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Considerations Of Outsourced HR Services: PEO’s or PEO Alternatives?

By February 7, 2012 February 19th, 2015 No Comments

istock_000016187178xsmallConsidering an outsourced HR service? There are many to consider including PEO’s, payroll solutions, our outsourced integrated business processes.

Integration of human resource services is one of the most important factors to consider when evaluating truly effective HR Outsourcing. As part of integrated hr services, payroll is the most important basic function that the HR provider must provide. Everything that occurs in a business occurs through payroll. For example, termination, hiring, COBRA, Maternity Leave, Military Leave and more all have to be accounted for and administered to be in compliance with federal and state laws and standards.

An additional benefit that should be proviced by an outsourced HR service is to evaluate the group benefits program and add value by reducing expense and improving the group benefits and health insurance package for your company.

Everything for the most part triggers off of payroll, without this function you don’t have integration. When you have multiple vendors handling any one of these three core service functions you get into a finger pointing match and no one takes responsibility and the reality is the issue created could be a by-product of no one company taking full and total responsibility for the HR/Payroll and Benefits functions. Integration is part of HR Outsourcing or the service model is likely not to succeed.

Starting a business is no easy task, and once started the next 3-5 years will test you like you have never been tested in business. There are all sorts of “land mines” that can affect you in all kinds of ways mostly negative. You have to be able to withstand the storm, think quickly and react nimbly all of the time. One example of this I believe is many times the people you start the business with are pioneers just like you. They often times do a fabulous job. My experience was that many of those employees are no longer with us as when we were just a few clients they could handle the volume of business but as we started to grow rather quickly they had a hard time growing with the business. You must have the ability to recognize who you can grow with as employees and who you cannot. This can be the difference in quality of service to your client.

How many companies do you call that a recording answers, and you are now in the “vat of numbers” trying to get a human being on the phone. Such a simple concept but few companies want to spend the time/money to answer the phone. My thought is in the day and age where we communicate with Text/Email and other non-personal forms of communication, if a client or prospect calls your company on the phone doesn’t that mean they want to speak to a human being? I think yes!

Its the same thing that you should be concerned with in an outsourced HR service. Do they provide excellent customer service? If not, keep looking. One key question you should always ask – how long have their clients been with them. If the outsourced HR service cannot give you a list of long standing clients, there may be a reason.

How do you handle your hr services? Have you considered a PEO or PEO alternative?

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