outsourcing hr steve wilner, mba over 20 years in the hr outsourcing industry has helped hundreds of...
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Outsourcing HR
Steve Wilner, MBA •Over 20 years in the HR outsourcing industry•Has helped hundreds of businesses achieve the benefits and ROI of outsourcing HR
November 2011 - Property of Your People Professionals, Inc. May not be duplicated or distributed in any form without express written permission.
Why so many small and mid-sized businesses are outsourcing HR (not just payroll)
and how to make it a success for your company
Focus on the Business of Your BusinessAccording to research from the U.S. Small
Business Administration, the average owner of a small business spends 7-25% of their time
handling employee related paperwork
Outsourcing HR
Why HR is ImportantWhy HR is Important
• Much more than just pushing paper• HR is about creating a competitive advantage
with your greatest asset - Your People• High risk and liability• Directly affects your bottom line
Outsourcing HR
Creating Competitive AdvantageCreating Competitive Advantage
Outsourcing HR
High Risk and LiabilityHigh Risk and Liability
Outsourcing HR
• The management team cannot succeed alone• Take an honest look and identify areas of need• Truly successful businesses have a network of
trusted advisors to call on for advice• HR has to be on the list of “must have” advisors
Network of Trusted AdvisorsNetwork of Trusted Advisors
Outsourcing HR
• DIY (“Do It Yourself”)• Partial HR Outsourcing• Total HR Outsourcing
HR Management OptionsHR Management Options
Outsourcing HR
• Do your own HR and payroll (with help from the internet)• Hire a strong HR (and payroll) person • Use outside insurance broker(s), labor attorney, HR consultant, Google,
CPA as additional resources• Potential short term cost savings• Maintain control• Resource (time) consuming, maintain risk/liability, error prone• Must maintain/upgrade technology• Least desirable option - reduces focus, increases risk/liability, higher
long term costs, cannot accommodate growth
Do It YourselfDo It Yourself
Outsourcing HR
Why HR OutsourcingWhy HR Outsourcing
Small businesses spend up to 80% more per employee than large businesses when complying with federal and state regulations.
U.S. Small Business Administration
Outsourcing HR
• Hire a variety of vendors• Payroll service, insurance broker(s), HR consultant, labor attorney,
internet HR subscription, etc.• Leverage vendors’ expertise and resources• Potential short term time savings• Vendors versus strategic partners• Still maintain majority of risk/liability• You coordinate vendors and their technologies• Better option for large organizations – does not transfer
risk/liability, long term costs unknown, less long term time savings
Partial HR OutsourcingPartial HR Outsourcing
Outsourcing HR
• PEO - Professional Employer Organization• ASO - Administrative Services Outsourcing• Perceived loss of control• Loss of current vendor relationships• Single strategic partner/trusted advisor versus vendors• Benefit from economies of scale (time savings, cost savings,
technology, expertise, etc.)• Offer big company benefits and infrastructure• Long term cost containment and stability • Greatly reduced risk/liability (shared employment liability)• Excellent fit for small to mid-sized companies
Total HR OutsourcingTotal HR Outsourcing
Outsourcing HR
• Important to choose the right provider – strategic partner not just administrative task processor with extensive technology
• California is the most complex state for HR• Large, national providers
Technology heavy, defined range of services, breadth of benefitsCall center support, not California experts, many self-insured
• Smaller, regional providersFlexible, customized partnership supported by technology, flexible
range of services, reasonable breadth of benefitsPersonal support, California (West Coast) experts, access to broader
insurance markets
Total HR OutsourcingTotal HR Outsourcing
Outsourcing HR
• Do address HR early and review it often• Don’t wing it or, worse, ignore it – high risk/liability area• Don’t rely on the internet• Do elevate HR to the “C” level• Do have an HR strategy• Do strongly consider outsourcing it (at least for now)• Result: lower risk/liability, increased focus, lower and more
predictable long term cost, more motivated employees, lower turnover
• Positive ROI (return on investment) HIGHER PROFIT!
HR Do’s and Don’tsHR Do’s and Don’ts
Outsourcing HR
• 25 employee law firm: Lowered employee benefits costs by more than $100,000 annually
• 4 employee new business: HR infrastructure built correctly from the start and able to focus on building the business
• Family owned business: Impartial HR increased morale and productivity and lowered risk while experienced HR helped strategic planning for a smooth business succession
• Startup with outside investors and aggressive growth plans: Experienced HR helped strategic planning for HR, benefits, compensation, safety, recruiting, etc. to support growth goals while building HR infrastructure
YPP Client Success StoriesYPP Client Success Stories
Outsourcing HR
Steve Wilner, MBABusiness Development ManagerYour People Professionals [email protected]
November 2011 - Property of Your People Professionals, Inc. May not be duplicated or distributed in any form without express written permission.
Choosing a smaller PEO is a wise choice in that we afford you the high touch service and flexibility that you will not find with the large, national, call center
PEO’s. And, as YPP is one of California’s oldest PEO’s (founded in 1984), we also offer the experience and stability of a larger provider that most small PEO’s
cannot. YPP is really the best of both worlds. Finally, California HR is all we do; we do it well and we do not try to be experts in every state.
Your People ProfessionalsYour People Professionals