provide you with an HR attorney to assist with any HR related legal issues and your team of professional will make sure you stay in compliance with all state and federal regulations
- Payroll Specialist- This individual will handle all your tax filings, track vacation & sick time, handle all deductions & Garnishments, set up direct deposits or Payroll credit cards etc..
The advantage of working with a team of national HR professionals is they are up to date and current with all state and federal compliance issues. If you were hire one HR Manager; they will not be well versed in all areas of HR like the team of specialist an HR Outsourcing firm would assign to your account. The indivdule you hire would either have very specific knowledge such as HR compliance only or very general in nature such as some knowledge about HR compliance, some about risk management and maybe some about benefits administration. It would also be impossible for them to be up to date with all the different labor laws from state to state.
In conclusion; HR Outsourcing is designed to save you time and money while making your entire operation much more efficient. Contact us to learn more!
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Reasons that Companies turn to HR Outsourcing
Posted by Kristian Svindland on September 2nd, 2011
We have found that most companies that come to HROplus looking for help in the area of HR Outsourcing are looking for help in one, some or all of these areas:
- Employee Benefits- Lets face it, every year the cost of employee benefits get more and more expensive. Due to economies of scale; HR Outsourcing firms are able to get much better pricing then you would typically be able to get on your own. In addition; since the HR Outsourcing provider has highly trained experts to administer these benefits they typically only see single digit increases as opposed to the normal double digit increases you may see in the open market. In addition; the HR provider is always looking for better options for their clients.
- Worker’s Compensation- Another reason many companies turn to HR Outsourcing services is for a lower cost, pay-as-you-go worker comp alernative with no up front deposits and no end of the year audits. Yes you heard me right! When you work with an HR Outsourcing firm you will no long have to pay up front Deposits in the tune of 20% down and you are not subjected to those awful year end audits where you are typically hit with a large premium adjustment for the previous year. The reason for this is that you are paying for exactly what you use as you use it. Actually you would pay for it after you use it, creating a shift of roughly 3 months in cash flow. Also because you are paying for your comp on a weekly basis your worker’s comp bills are much smaller and more manageable.
- State & Federal Compliance- with well over 85 state and federal compliance issues (depending on the state you live in), it is surprising any company is able to function without getting a fine or penalty. By having certified HR professionals working with you, they will help you to stay out of trouble with both the state and the federal government. In addition they will have their legal team address any HR related issues that may arise and protect you with EPLI (Employment Practices Liability Insurance).
- Reduce labor cost- There are many hard costs associated with HR including Health, dental, vision, life, disbility, retirement, FICA, FUTA, SUTA, Payroll etc… In addition there are many soft costs that many business owners do not consider but can not be ignored such as the time it takes the owner of the company or an employee of the company to handle HR related issues, premium increases due to poor benefit administration or poor risk management, fines and penalties caused due to noncompliance, increases in unemployment rates due to poor administration etc… HR Outsourcing companies are able to reduces costs in both Hard and Soft costs- let us show you how!
- Improved HR Technology- Many companies realize that the cost associated with a powerful HRIS (Human Resource Information Software) are far to expensive to purchase on their own; especially after you consider annual maintenance fees and upgrade costs. However the HR Outsourcing firms provide you with this technology at no extra cost! It is actually part of their program for you to use. No upfront costs to use the software, no annual maintenance fees and no upgrade costs. In addition you will be assigned an IT Manager to train you and to answer any questions that you may have as you go.
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Michigan clarifies PEO, professional employer organization, definition and co-employment
Posted by Kristian Svindland on June 17th, 2011
Here is the link to the legislature, which goes into effect July 1, 2011:
http://legislature.mi.gov/doc.aspx?mcl-338-3723-new
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Options in HR Outsourcing (Human Resources Outsourcing) – From Payroll to PEO (Professional Employer Organizations)
Posted by Kristian Svindland on June 6th, 2011
A lot of the calls we get are from companies looking for some sort of HR outsourcing solution…but they don’t want to give up payroll, they don’t want to “outsource” that. Funny thing is that when asked…most confess that they use an outsourced payroll service already. And, we know they don’t self-insure on benefits or workers compensation insurance. Therefore, they are already outsourcing 3 of the 5 legs of the HR department anyway.
Why not roll them up, get some economies of scale, tell Betty-Sue Badbenefits and Roy Shakeyriskmanagement to work in a department within the company that actually pulls in some revenue?
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Definition of employee leasing, from Entrepreneur Magazine
Posted by Kristian Svindland on May 26th, 2011
Good info from Entrepreneur Magazine (short read, too.)
http://www.entrepreneur.com/encyclopedia/term/82362.html
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What is the “soft cost” of Human Resources? Can a PEO or HR outsourcing provider quantify?
Posted by Kristian Svindland on May 18th, 2011
Payroll is a commodity.
Benefits will cost what they cost.
Risk management, aka, workers compensation insurance will ultimately be based upon your experience.
So, what is the “soft cost” of human resources? There have been many studies and questionnaires floating around to make a case for HR outsourcing services. What we see is that most companies do not buy into the concept of “soft costs” until they become “hard costs.” Meaning, we do not get a business owners attention until after the fact. And those facts are turnover and non-compliance issues (fines) and workers compensation modifiers that give owners nose bleeds.
Our goal should be to take all aspects of a company’s human resources department into account when proposing a solution. Line-by-line, department-by-department.
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Suggestions for new Administaff name?
Posted by Kristian Svindland on February 28th, 2011
http://www.bizjournals.com/houston/news/2011/02/28/administaff-to-change-name-to-insperity.html
What’s in a name?
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Healthcare reform’s impact on small businesses
Posted by Kristian Svindland on April 22nd, 2010
Time Magazine’s cover story gives a light overview of the impact of the new healthcare bill and its impact for small businesses. Still waiting for more word from the PEO industry on how this will effect their top and bottom lines.
http://www.time.com/time/specials/packages/article/0,28804,1983409_1983408_1983400,00.html
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How will ObamaCare effect small (less than 100 employee) businesses?
Posted by Kristian Svindland on March 24th, 2010
Here is a good article that starts the dialogue. Be ware that there is still a lot of time, and possible amendments to the plan, before any of this takes place. We are still unsure of how it will effect PEO’s as not definitive costs of plans have been discussed.
http://www.dcemploymentlawupdate.com/admin/trackback/192206
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Obama to go after independent contractors (1099′s)
Posted by Kristian Svindland on February 22nd, 2010
Here is an article from Inc. Magazine from last week. Let’s hope that Obama can get somewhere with this as legitimate companies get undersold on their services every day by what I call “pirate” companies that don’t pay taxes, don’t have workers comp, and use poor labor practices in order to win business.
http://www.inc.com/news/articles/2010/02/cracking-down-on-contractors.html
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