The astronomical cost of health insurance and related benefits is forcing small and mid-size businesses to cut back on full-time employees. However, in order for companies to continue meeting productivity goals, stay competitive in today’s marketplace and remain profitable, they are turning to Human Resources Outsourcing as a solution to offset the rising cost of employee benefits.

Due to soaring medical costs, it is now estimated that employee benefits make up approximately 30 percent of the total employee compensation dollar. As a result, the days of employers offering first dollar health coverage are long gone.

Presently it is more likely that employers will offer options such as employee contribution, co-pays, deductibles and co-insurance as part of their benefits packages. Yet during these troubled economic times the price tag of these measures is still too high for many small and mid-size companies.

When a company turns to human resources outsourcing as a solution and hires a Professional Employer Organization (PEO) to assume the responsibility of employee benefits, they are able to provide competitive benefits packages while saving a substantial amount of money. This is because many insurance carriers offer PEO reduced prices for employee benefits while offering a full range of healthcare plan options.

By offering comprehensive employee benefits packages, smaller companies are better able to attract, recruit and maintain more qualified employees.

PEO’s not only help small businesses with employee benefits but also assume many other HR responsibilities including:

• Employee/Labor Relations
• Employee Leasing
• Government Compliance
• HR Audits
• HR Consulting
• Safety and Worker’s Compensation

Many small and mid-size companies are finding that by outsourcing their recruitment, HR management and other services that a PEO provides they can expand their core business with greater success.

By leaving the HR management to experts who have years of experience in not only finding a skilled labor force, but also in training and maintaining them, small and mid-sized companies can focus on productivity and growth while cutting costs at the same time.

Companies who are seeking to expand into technical fields or have taken on a project that requires employees who have special skills are finding solutions in hiring independent contractors and outsourcing agencies.

When expanding into a new arena, utilizing human resources outsourcing is an effective and reliable way to access experts with the technical background and skills needed to complete the project.

Many times retaining a full-time employee would not be profitable. Enlisting the help of an outsourcing vendor is a cost-effective way to achieve short-term staffing flexibility while filling the job to completion. By allotting the responsibility to a team of professionals provided by a professional employment organization, companies can reduce risks associated with the improper execution of additional projects or expansion.

The Advantages of Human Resources Outsourcing for Companies Seeking Skilled Employees:

• Lowered developmental operating costs
• Greater focus on production and implementation
• Access to latest technologies
• Access to employees with technical knowledge
• Efficient employee management

It is estimated by the year 2012 this country will be short three million skilled workers. A recent survey found that over 20 percent of American businesses are having difficulty finding the right people to fill open positions. By using a professional employment organization for recruitment services and HR management, companies can utilize skilled employees for one particular project without having to take on the expense and risks of hiring a full time employee.

The most commonly outsourced skilled labor includes:

• Web Design
• Computer Programming
• Data Entry
• Research and Development
• Creative Services
• Engineering
• Legal Services
• Payroll Services
• Recruitment Services
• Healthcare Services
• Customer Support
• Accounting
• Tax Preparation
• Manufacturing
• HR Management

Staying competitive in today’s marketplace often means expanding into broader arenas. Outsourcing can resolve the problem of recruiting, training and managing skilled labor.

Safety and worker’s compensation laws in every state require all employers to provide cash benefits, medical care and rehabilitation services to any and all of their W-2 employees who experience work related injuries or disease.

Small businesses would benefit greatly by educating themselves about how safety and worker’s compensation actually work. They should know what the law requires in their particular state, what each business needs to do to assure coverage and how best to manage their compensation programs.

Some Facts about Safety and Worker’s Compensation Every Small Business Needs to Know:

Know the Safety and Worker’s Compensation Laws in Your State.

Although safety and worker’s compensation is required by all states, the laws vary from state to state. In many states, safety and worker’s compensation is encompassed by a larger statewide program while in others it is left up to the private insurance companies. It is important to know the specific laws that govern worker’s compensation in your state.

Know What Safety and Workers Compensation Covers.

When an employee is injured on the job “in the course and scope of employment,” even if it was the fault of the individual, he or she is qualified to receive compensation benefits. This means that even if an employee causes an accident, they will still receive workman’s compensation benefits if the incident took place at a jobsite or while executing any job function on company time.

Know if Your Business is Required to Have Safety and Worker’s Compensation Benefits.

In most states, employers with less than 5 employees are not required to have worker’s compensation benefits. However, even if a small business has under the minimum it is often times beneficial for both the employee as well as the employer to carry worker’s compensation insurance for added protection.

Know Each Individual Employee’s Classification.

Usually states only require full-time employees to be covered by workers compensation benefits. Part-time and contracted employees are considered to be exempt under the law.

Know How Safety and Worker’s Compensation Protects the Employer.

Worker’s compensation insurance not only protects employees from injuries sustained on the job, but it also serves to protect employers. Workman’s compensation insurance will shield employers from potential lawsuits resulting from employees being injured at work while also protecting them from the high cost of health care should any work related accidents require an employee to seek medical attention.

Some Facts about How Professional Employer Organizations (PEO’s) Can Help Small Businesses Manage Worker’s Compensation Benefits

Small businesses can take advantage of the reduced cost of safety and worker’s compensation that a Professional Employer Organization will provide because of the bulk rate insurance carriers often offer to PEO’s.

Many times a PEO will offer a small business a “pay as you go” worker’s compensation system that only calculates the exact amount of the premiums necessary for every pay period. This will help a company improve its cash flow and free up funds for other uses.

When a small business hires a PEO the safety and worker’s compensation is managed under their policy. This means that any claim by an employee will be filed under the PEO’s policy.

The PEO will manage all claims while also instilling best practices and risk management procedures to keep claims to a minimum. PEO’s will also perform safety inspections and train employees to take safety precautions to help prevent workplace injuries.

Small businesses that have more than 5 employees are required by law to carry safety and worker’s compensation. By utilizing the expertise of a PEO they can cut cost, raise efficiency and lower their risk by sharing the burden of providing employees with safety and worker’s compensation benefits.

Smaller companies affected by the present economic climate face more challenges than their larger counterparts. Studies have found that small business suffer more in a bad economy and show lower overall sales than the bigger and more widely recognized companies who rely on their brand name to get them through the tough times.

The fact that lenders have also tightened their purse strings where small businesses are concerned does nothing to help matters. So if it’s sink or swim, how does a small business stay afloat?

The answer to this question is to apply some sound business strategies that entrepreneurs have used during eras of great prosperity as well as throughout the leaner years.

Sound Business Strategies for Small Businesses:

Market like a pro

By taking advantage of mainstream media, which today includes popular communication platforms such as the Internet, mobile marketing and social media, small business can compete with larger brands.

Manage your time and money effectively

By hiring a Professional Employer Organization small businesses are able to cut cost as well as free up their time to focus on the productivity and expansion of their core business.

Keep a staff of well qualified employees

By utilizing a PEO to recruit and manage a sufficiently skilled work force small business can compete in today’s highly technical and quickly evolving marketplace.

Streamline

By reducing waste, multi-tasking and raising efficiency small businesses can step up productivity while slashing their overhead down to a fraction of previous operating costs.

Forecast

By researching trends and focusing on what the marketplace will be responding to in the near future companies can get in on the ground floor and stake their claim to innovative new products and services.

Deliver

By producing and delivering the best products and services possible a small business will build their brand as well as develop something there is still no substitute for; a reputation for excellence.

Turning things around for small businesses and making them more competitive in a difficult marketplace is what outsourcing HR services is all about. Hiring a PEO will provide a small business with the ability to implement the sound strategies that have been the cornerstones of success for many savvy entrepreneurs during both good and bad economic times.

PEO Services Include:

•    Benefits Outsourcing
•    Employee benefits
•    Employee/Labor Relations
•    Employee Leasing
•    Government Compliance
•    HR Audits
•    HR Consulting
•    HR Management
•    HR Outsourcing
•    Payroll Services
•    Recruitment Services
•    Safety and Worker’s Compensation

Saving a small business that is in trouble is not an easy endeavor. However, with the help of a team of experienced professionals most small businesses can find success even in an ailing economy.

A growing number of companies are choosing to incorporate human resources outsourcing into their business model. However, to be successful it takes professionals who are capable of implementing successful HR outsourcing strategies:

Top 5 HR Outsourcing Strategies:

1.    Recruiting Qualified Employees – With the evolution of technology, finding experienced employees who have the skills required to make a business successful in today’s marketplace is an integral part of the hiring process. Human resources outsourcing provides professional recruitment services that will focus on connecting the most qualified employees with the right employers. By utilizing the services of an HRO, PEO or ASO, companies gain access to a diverse workforce with a wide variety of expertise and skill sets. Bad hiring practices are a common mistake companies are finding very costly, resulting in substantial losses to their production and deeply impacting their bottom line.

2. Superior Training Techniques – Adequately training a workforce is time consuming and can drain a company’s resources without the critical input of human resources experts to establish well organized and successful training techniques. When neglecting to sufficiently train employees job performance and employee retention suffer and will ultimately reflect a company’s profits as well as their credibility. Training and development requires a company to be proactive. Relying on professional HR management for guidance and structure has proven to be vital for any business model.

3.  Employee Relations – Maintaining employees is complex and involves clear-cut policies that need to continually be communicated. Employee benefits, an employee handbook and employee/labor relations are all important business practices that are designed to cultivate a working relationship between business owners and employees. Avoiding potential problems and litigation is a critical aspect of HR that is significantly facilitated by a professional employer organization.

4. Observance of Government Regulations – Companies who do not comply with the mounting amount of changing local, state and federal regulations are subject to huge fines and must pay thousands of dollars per employee to comply.  While compliance is costly the penalties for not complying is more expensive. Keeping organizations up-to-date with these regulations takes the support of HR consulting services that specialize in government compliance.

5.   Employee Incentives – The key element to effective employee relations is to reinforce an employee’s value on a continual basis. Companies must motivate their employees to retain them. A management system designed to improve retention and employee/labor relations will reward the employee for their hard work and boosting job performance and output.

Human resource outsourcing is becoming a commonly used business solution for companies who want to lower their expenditures while expanding their labor pool. Most companies are seeking creative and effective strategies to improve their profit margin in a troubled economy.

One of the most popular alternatives is the outsourcing of non-core business such as HR management and payroll services to save money and increase output without cutting back on quality.  Human resource outsourcing is important to any business because it is more cost efficient and time saving to hire an agency to recruit and train employees rather than to do it in-house. Outsourcing workers also relieves companies of the burden of assuming all of the risks and responsibilities of employee/labor relations, safety and workers compensation.

From employee benefits services and payroll processing to HR consulting and technology services, more and more companies are relying on outsourced employees to bring specialized skills to their businesses. High quality employees are any company’s most critical asset.  Outsourcing for fields such as technology and professional services has been proven to be advantageous for companies who want to focus on their core business and but still progress in the marketplace.

Your company more likely than not already outsources some services for these reasons. The most common functions outsourced by employers include:

1.    Call Centers
2.    IT
3.    Distribution
4.    Security
5.    Customer Service
6.    Tax Advisory
7.    Applications Management
8.    Bank Tellers
9.    Technicians
10.    Front Office Administration

Using the recruitment services of a Professional Employer Organization (PEO) or an Administrative Services Organization (ASO) allows a company to rely on their recruitment services and employee leasing services without having to pay the additional high price of employee benefits.

Keeping up with the competition is more difficult to do in a down economy. Utilizing human resources outsourcing is an efficient way for businesses to raise their performance while lowering costs. HR outsourcing is an invaluable tool for recruiting the right people with the experience and expertise that will help a business stay competitive.

The fact that businesses are choosing to outsource for female employees is not surprising. The latest workforce trends are progressively positive for women. Currently over 46% of the labor force is made up of women and they hold slightly under 50% of the mid-level management positions.

This rise in the numbers of women in the workplace has also had a positive impact for business. Research collected in 2007 has indicated that women are very successful in leadership roles and management positions and produce higher returns than men do. This not only increases women’s value in the job market, but also the value of the companies they work for.

In an effort to recruit more women companies are utilizing human resource outsourcing to attract, advance and retain this talented and hard working segment of the population.

By enlisting the help of Professional Employment Organization (PEO) women are able to take advantage of the recruitment services of a team of experts whose sole focus is to place and manage qualified employees.

HR outsourcing provides many new opportunities for women and allows companies access to employees with the skills and performance record that is vital to developing and expanding their business.

HR outsourcing enables women to more actively pursue senior management positions by giving them the leverage they need to apply for work in the more specialized areas that are being outsourced. They can actively seek a position geared towards their individual qualifications through PEO’s recruitment services and a team of experts working to connect them to the right employer.

Women are a critical force in the workplace. They offer their employees a track record of performance and professional achievement that translates into a higher return on their investment.

Businesses are finding that by using HR outsourcing they are finding superior recruitment serves and are attracting, advancing an retaining a more skilled group of women applicants who provide them with the talent they need to improve their bottom line.

Global Human Resources Outsourcing knows that women are a dynamic force in the workplace and provide effective and reliable recruitment services that cater to both professional women and the businesses that need them.

The human element is surprisingly not the first priority for businesses to take into consideration when they decide to outsource. It is the element, however, that is critical to create relationships and interpersonal communications to facilitate the productive capabilities of a workforce that has specific needs.

It is not commonly recognized that employees who feel they are well qualified to perform the tasks or duties they were hired for are more content with their jobs and as a consequence consistently provide increased productivity.

Employees who were expertly placed in the positions they were hired for are more likely to feel happier with their work and will strive to help make their company money.

Surveys indicate that an employee’s attitude impacts a business’s bottom line and the workers who feel empowered and competent stay more motivated and committed to their job.

Adequately placing and developing solid relationships with employees takes skilled recruitment services. An HR outsourcing management team that is highly organized and experienced ensures not only company’s growth but also raises employee satisfaction and productivity.

Businesses not only need to cultivate the relationships with the employees they have in- house, but also must have the capacity to attract and keep the qualified talent they outsource.

Global Human Resources Outsourcing can help companies with their administrative services organization by expertly recruiting and placing talent while guaranteeing a more personalized process that will meet its business objectives and the needs of its employees.

GHRO’s professional employment organization has a Talent Acquisition Team with over 50 years of combined HR outsourcing experience and hires over 400 employees a year.

GHRO will work with your company to provide:
•    Benefits Outsourcing
•    Employee benefits
•    Employee/Labor Relations
•    Employee Leasing
•    Government Compliance
•    HR Audits
•    HR Consulting
•    HR Management
•    Payroll Services
•    Recruitment Services
•    Safety and Worker’s Compensation

The human element is always important to take into consideration. When deciding on HR outsourcing it is always wise for companies to use an organization that will expertly take care of the employees who are vital to their productivity and profit.

Making the decision to use human resource outsourcing can be a difficult one for any business to make. However, there are a few guidelines that can help any company to better understand the benefits of outsourcing to make an informed decision.

Lowered Costs: Outsourcing results in lowered operating costs when comparing them to the costs of hiring full time employees and providing them with long term benefits packages. Benefits outsourcing can save a company substantial amounts of money in both the paid hours it takes to process all of the administrative functions to hire and maintain a full time employee as well as the capital that can be reallocated to other interests.

Raised Productivity: The strategic advantage of HR outsourcing allows businesses to meet their growth demands with the skilled employees who can significantly improve a company’s output. It makes sense that relying on employees who are experienced and well-managed will produce larger quantities of  work at a higher quality.

Simplified Operation: Not enough can be said about reducing the burden of navigating the paperwork and logistical details it requires to sustain a full time employee. Small businesses in particular will be able to rely on an administrative services organization that will bring the experience and reliability to make running their business operations more efficient on a day to day basis.

Employee Satisfaction: When people are managed properly they not only feel that their needs are being met and but are more productive when their efforts are being adequately rewarded. This results in employees who are not only more satisfied with their jobs but will also increase their value to a company because their time and energy is focused on input rather than on employee/labor relations.

Expanded Selection of Qualified Talent: Outsourcing can provide the perfect solution for finding talent and qualified employees with the ability to meet the demands of an increasingly sophisticated marketplace.

Allows Focus Application of In-House Resources: Most employers spend time on personnel issues that could be better utilized with their core business pursuits. HR outsourcing simply allows businesses to focus on increasing output.

Reduced Risk: There are many assumed risks companies would benefit by turning over to a Professional Employer Organization (PEO). These include government compliance, safety and worker’s compensation and employee/labor relations.

Global Human Resources Outsourcing will provide viable business solutions that will lower your operating costs, protect your assets and reduce your risks. Whether you have a small, mid-size or large business HR outsourcing will meet your human resourcing needs and allow your company to stay competitive in the marketplace.

Many businesses are finding they need a work force with specific skills but do not want to take on the expense of hiring full time employees. Human resource outsourcing provides an alternative solution for businesses looking to control costs while  avoiding the added burdens of paying out employee benefits packages and managing the additional personnel.

When a company hires a Professional Employment Organization (PEO) they can rely on their expertise in recruiting highly qualified applicants and effectively managing them once they are hired.

More and more businesses are benefiting by hiring a PEO to handle their human resources. Not only are they better able to spend more of their valuable time and energy on their core business, but it also allows them to expand and elevate productivity without the additional responsibilities of payroll, workers compensation, tax deposits and government compliance.

The most commonly outsourced jobs include the following:

• Call Centers
• Accounting
• IT Consultant
• Product Design
• Financial Research
• Website Development
• Software Sector
• Medical Transcription

A Professional Employment Organization will also manage the following:

• Employee/Labor Relations
• Employee Leasing
• HR Audits
• Recruitment Services
• Safety and Worker’s Compensation
• Other Related Personnel Issues

HR outsourcing provides businesses with employees who have the specific skill sets they need along with an experienced management team to carry out the many HR functions required to sustain an employee.

Global Human Resources Outsourcing understands that every company deserves the opportunity to have well qualified personnel working for them and they provide the perfect solution to bring businesses together with experienced employees while reducing the costs of managing them.