Why Outsource Human Resources?
Effective human resource management is a huge responsibility. It requires countless hours and can become very costly – studies by the Small Business Administration estimate that the owners of small businesses spend 7 – 25% of their time managing HR paperwork. It’s not an efficient way for business owners to spend their time – however, it’s a crucial operation for any business to operate smoothly, and noncompliance with legal requirements can mean serious and costly penalties.
Strategic Outsourcing Solutions offers a wide variety of PEO, HRO, and ASO models as well as a la carte Human Resources services – all fully customizable to your needs. By outsourcing your human resources needs, you can free up hours of time for you and your employees while cutting costs and increasing the quality of your benefits.
Benefits of a Professional Employment Organization (PEO)
A PEO will take over all of your human resource management duties. This can be especially beneficial for small business owners as it includes managing risk, ensuring compliance with government regulations and industry best practices, recruiting, benefit management, taxes, and payroll administration. Unlike most small businesses, PEOs have massive human resource management capabilities – they access high-end infrastructure and applications, access to premium benefit packages usually only available to large corporations, and their specially-trained professionals work quickly and efficiently to cut your costs. A PEO can be an affordable option for nearly any business due to their flexibility and wide variety of plans.
Many employers are concerned that a PEO will affect their staff – however, a PEO does not participate in decision-making for your business in any way. You maintain the status of “common law employer,” which includes hiring, supervision, compensation, and firing your employees. The PEO simply allows you to provide benefits not previously available to your employees, act on your behalf when interacting with government agencies, and streamline your HR processes.
Benefits of a Human Resources Organization (HRO)
Large and small companies alike often choose a Human Resources Organization to manage their daily HR functions. With an HRO, you make Human Resources decisions while the processing details are outsourced. Your employees are employed under your company – there is no co-employment with an HRO.
Benefits of an Administrative Services Organization (ASO)
As ASO provides task-based administration for payroll, benefits, and data management – we usually recommend this solution for companies employing over 100 individuals. With an ASO, you maintain all decision-making abilities.