Does the free market’s creative destruction create more than it destroys?  Do oligopoly conditions (a small number of sellers dominating an industry) undermine free market theory?

The Global Human Resources Outsourcing (GHRO) team would like to know the answers to these and related questions, so we’re sharing a discussion of the issue, which is on the agenda at The HRO Today Forum, currently taking place in Washington, D.C. at the Gaylord National.

“A Workforce Congress: Insourcing, Outsourcing, & Job Creation” is the title of a panel headed up by Richard Crespin, Global Executive Director of the HR Outsourcing Association (HROA).

Free markets contrast with controlled markets in which prices, supply or demand is directly controlled.

In a recession, existing businesses shed jobs in an effort to cut costs and hoard cash for the lean months ahead, Crespin argues.  As the economy recovers, they start to add these jobs back.  It’s “economic churn,” not new economic growth.

To move the conversation beyond economic churn, the HROA convened HR Officers from large and small companies to discuss how to can create a more competitive workforce for companies, for America, and for the world.

The HROA also hosted a debate on “Is outsourcing good for America?”  This debate directly takes on the question of whether the free market’s creative destruction creates more than it destroys.

Oligopoly is at the heart of the counter-argument about the free markets concept.  The term “free market” itself reflects an idealized mathematical notion of how people behave, in that the emergent prices are a natural “push and pull” of supply and demand. In economic theory this is called “perfect competition,” because it occurs only when there are a large number of customers and a large number of suppliers in a market for goods which are optional purchases. In a perfectly competitive market, the ideals of a free market essentially exist. This was the economic theory of the 1960s to 1980s.

What’s happening now? The current trend in economics observes that big markets rarely operate in this perfect competition – because human beings are conscious of markets, they seek profits, they shut out competitors, and they corner markets as monopolies and oligopolies.  The result: fewer jobs all around.

Let us know what you think by commenting below.

The old fashioned online job board has gotten nimble and smart, according to author Brent Skinner writing in the March issue of HRO Today.  In his article “Job Board Stiff?”  Skinner writes that search and social media are challenging large boards to adapt and evolve their models to accommodate new realities.

Skinner’s recommendations get the “Good Job Hunting Seal of Approval” from the Global Human Resources Outsourcing (GHRO) team.

Organizations seeking to hire top talent now have the responsibility for owning their online career advertising presence through syndication and one-to-one engagement via social media, notably Facebook and LinkedIn. A savvy organization, employing social media intelligently, can quickly get in front of highly targeted passive talent. For instance, setting up an employment page on Facebook means that every time a new opening posts to the page, it will display in all fans’ home feeds.

Old job boards are boring. They’re one-way, mass communication devices largely bereft of personalization and interactivity, attractive only to the most desperate of job seekers.

“Old-think” job boards are on the wrong side of history. But job boards are anything but becoming extinct. “New-think” boards just look a lot different from their predecessors.

Simply Hired and other job boards fall under the category of aggregators. These, along with Monster, are large boards that display job ads pertaining to as many industries as possible. Their scope is national, even international, and they have countless regional counterparts.

Then there are the niche job boards—narrowly focused on single industries, professions, or needs. For example, this category includes FlexJobs, which posts to its board only jobs that are work-from-home friendly—a larger and more dynamic constellation of jobs than conventional wisdom might suggest.

The future of job boards requires that they integrate social media, help hiring companies leverage search engine marketing to optimize postings for a longer shelf life, and build a talent community wherein they help candidates grow and evolve in their jobs.

Managers of the job boards that will flourish must understand that they reside at a confluence of variables, all exerting an influence on the changing nature of the job hunt. These factors include employer brand, job seeker engagement, search engine-driven sourcing and more.

In the end, they’re all seeking the Good Job Hunting Seal of Approval.

In local news, eyes are focused on Costa Mesa, California, a city neighboring GHRO’s headquarter city of Irvine.  The City of Costa Mesa faces a budgetary dilemma: a dilemma it plans to solve through outsourcing many city services.  On the list to be outsourced are in-house information technology, maintenance services, employee benefits administration, and payroll staff, among others.  In six months, these employees will be looking for jobs.  It’s tough news and a tough lesson about how outsourcing has long kept the government afloat.

According to an article in Federal Computer Week, outside contractors have proved a long-indispensible government resource.  Outsourcing allows the government to perform work beyond its typical staffing, equipment, or monetary resources. It also creates a more efficient government through reduced costs and increased productivity.  In a time of budgetary concerns, outsourcing may be the only way the public sector, and even small private-sector businesses, can maintain necessary service levels.

Cost-savings occurs, in part, because contractors cost less than permanent employees.  Last year, USA Today reported that government employees received roughly $28,000 in annual benefits—over $12,000 more than their private-sector counterparts.  Data has also shown that pay rates in state and local government increase faster than private-sector rates.  Total compensation at all levels of government tends to be higher.

But lower pricing isn’t the only benefit of outsourcing services.  Outsourcing to private companies often results in new, fresh ideas beyond the government status quo.  Outsourcing is a great resource for small, private businesses, too!  It allows businesses to receive services they may not otherwise have been able to maintain or afford.  For instance, outsourcing human resources tasks to GHRO allows businesses to meet their HR needs, from hiring, payroll, employee benefits, to the latest in HR regulations and trends, at a fraction of the cost of maintaining an in-house HR department.  It is low-cost efficiency at its best.

How can HR outsourcing benefit you?  Contact GHRO today for a free quote!

This week’s record-breaking winter weather has walloped over 30 states and affected one in three Americans.  In weather this severe, emergency officials advised people not to travel unless absolutely necessary, lest they get stuck in blinding conditions or massive snow drifts.  To many, the thought of curling up under a blanket beats going out in a blizzard any day.  So the kids get to stay home on snow days, but when do their parents get to stay home from work?

The truth is, employment law doesn’t dictate when a business must close for weather—closing a business is solely the employer’s judgment call.  Many businesses may choose to stay open in severe weather, depending on demand for their goods and services.  This is especially true of grocery stores, gas stations, hotels, and public-service industries like police and fire departments, hospitals, and snow plow operations.  It makes business sense to stay operational if there is legitimate work to be done, even in a blizzard.  Plus, businesses in areas that are used to winter snow will be less inclined to close due to weather, thanks to efficient snow removal.

But what happens to employees when businesses make the call to close?  From a human resources standpoint, businesses that close for weather are not required to pay hourly or non-exempt workers.  Like any other workday, these employees must be compensated only for the hours actually worked.  Exempt employees are another matter.  Businesses that close for a few days due to weather must pay their exempt employees who were ready and able to report to work.  On the flip side, businesses do not have to pay exempt employees who were unavailable to report to work, for example, due to the weather, transportation, or child care issues.  An exception occurs when businesses close for an entire payroll week because of weather, flood, or power outage.  Under these circumstances, exempt employees who perform no work for the week—not even checking e-mail from home—are not required to be paid.

It’s 2011, and with a new year brings a new way to steer your small business toward success!  One strategy you might not have considered: enlisting a professional employer organization (PEO) like Global Human Resources Outsourcing to take care of your business’ Human Resources needs.  By partnering with a PEO like GHRO, your business will benefit from a skilled and efficient Human Resources team at a fraction of the cost of maintaining an internal HR department.

So what can GHRO do for your business?  Our experienced specialists provide all the services of complete HR and payroll departments.  We’ll act as your personal staffing agency; start to finish, from developing a customized recruitment strategy, to screening potential candidates, to assisting with employee selection and negotiations.  Additionally, we’ll function as your payroll department, keeping abreast of the latest payroll laws and regulations.  We’ll also act as HR consultants and risk managers, monitoring safety and workers’ compensation law, government compliance, and employee benefits.  We can also help you establish an employee wellness plan, an employee handbook, and other strategies to best fit your business’ unique needs and goals.  With GHRO, you can efficiently outsource the employee relations that can stress your business’ time and budget.

With GHRO on your side, you’ll be gaining a trusted business advisor, just like your CPA or attorney.  So let us assume the risks and responsibilities of maintaining your employees while you concentrate on your core business.  We have a package to meet the needs of any small business.  Contact us today to see how your business can benefit from GHRO!

When someone mentions human resources, often times an image of someone in a dull cubicle such as Toby from the office.. What many don’t know is human resources exist everywhere, even in the extreme conditions of a war-zone such as Iraq.

On October 16th, soldiers from the aptly titled 387th Human Resources Co. (HR Co.) returned home. The 30 soldiers, which were deployed August 31st have been to Iraq a total of four times. The unit, which was first deployed in 2003 as part of Operation Iraqi freedom, helped manage Human Resources and postal services for Camp Liberty, just outside of Baghdad.

Human Resources play a valuable role in maintaining a structure of employees whether it’s a small business, corporate office or even the military. While you might be shocked that a Human Resources department would be deployed in Iraq, it’s no different from a large company and can help maintain a strong “chain of command” in the operation of a military deployment.

Military outfits need to work methodically and a Human Resources department can help accomplish this goal by interacting with troops and solving issues within a division. Human Resource departments help create structure and in a war zone or in a country with little stability in addition to their role of understanding people and helping them solve personal issues or acting as a mediator to solve conflicts.

Via: http://www.heartlandconnection.com/news/story.aspx?list=194787&id=527856

To help reduce costly mistakes, an increasing numbers of companies are turning to a professional employer organization (PEO) to have better access to experienced HR consultants who can help with many time-consuming HR functions.

A Professional Employment Organization is a single source provider of HR outsourcing that will serve as a human resources department for client companies who want to utilize their services to reduce costs and raise efficiency.

PEO’s provide experienced human resources specialists who perform the duties of a staffing agency while also extending HR consulting and management of payroll services, risk management, employee benefits and other human resources functions.

The reason PEO’s work so well for small and mid-sized companies is because they assume the responsibilities and risks of employee maintenance.

When hiring a PEO, client companies enter into a practice referred to as co-employment. They take on the burdens of procuring and retaining employees as well as the tasks of assuring government compliance and the requirements of safety and workers compensation by becoming their employer of record for tax and insurance purposes.

A  PEO supplies companies with administrative services, reduced liabilities, benefits outsourcing, employee benefits, employee handbook, employee/labor relations, employee leasing, HR consulting and HR management.

A full service PEO will provide the following:

• Payroll Services
• Recruitment  services
• Risk Management
• Employee Benefits
• Human Resource Services

Hiring a PEO means a company can focus on their core business and cost-effectively outsource the expense and often complex employee relations that can strain a company’s budget as well as deflect from achieving their overall goals.

A professional employer organization will enable business owners to enter into a co-employment relationship knowing that the successful management of employees is in the experienced hands of human resources administrators whose number one priority is to save their client company time, money and effort.

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.

Small businesses need to continue to grow in order to for the middle class to flourish and remain a stabilizing economic force. It is often said the middle class is the backbone of the American economy. This is certainly true when considering the combined contributions small businesses have made to their communities as well as to the nation’s economy as a whole.

Large corporations are considered too big to fail and the damage brought about by their demise is a topic widely debated. However, the impact of loosing a good portion of the small businesses responsible for significantly raising the standard of living and being one of the most effective driving forces of the affluence enjoyed throughout the 1980s and well into the 2000s is grossly underestimated.

Small business is vital to keep the opportunities open for hard working individuals with an entrepreneurial spirit to positively contribute to the economy.

It is not only important for banks to keep loaning money and ensuring that small businesses have the capitol they need to expand and help nourish the sickly economy back to health, but also for small business owners to take advantage of all the resources that are available to them.

These resources include human resources outsourcing to cut costs, stay competitive and have access to a more skilled and reliable work force.

Small businesses are critical to economic recovery. Over the past ten years small businesses were reportedly responsible for nearly 80 percent of the new jobs created annually. This is why it is so vital for them to not only be supported by our government, banks and other financial institutions, but it is also necessary for small business owners to utilize all of the tools in today’s tool shed, which includes human resources outsourcing as a valid cost cutting and time saving business solution.

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.