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