The challenges faced by a given company will invariably differ in their specifics from those faced by another. For that reason, the solutions sought out and implemented by each company will also differ from one to the next. Determining which type of human resources (HR) outsourcing company is right for you depends on several factors, including:
- An understanding of the shortfalls and process gaps that have you seeking outside help in the first place.
- Knowledge of the specific ways in which a professional employer organization(PEO) can be of help.
- Aligning your challenges with the stated capabilities of each HR outsourcing company being considered to know which type is best for you.
Businesses perform services, they create products, they achieve whatever results they exist to achieve. In most cases, this requires a degree of specialization and intensive focus to be consistently and competitively realized.
A wealth management company may excel on the financial/sales side of the equation but find themselves struggling where putting together a strong marketing/branding presence is concerned. To develop that sort of expertise in-house is certainly an option, though it may also prove costly and time-consuming.
Such circumstances can amount to a nightmare scenario for middle-market and smaller companies who insist on managing all aspects of their business under one roof, so to speak. Attractive though the idea is, a single operation doing it all is not always practical.
Even larger, wealthier companies will often outsource key functions to ensure they are done well and properly. The PEO model can be of tremendous value in helping companies maintain their human resources, operational efficacy, accounting accuracy, and legal compliance.
HR Outsourcing Options and Categories
A small-to-medium-sized business stands to benefit from having their professional services done well and properly. The peace of mind that avenue can yield tends to be worth the costs associated with traveling it. This is particularly true of highly regulated industries (finance, real estate, medicine, education) but also of companies interested in maximizing operational efficiency.
Anything having to do with accounting, compliance, or personnel records is highly important and should be tended to by trained specialists. If these exist on your payroll, terrific—use them well. If not, you might consider outsourcing key functions as a necessary step.
It’s true of every business in existence—they employ humans. Tens of thousands in some cases, merely one in others. Either way, those humans must be tended to from an administrative standpoint. Try placing that responsibility on the plate of a mission-critical executive and set your timer—they’ll be out the door in under a minute. It is important work and best handled by knowledgeable experts solely charged with its completion.
Whether managed in-house or by an external entity, the work of human resources must be done. A co-employment arrangement engineered and managed by a PEO can contribute significantly to the completion of that work without adding to their client’s administrative workload. Instead they will subtract from it.
The types of HR outsourcing available to you vary as greatly as do the responsibilities of any human resources department. Which is to say, they are many, including:
- Recruiting/Onboarding Emphasis
- Payroll Processing
- Benefits Management
- Employment Compliance Oversight
- General HR
Companies need people, recruiting is tough, and turnover is inevitable. Those three truths have been a stubborn aspect of the business world since ancient times. And while larger companies can rely to some extent on name recognition to attract (and retain) talent, small/middle-sized companies generally depend on job postings, resume searching, and the efforts of a recruiting team to fill requisitions.
A co-employment arrangement with a partner specializing in recruitment advertising, candidate screening, and new-hire onboarding can mitigate the burden brought on by those responsibilities.
Precision Payroll Processing
Keeping your employees paid is highly advisable. Managing that process, on the other hand, can be laborious. Allowing a HR outsourcing company to connect you with a payroll-proficient company can be of help to you and to your company in seeing that this aspect of your business remains intact.
Benefits Management Assistance
Each worker in your employ represents a benefits package of one sort or another. And while these vary in complexity and scope from one company to the next, all such packages present employers with administrative responsibilities which many middle-market companies find difficult to manage. If benefits allocation/administration has been a source of pain within your own operation, outsourcing that slice of the HR pie might be advisable.
Employment Compliance Oversight
In an increasingly litigious society, employment compliance requirements are prevalent and must be adhered to. Even a minor misstep in this arena can prove costly in the extreme for those who step outside the established guidelines (wittingly or not). That fact alone makes a good case for the outsourcing of key liability management functions to an HR firm, particularly one with close knowledge of that inherently labyrinthine arena.
NetPEO can effectively serve as a bridge between your small/middle-sized operation and the best HR outsourcing option(s) for your needs. The first leg of our process is developing an understanding of those needs.
Doing so allows us to strategically broker co-employment plans to accommodate your company’s specific HR/administrative shortfalls. Whether this sees us arranging for entire business divisions to cover down or the simple placing of a few key workers, our ability to negotiate terrific co-employment partnerships will yield the results you need at a fair price.
There is good reason to entrust your administrative cohesion, the streamlining of your payroll, an effective benefits allocation, and all regulatory compliance to professionals who know best how to manage these business components. Securing that talent, skill, and knowledge in a mutually beneficial co-employment capacity is what we at NetPEO do exceedingly well. Contact us immediately for a free consultation.