Being the little guy on the block is never much fun. However, small businesses are discovering finding that competitive edge has become easier with the help of a (PEO) professional employer organization.

Trying to establish and maintain a business presence in today’s marketplace is difficult enough for large companies but even more difficult for the smaller ones. This is why the little guys on the block are getting big help by choosing to take advantage of human resources outsourcing for recruitment services, HR management, government compliance, employee/labor relations as well as other HR functions.

The current economic climate is making it harder for small businesses to thrive. The high costs of employee benefits and government compliance are forcing organizations to explore new strategies to lower their operating costs to remain competitive. Human resources outsourcing provides the HR consulting and HR management that relieves employers of the many pressures of hiring, training and maintaining their staff.

Small businesses are cutting costs and increasing their efficiency by having an administrative services organization take over the responsibilities of payroll services, safety and worker’s compensation, employee leasing and other HR services.

Whether you have 2 employees or 2,000, utilizing a PEO can help businesses find talented employees as well as offer their management expertise to train and maintain them while lowering costs and saving the employer both time and energy.

A company’s goal is to succeed and become profitable. In many cases this means growth and expansion. A PEO understands the needs of both employer and employee. Their sole focus is to minimize costs while implementing an HR management structure to maximize efficiency.

Taking advantage of the cumulative experience of a PEO provider will help manage everything from employee relations to interpersonal communications between employees and customers.

Regardless of the competition, small business owners do not have to compromise on productivity or profitability. Small business owners can take advantage of the many opportunities for growth and success by using a professional employee organization to achieve the competent HR management that will give them the competitive edge.

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.

Many organizations are restructuring to include outsourcing human resources. Businesses have found that they can not only cut cost and raise efficiency by outsourcing, but they can also improve the accuracy and speed at which a project is completed while having greater access to advanced technological expertise.

Cutting cost is only one of the benefits outsourcing offers both large and small businesses. Outsourcing allows companies to convert fixed costs into variable costs and reduces expenditures which release investment capital and raise profit margins, making them more interesting to investors.

Companies that do not take advantage of outsourcing human resources find they pay more for marketing, development and research, distribution and other operating costs. Outsourcing a contractor also allows companies to focus more on their core business by freeing up their in house employees.

Other reasons companies are choosing to outsource include:

Lowers labor costs – Finding temporary employees for short-term projects can be expensive and time consuming. Attracting qualified and reliable candidates without offering employee benefits can be difficult without the incentives usually involved in the hiring process.

Reduces risk – Outsourcing providers assume many of the HR risk management that face business in regards to HR audits, HR consulting, lawsuits, payroll services, regulations and government compliance, safety and worker’s compensation, short term/long term disability and employee/labor relations.

Increases Efficiency – An outsourcing firm will usually provide experienced individuals who do not require lengthy and expensive training.

Outsourcing human resources can provide businesses with the options they need to stay competitive in current economic climate. Outsourcing has become so commonly incorporated into business strategies that companies are beginning to outsource entire departments rather than individual positions such as billing or payroll.

Companies are able to devote more of their resources to their core businesses and bring products to market faster when they utilize outsourcing. As a result they are bringing in larger numbers of outsourced employees and still find they are lowering costs.

Global Human Resources Outsourcing Total Solutions provides integrated HR management, employee benefits, payroll and worker’s compensation services through an effective co-employment model that provides the benefits of a highly-staffed HR team without the overhead costs.

GHRO understands that in today’s changing marketplace that is continually incorporating advancing technologies, one of the most important resources a company has is the qualified people who are made available through outsourcing.

Employee benefits can become extremely costly. We can dramatically reduce that cost by customizing a plan that will help you improve retention and recruit key staff while keeping within your budget. We offer:

• Medical
• 401(k)
• Deferred Compensation Plans
• Life and Accidental Death
• Employee discounts on local events
• Dental
• Flexible Spending Accounts (FSA)
• Credit Union membership
• COBRA administration
• Vision
• Short and Long Term Disability
• Employee Assistance Programs
• Voluntary benefits such as legal, cancer, accident and even pet insurance

If you’re looking for a complete benefits solution, call GHRO. We’ll create the right package at the right price for you.

In a PEO/co-employment relationship, our clients continue to direct the day-to-day duties and activities of their employees. However, because the PEO takes on the majority of HR management chores, your time is freed to focus on what matters most – your business.

At the same time, as your PEO, we contractually assume certain rights, responsibilities, and risks on your behalf, particularly in the area of Workers Compensation. We become the “employer of record” on an employee’s W-2, which means we deliver and manage employee benefits, payroll processing and tax administration, workers’ compensation, state unemployment insurance, EEOC claims and much more.

Your Trusted PEO

As a leading Professional Employer Organization (PEO) GHRO Total Solutions provides integrated services designed to streamline the cost and complexities of HR management, employee benefits, payroll, Workers’ Compensation and more. We offer this through a unique and seamless co-employment model that provides the benefits of a highly-staffed HR team, without the overhead costs.