In today’s challenging economy, it is essential for companies to “do more with less”. It is critical that all of your resources are focused on your core business – “It’s understanding where your real value added is and putting your best people and resource behind that. We converted our back room to someone else’s front room and that is what outsourcing is all about.” Jack Welch, GE

Why do businesses outsource HR services?

• Average median cost to administer HR internally for companies with less than 250 employees is $1469.00 per employee per year (US SBA)
• 2000% increase in employment litigation, since 1995 (US SBA)
• 60% to 80% of an employer’s time is spent on non-productive administration (Forrester Research, Inc.)
• More than 40,000 pages of federal employment regulations plus state and local regulations (US SBA)
• The median jury award for employment cases in 2005 – $276,711.00 (ABA)
• Average Attorney’s fees for cases that settle before trial – $95,000.00 (ABA)
• # of harassment and intimidation cases against small companies filed with EEOC in 2006 – 8,650

These are just some of the numbers that small businesses are faced with, so why not let people with the expertise and technology help you deal with these challenges and turn these costs into productivity and greater profits?

HR is the classic back office department. In many small companies (less than 100 employees), Human Resources is either forgotten or poorly managed, costing your company time and money. Here is what they are doing back there…

• Payroll Administration
• Benefits Administration
• Risk Management (Workers Compensation)
• 1099 Management
• Vacation, Sick Time, Expense Reimbursements
• Policy and Legal Compliance
• OSHA Administration
• Employee Data and Records Management
• Recruiting, Staffing and Resourcing
• Temporary Staffing
• Performance Management
• Training and Development
• Labor Relations and Employee Relations
• Employee Communications

Does it make any sense for an owner, founder, CEO, CFO, Controller, or Administrative Assistant to be handling this work when you can hand it over to a professional team with the experience to make a difference?

Not all HR Outsourcing is the same and one size does not fit all. It is important when selecting an HR outstource partner that you understand your options and choose accordingly. At Total HR, we have developed customized and flexible solutions that fit your business profile and growth strategy.

Professional Employer Organization (5 – 150 Employees)

Smaller and rapidly growing companies (5 -100 employees) can reap great benefits by entering into a co-employment relationship with a PEO. Most small business owners don’t realize that over 70% of employment lawsuits are filed against small companies. PEO’s protect small business by uncovering compliance issues and building professional HR practices and policies. Professional Employer Organizations provide a risk sharing umbrella by placing your employees under our FEIN. In this arrangement your company is able to take advantage of our insurance and benefits programs resulting in lower costs and more flexibility for your employees. Companies also get the benefit of having Employer Practices Liability Insurance (EPLI) further protecting them from potential employee lawsuits. An HR manager is assigned to each client and supports the recruitment and selection, regulatory compliance and performance management for the company. Our HR Managers are not over booked – they are scheduled to deliver our value proposition of helping small business do business better. Companies with sound HR practices grow more quickly and more profitably than companies that dismiss HR as non-essential. Click Here to see the top 5 Reasons why companies choose to outsource

Administrative Service Organization (100 – 500 Employees)
The ASO allows companies to leverage the expertise of a highly qualified HR department without entering into a co-employment relationship. Your company retains its FEIN identity, Benefits Plans and Workers Compensation but is managed by your HR vendor. Payroll Services are integrated with the management of these activities and a certified HR manager is assigned to provide strategic support to your company. HR managers typically will work with companies on recruitment and selection, performance management and regulatory compliance issues within the company thereby reducing overall operational costs and reducing exposure to risk. We have found this solution works best for companies with 100 -250 employees where the PEO economies of scale are not as significant. Our Payroll Premier and Payroll Plus are customizable Multi Process HRO solutions that can help you leverage your resources more effectively. Our web-based technology and on-site support solutions build productivity, morale and a better bottom line. Click here to answer our HR quiz.

Single Process HRO (500 + Employees)
Companies that are using a payroll service to manage their payroll, or using a company that handles COBRA administration or using a temporary agency to help them fill out their staffing needs are taking advantage of Single Process HRO solutions. For larger companies with well developed HR departments using a Single Process HRO makes perfect sense. The HR department has the knowledge and skills to manage multiple vendors and at the same time leverage their internal resources to deliver value to their employees and company. The trend even for larger companies is to look for Multi-Process HRO solutions to better leverage internal resources as budgets become tighter. Small and Mid-Sized companies should evaluate their HR vendor relationships and take advantage of consolidating their activities in a Multi-Process HRO solution.

A Total HR representative can help you determine what HRO strategy will work best for you. Call today or click here for a complimentary HR Audit and receive a Free Business Strategy Book.