Smart Outsourcing from A to Z
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21-Oct-2014 -
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Transcript of Smart Outsourcing from A to Z
Human Resource Outsourcing
How Small businesses are winning by outsourcing.
www.ThinkingLeaders.com
Benefits of Outsourcing HR
• Reduce administrative burden
• Reduce costs of HR process
• Offer employees more World Class benefits
• Gain advice and solutions from HR professionals
• Win by thinking BIG and staying Scrappy !!
Outsourcing HR Costs vs. In-house HR Costs per employee.
Average annual cost of ownership per employee.
$199$165
( Miller, 2005 )
When outsourced
When administered in-house.
Some companies found saving of 50% by outsourcing their entire HR department (Rosenthal, 2006).
Size of your business
Consider the size of your company.
If your business has eight employees or more, outsourcing HR can be cost-effective, experts and small-business owners say.
Many companies are choosing to outsource their entire HR department to Full-Service HR vendors.
When choosing the right vendor to outsource find out their minimum employee requirement. Trinet.com only requires 5 employees to start a plan for your business.
Benefits
• Offer competitive benefits.
• HR vendors can secure a more affordable and comprehensive benefits package than a small business can on its own.
• Hire HR professionals to design HR functions that will benefit your business as you grow.
Recruit top talent.
• Offer prospective employees world-class benefits package.
• Help retain your current talent.
Give power to your employees.
A regular employee can log in to check benefits, tax information, and available vacation days. A supervisor can view his or her own benefits plus those of the team.
Relieve the administrative burden.
• Online access means your employees can find the answers to questions themselves and manage their benefit options and direct deposit.
• No mountains of paperwork, file cabinets or huge copiers.
Stay in legal compliance.
• With online applications you can keep an online library of documents for job applications, mandatory employer postings, and State/ Federal laws where employees can access it.
• HR consultants can help you stay current with new laws that affect your business.
Examples of HR processes
• HR Functions Outsourced Now
Defined contribution retirement plans
Health plans Defined retirement plans
Payroll
Recruiting
75%
52%
22%
9%
Performance management
4%
Examples of Full service HR vendors.
Sherbert Associates: http://www.sherbertassociates.com/
www.ADP.com
TriNet.com
SharedHR.com
References
• ADP (2010). Retrieved February 22, 2010. http://adp.com/about-us.aspx
• Lendino, Jamie (2006). outsourcing can grow your business. Retrieved March 3, 2010. http://www.cnet.com/4520-10192_1-6411746-1.html
• Miller, Stephen (2005). Study: Benefits Outsourcing Can Save Money, Increase Efficiencies. Retrieved February 23, 2010. http://www.shrm.org/hrdisciplines/Pages/CMS_012654
• Noe, (2010). Human Resource Management. McGraw-Hill Irwin. New York , NY. Pg 733.
• Rosenthal, Beth (2006). How to Outsource Everything in HR. Retrieved February 22, 2010. http://www.shrm.org/hrdisciplines/Pages/CMS_018010.aspx
• TriNet (2010), Alarm Central saves time and finds expertise with TriNet. Retrieved http://www.trinet.com/documents/case_studies/CS_Alarm_Central.pdf
• TriNet (2010), Retrieved March 3, 2010. http://www.trinet.com/the_trinet_difference/why_trinet/default.htm