hr outsourcing -charitable advisors presentation
TRANSCRIPT
HR Outsourcing: How It Can Work For You
Charitable Advisors Peer GroupJeremy York, SPHR, SHRM-SCP
HR F ie ld Representat ive—The Synergy Companies
Lead Consultant and Pres ident— Inv igorateHR
Learning Objectives• Review the role of human resources.
• Understand why companies outsource the human resources function.
• Learn about Professional Employer Organizations (PEOs) and HR Consultants.
• Learn how to determine if either is right for your organization.
The Role of Human Resources
Transactional
• Compensation
• Leave Administration
• Legal Compliance
• Payroll
• Recruitment/Selection
Strategic
• Organizational Development
• Performance Management
• Retention/Engagement
• Risk Management
• Training and Development
Why Companies Outsource HRAccording to the Society for Human Resource Management (SHRM), companies outsource:
• To save money—Realizing cost savings through efficiency.
• To focus on strategy—Aligning people with mission, vision, values.
• To improve compliance—Reducing risks through expertise.
• To improve accuracy—Increasing quality by lessening workloads.
• To gain technology advances—Tapping into “economies of scale”.
• No in-house HR experience—Acquiring an expert to lead the way.
Most Common Outsourced HR Functions• 84% - 401(k) administration• 72% - staffing• 68% - background checks• 57% - training/development programs• 54% - executive coaching• 53% - employee benefit administration• 49% - payroll
-Society for Human Resource Management
Professional Employer Organization (PEO)• Manage all components related to employment and HR
(payroll, benefits, tax liability, workers compensation, employee relations, training/development, compliance, etc.).
• Become the administrative employer for employees.
• Leverage its buying power to offer a range of HR services, resources, and employee benefits that small employers may not otherwise afford.
• Provide a “package” of services that are typically not offered a la carte.
HR Consultants
• Work with businesses of all sizes and projects of all scopes, both tactical and strategic.
• Assist with strategically integrating effective HR processes, programs, and practices into daily business operations.
• Function as a vendor or independent contractor, typically on a per project or “ad hoc” basis.
• Typically leave management of HR responsibilities to the client.
• Are flexible in their approach to partnership—can often tailor solutions to fit specific or one time needs.
PEO vs. HR Consultant
What option is right for my organization?
• Conduct a needs analysis.
What are you attempting to gain/achieve by outsourcing the HR function?
What does the business need to be more efficient in people management and reduce overall HR administration costs?
Are you spending too much time on administrative work rather than high-level, business strategy?
PEO vs. HR Consultant
What option is right for my organization?
• Evaluate your current processes and resources.
Do you have HR processes, and if so do they align with best-practices?
Do you have the in-house HR resources, but lack the expertise for certain projects/tasks?
Do you currently have the resources and time to devote to people processes and strategy?
PEO vs. HR Consultant
What option is right for my organization?
• Determine the work to outsource.
Do you want to outsource all large administrative tasks such as payroll, benefits, workers compensation, 401k, etc.?
Is the need to outsource projects on an as needed basis—smaller tasks such as recruitment/ selection, background/reference checks, employee training, compensation reviews etc.?
Wrap Up
HR Outsourcing
Can Be Beneficial!
It offers:
Cost Savings
Expertise
Efficiency
Strategy
Technology
