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Small Business Human Resource Management

Lower employer-related costs, reduce hiring overhead, improve HR compliance, advance benefits and effectively compete for and retain employee talent with an outsourced human resource management solution. You focus on your company's core competencies while they manage HR, benefits, payroll, risk and much more.

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Why Human Resource Outsourcing?

As a small business owner, focusing on what you do well and securing needed talent in other operational areas is key to success. Securing the right people and keeping them motivated and productive is just as important. This is where an outsourced HR management solution can counter:

  • Increased employment regulations at the federal, state and local levels
  • Increased HR management complexity with more employees
  • Increased demand for comprehensive, affordable health care, retirement plan and other benefits

Learn more about how you can productively address these factors and Why HR Outsourcing Works

What is HR Outsourcing?

HR outsourcing involves a co-employment relationship between your business and a professional employer organization (PEO) whereby the PEO assumes many critical HR responsibilities including:

Benefits of HR Outsourcing

There are a multitude of benefits for you and your employees when using an HR outsourced solution to handle governmental compliance issues, including but not limited to:

Business Benefits:
  • Experienced HR professionals in benefits, payroll and risk management
  • Assistance with payroll, OSHA, EEOC and other compliance mandates
  • Centralized Internet access to HR related data and benefits
  • Claims management; workers' compensation and unemployment
  • Assists in writing comprehensive employee handbooks
  • Improved benefits packages and benefits management
  • Access to needed talent via a talent network
Employee Benefits:
  • Access to comprehensive benefits; 401(k), Section 125, insurance, flexible spending, etc.
  • 24/7 access to HR specialists on employee related issues and concerns
  • Special purchase discounts and banking privileges
  • Eligibility transfer of benefits between PEOs
Government Benefits
  • Professional and efficient employment tax filing
  • Tax collection acceleration
  • Improved communication of government requirements and reduced litigation

Core HR outsourced services

Your BUZGate Educational Champion, Administaff, offers a Personnel Management SystemSM that includes a wide range of human resources services to enable business owners to be more systematic and strategic about the role that people play in the success of their organization. These core services include:

  • Employment Administration
  • Recruiting and Selection
  • Performance Management
  • Benefits Management
  • Government Compliance
  • Employer Liability Management
  • Training and Development
  • Business Services

What to Look For

Below are examples of some of the activities you may want to pursue when evaluating an outsourced HR solution for your business:

  1. Make a list of what you want an HR outsourced solution to provide.
  2. Request references from prospective providers.
  3. Evaluate history and credibility of business record; e.g.,
    1. Length in business
    2. Clients served
    3. Independent certification of financial statements
    4. Accreditation by Employer Services Assurance Corporation (ESAC)
    5. National Assn. of Professional Employer Organizations (NAPEO) Membership
  4. Review customer service expertise and capacity.
  5. Learn how employee benefits are funded; e. g.,
    1. Are they fully insured or partially self-funded?
    2. Is there are third-party administrator (TPA) or carrier?
    3. Is the TPA licensed to do business in your state?
  6. What employee benefits are offered and do they fit your needs?
  7. What are the terms of agreement and cancellation policies?
  8. Do they meet all state employment requirements?

Who Uses HR Outsourcing?

There are many different types of for-profit and non-profit businesses that benefit from using an HR Outsourcing Solution. You and your business are well-positioned to significantly benefit by entering into a PEO relationship if your organization:

  • Is a progressive, growth-oriented business
  • Employs 10 to 2,000 employees
  • Experiences relatively low workers' compensation and unemployment risks
  • Works within technology, engineering, real estate, accounting, medical services, banking, legal, insurance and light manufacturing industries

Pricing

Outsourced HR service providers, more commonly referred to as a professional employer organization or PEO, typically price services as a percentage of the dollar value of your company's annual payroll. Depending on the number of employees, scope of services and other benefits, pricing can range from 2% to 7% of the annual payroll figure.

Frequently Asked Questions (FAQs)

Select from any one of the following to learn more about how a HR outsourced solution can serve your business:

  1. What is a PEO?
  2. What is a co-employment relationship?
  3. Who is Administaff?
  4. How can Administaff fit into my organization?
  5. How can I save time on HR-related issues?
  6. Does outsourcing HR also eliminate much of the paperwork?
  7. How does outsourcing HR help with finding and keeping good employees?
  8. Can I cut HR related expenses by going with a HR outsourced solution?
  9. Who controls what in a HR Outsourced relationship?
  10. How is Administaff different from other PEO's?
  11. What if I have questions after normal business hours?
  12. What is the real value of working with Administaff?

10 Great Reasons for Using an Outsourced HR Solution

  1. Access to BIG company benefits for your employees.
  2. Average savings of 40% of your time by outsourcing HR administrative tasks.
  3. Standard fee for access to a myriad of professional HR services.
  4. Employee access to discounted products and services.
  5. Access to HR specialists NOT HR generalists.
  6. Reduced liability with professional HR compliance knowledge and services.
  7. Access to comprehensive employee handbook, policies, procedures and practices.
  8. Lower employment costs with reduced hiring overhead, compliance expertise, technology infrastructure and more.
  9. Improved ability to control costs and build profitability.
  10. Ability to attract and retain quality talent while you focus on your businesses core competencies.

Where to Begin

Regardless of the number of employees your business has, there are benefits to initiating communications with a quality PEO provider, such as Administaff. Consider the following steps:

  1. If you employ less than seven employees, visit HRTools.com for small business solutions from Administaff.
  2. If you have seven or more employees, visit Administaff.com to request a free consultation or call 800-465-3800.
  3. By completing a brief company profile, your business may expect...
    1. A reply within 48 hours
    2. An opportunity to provide specific information regarding your HR needs and wants
    3. An on-site visit from an experienced HR professional
  4. With a productive fit between your needs and the services provided by Administaff, you can begin enjoying the benefits of a co-employment relationship.

About Your Sponsor

"Administaff (NYSE: ASF) provides America's best small and medium-sized businesses with administrative relief, big company benefits, reduced liabilities and a systematic way to improve productivity. As the nation's leading professional employer organization (PEO), Administaff serves as a full-service human resources (HR) department, providing business owners with a team of experienced service professionals, who deliver a comprehensive range of services, including employment administration, benefits management, government compliance, recruiting and selection, training and development, performance management, and more. For additional information, visit our site today at www.administaff.com, or call 800-465-3800."

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Note: This information is presented to provide a general overview of small business options and related services. It is not intended to be an exhaustive representation. Data has been compiled by the Knowledge Institute for informational purposes only. Content is provided on an "as is" basis and is not intended to, nor does it, provide advice or create a customer relationship between the Knowledge Institute, BUZGate™ and/or any other organization named herein, and any reader.

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page updated: June 05 2008
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