© 2010 PEO Consulting Group, Inc. Used with permission by HROplus.
HR OutsourcingTake your Business to the Next Level
Navigate to Higher Profits
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Discovery
Strategy
Implement
Excel
Profit
Our Mission is to improve owner's wealth by
delivering HR services in a manner that
impacts our client's profitability and business
value.
© 2010 PEO Consulting Group, Inc. Used with permission by HROplus.
HR OutsourcingTake your Business to the Next Level
Discovery
Strategy
Implement
Excel
Profit
• Confidential HR Evaluation
• Determine Current HR Related Costs
• Benchmark against Industry Averages
• Create SWOT (Strength, Weakness, Opportunity, Threat) Analysis
• Prepare Strategic HR Proposition Report
• Prepare RFP Document
• Gather Proposals from HROplus Partners
• Agree on Proposed Solution & Timelines for Implementation
• Begin Implementation of Agreed HR Strategy
• HR Software Demo and Management Training
• Employee Orientation
• Benefit Enrollment
• Run First Payroll to Start the Program
• Experience Instant (ROI) Return on Investment
• Develop or update existing Employee Handbook
• HR Manager will map ongoing HR strategies to succeed
• Realize Initial savings in Benefits, Workers Comp, Payroll and Admin fees
• Realize More Growth Due to Improved Productivity and Efficiencies
• Gain Piece of Mind with a Full HR Department Protecting your Business
from State & Federal Regulations & Employee Lawsuits
Your Map to Success
© 2010 PEO Consulting Group, Inc. Used with permission by HROplus.
CPA Firm – Expertise in:
Audit & Review Services
Tax Code
Estate Planning
Succession Planning
Internal Controls
Financial Automation
Law Firm – Expertise in:
Business Law
Contracts
Corporate Structure
Lawsuit Defense / Initiation
Real Estate
HR Firm – Expertise in:
Recruiting & Selection
Training & Development
Compensation
Benefits Management
Employee Relations
HR Compliance & Records
Risk & Safety
Businesses Outsource HR Functions Similar to Using a Law or CPA Firm
Your
Business
Business owners use a portion of the expertise of specialists
to protect and help their businesses grow
HR Outsourcing
Why Companies Outsource
© 2010 PEO Consulting Group, Inc. Used with permission by HROplus.
HR OutsourcingWhy Companies Outsource
BPO - Business Process Outsourcing
According to salary.com
The Average Compensation for an HR Manager is
$130,014
By utilizing the services of an outside company to perform specialized
business functions; Companies are able to focus on what it is they do best
rather than struggling with tasks they do not have specific expertise in.
Main reasons that companies outsource:
• Reduce and control operating costs
• Improve company focus
• Gain access to world class capabilities
• Free up internal resources
• A particular function is too time consuming
• Insufficient resources are available internally
• Share risks with a partner company
Most Common Business Functions Outsourced
• Legal
• Accounting – Tax Preparation
• HR Outsourcing
• Marketing/Advertising
• Website Design
• IT Management
• Call Centers
Hiring an HR Manger is Often Cost Prohibitive
Do What You Do Best & Outsource the Rest
© 2010 PEO Consulting Group, Inc. Used with permission by HROplus.
Simplify & Grow
• All inclusive HR Management Solution
• Saving a great deal of time and internal resources
• Allowing you to Focus and Grow your Business
Increase Productivity
• Employees are able to focus on their main job functions
• By doing so the entire company becomes much more efficient
• HR Programs designed to improve Growth & Development
• Employee Training programs
Decrease Liability
• By having an entire team of HR Professionals; your company will:
• Be fully compliant with all State & Federal Regulations
• FLSA, ADA, EEO, ADEA, FMLA, Title VII, COBRA etc…
• Covered with $2 Million in Employment Practices Liability Insurance
• Have access to an HR Attorney for all HR related legal questions
• HR Provider assumes all liability
Reduce Labor Cost
• There are typically savings in the following areas:
• Employee Benefits- Typically 15-25% Savings
• Worker’s Compensation – Typically 2-30 Savings pay as you go no Audits
• Payroll is included at no additional cost -100% savings
• Retirement Plan Compliance & Reporting – 100% Savings
• State Unemployment Taxes – depending on the state 0-4% Savings
Attract & Retain Key Employees
• By Offering a more Professional workplace atmosphere
• By Offering Better Employee Benefits Package
• Wellness Program
• EAP Employee Assistance Program
Scalability
• Allowing the Business to easily Expand or Contract as needed
• Ability to grow into any other State quickly
• Ability to grow into over 100 other Countries overnight
Gain Access to an Entire Team of HR Professionals
• Certified HR Manager
• Risk Manager
• Benefits Administrator
• Payroll Specialist
• HR Attorney
Increase Value of Your Company
• Schedule an HR Audit today to see how!
Benefits of HR OutsourcingReasons Companies Outsource HR
© 2010 PEO Consulting Group, Inc. Used with permission by HROplus.
HR Outsourcing
Meet Your HR Team
Certified HR Manager
• This HR professional will handle the following duties:
• Create Employee Handbook
• HR Hotline for:
• Manager Consultation
• Employee Relations
• Create Job Descriptions
• Drug & Background Checks
• I-9 Compliance
• New Hire Reporting
• SSN Verification Report
• FML Administration
• Unemployment Claims
• Employment Verification
• Federal & State Guidance
• FLSA – Fair Labor Standards Act
• Title VII Discrimination
• ADA – Americans with Disabilities Act
• ADEA- Age Discrimination in Employment Act
• And much, much more…
Risk Manager
• This HR Professional will take care of the following:
• Analyze & Recommend Safety Protocol
• On-Site Safety Inspections
• Develop Safety Program and Manual
• Create a Drug Free Workplace Program
• Coordinate Safety Training and Certification
• Provide OSHA Assistance when needed
• Issue Workers Comp Certificates
• Pay as you go program
• No Annual Audits
• 20-30% discounts
• Workers Comp Claims Management
• Initial Claims reporting
• Fraud Investigation
• Prepare back to work program
Benefits Administrator
• This HR Professional will provide your company with the following:
• Ensure Affordable Care Act (Obamacare) Compliance
• Provide Health, Dental, Vision
• Life, Disability
• 401k
• EAP -Employee Assistance Programs
• Wellness Programs
• HSA -Healthcare Savings Account
• FSA -Flexible Spending Account
• 24/7 Online Web Account Access
• 24/7 Health Advocate for Claims Resolution or to find a doctor
• Annual Enrollment
• New Employee Enrollment
• Employee Eligibility
• IRS Section 125 Compliance
• Cobra Compliance
• HIPPA Compliance
• Invoice Payment
• 5500 Filings
Payroll Specialist
• This HR Professional will provide:
• 24/7 Online Access to Powerful Online HR/Payroll Software
• Software Training to all Managers
• Reporting
• Audits
• Inquiries & Verifications
• Payroll Verification
• Garnishment & Deductions
• W-2 Processing
• Customized Reports
• General Ledger Interface
• Time Clock Interface
• Customized Deposit Options
• Checks
• Direct Deposit
• Payroll Debit Card
• Payroll Tracking for:
• PTO – Vacation & Sick Time
• Job Costing
• Tax Compliance
• Federal & State Payroll Tax Management
• Federal Unemployment Tax
• State Unemployment Returns
• Quarterly Tax Reporting
• Annual Tax Reporting
• Regulatory Compliance
HR Lawyer
• The HR Professional will provide legal guidance with regards to any and all HR related legal questions
• EPLI – Employment Practices Liability Insurance
• Covers business with up to $2 million in coverage for:
• Wrongful Termination
• Sexual Harassment
• Discrimination
• Wage & Hour Laws
• ERISA
• Unemployment Benefits
• COBRA
• Breach of contract
• Any other Work place tort
© 2010 PEO Consulting Group, Inc. Used with permission by HROplus.
Providing HR SupportThrough the Entire Employee Life Cycle - From Hire to Retire
Attract/Hire
HR Compliance &
Reporting
Payroll Administration
Performance Management
Benefits Administration
Risk Management
Separation Retire
Attract/Hire• Create Job Descriptions
• Salary Planning
• New Hire Orientations
• Employee Onboarding (New Hire Reporting)
• Ensure I-9 Compliance
• Federal & State W-4 Filing
• State Withholding forms
• WOTC Tax Credits
• Background Check & Drug Testing
• Maintain all Company Documentation
HR Compliance & Reporting• Employee Handbook
• State & Federal Compliance
• Ensure compliance with FLSA, ADA,
Title V11, FMLA. ACA, ADEA etc…
• Maintain Employee Files
• Labor Law Postings
• Employee Relations Management
• Employee Disciplinary Plans
• Management Training
Payroll Administration• Tax Compliance (State & Federal )
• FICA, FUTA, SUTA
• Quarterly & Annual Tax Reporting
• Regulatory Compliance
• Online Web based HR/Payroll System
• 24/7 Employer & Employee Access
• General Ledger Interface
• Management Repots
• Online Service Center
• Payroll Record Keeping
• W-2 Processing
• Garnishments & Deductions
• Performance Review Tracking
• Job Costing
• Track Vacation & Sick Time
• Direct Deposit, Hard Checks or Payroll Cards
Performance Management• Performance Evaluations & Tracking
• Growth & Development Programs
• Training Programs – Onsite or Online
• Behavioral Assessments
• Employee Satisfaction Surveys
Benefits Administration• Affordable Health, Dental, Vision, Life, 401k
Disability, HSA, FSA Wellness plan, Employee
Assistant Plans EAP & much more…
• Benefits Call Center
• Annual & New Employee Enrollment
• Compliance with IRS Section 125, COBRA, 5500
Filings, HIPPA
• Invoice Reconciliation & Payment
• Employer & Employee Online Web Access
Risk Management• Provide low cost pay as you go Workers Comp with
no Annual Audits
• Analyze & Recommend Safety Protocol
• On-Site Safety Inspections
• Safety Manual
• Safety Training & Certification
• Claims Management
• Initial Claim Reporting
• Post –Accident Drug Testing
• Fraud Investigation
• Back to Work Program
• OSHA Recordkeeping
Separation/Retire• Employee Exit Interview
• COBRA Administration
• Unemployment Claims Management
• Termination Assistance & guidance
© 2010 PEO Consulting Group, Inc. Used with permission by HROplus.
HR OutsourcingCost of the Service
HR Outsourcing
Administration Fees*Simply a baseline - Costs May Vary by Industry & Location +/- $100 Per Employee/Per Year
1-5 Employees
$1,300
Per Employee Per Year
6-10 Employees
$1,100
Per Employee Per year
11-20 Employees
$1,000
Per Employee Per Year
21-50 Employees
$900
Per Employee Per Year
51-100 Employees
$800
Per Employee Per Year
101-200
Employees
$600
Per Employee
Per Year
200+ Employees
Less than $300
Per Employee Per Year
Admin Fee is Broken up and Paid Evenly with Payroll
• Weekly Payroll would have 52 payments
• Bi-Weekly Payroll would have 26 payments
• Bi-Monthly Payroll would have 24 Payments
• Monthly Payroll would have 12 Payments
Manufacturing Company
30 Employees * $900
= $27,000 Per Year
Paid Weekly
Only $519.23 Per Week
Example
Consider this
For the cost of One minimum wage employee:• Gain access to Entire team of HR Professionals
• 24/7
• No vacation or sick days
• Free Payroll
© 2010 PEO Consulting Group, Inc. Used with permission by HROplus.
HR OutsourcingCalculating the Savings
Taking the same Manufacturing Company with
30 Employees that is currently paying:
• $144,000 A year for Employee Benefits
• $21,000 for Worker’s Compensation
• $4,500 for Payroll
• 8% for State Unemployment Tax
• They calculated that they are paying
• $8,000 a year on HR Services
• $3,500 for 401K administration
$40,856 in Total Savings
401K Administration Fees
Savings 100% $3,500
HR Administration
Savings Vary by Company 0-4% $8,000
State Unemployment Tax
Savings Vary by State 0-8% $2,856
Payroll
Savings 100% $4,500
Worker’s Compensation
Typical Savings 20-30% $3,465 (16.50%)
Employee Benefits
Typical Savings 15-25% $18,535 (12.88%)
Savings• $40,856
Minus
Costs
• - $27,000
Instant
ROI
• $14,856
HR Outsourcing
Annual Savings
Additional Benefits Besides Instant Savings• Increased Productivity
• Decreased Liability
• Higher Employee Retention
• Improved Business Efficiencies
All lead to Higher Profits!
© 2010 PEO Consulting Group, Inc. Used with permission by HROplus.
HR OutsourcingCost of Potential Fines & Lawsuits
Since 1980 the number of State and Federal
Labor Laws have grown Significantly.
Do you know them all? We Do
Did you know that the
average cost of an Employee
related Lawsuit in the United
States is $150,000?
And that is if you win!
Don’t Gamble with your Business
Our HR Team of
professionals will
Protect your
business! Making
certain that you are
in compliance with
all State & Federal
regulations.
© 2010 PEO Consulting Group, Inc. Used with permission by HROplus.
HR OutsourcingSelecting the Perfect HR Provider
#1 HR Needs Assessment• Before selecting an HR Provider you first need to know exactly what you need in a
HR Partner
• HROplus will work with you to complete an HR Evaluation which will highlight your
Strengths and Weakness and pinpoint exactly what services you require.
#2 Compatibility• Every HR Provider has a particular niche market that they service best including, Your
company size, Your location(s), Your Industry, Services Required, Benefits desired,
Technology and of course price
• HROplus will match your exact needs with the provider in our network to partner with
your company for the long run
#4 Member of SHRM or NAPEOBeing a member of SHRM or NAPEO ensures that
the HR provider is in good standings with no major
complaints or issues
#5 Proper LicensingMake sure the HR Provider is licensed to do business
in each of the states you are located in
#6 Level of Commitment to Customer ServiceService & Support vary greatly from provider to
provider.
It is very important to understand upfront how the HR
vendor will support your business
#7 Understanding the Benefits ProgramMaking certain that the benefits program is tailored to your
employees needs and that the pricing is fair
#8 Evaluate Their TechnologyThe key to a strong HR Outsourcing program is a powerful
HR/Payroll Software – Make sure to demo their system
#9 Check ReferencesYou will want to speak with several of their current clients and
ask them specific questions that will impact you
#10 The Fine PrintYou will want to review the Client Service Agreement and fully
understand responsibilities, liabilities and termination policies.
#3 Financial Viability• You want to make certain that the HR provider
has financials that are independently audited by
a CPA
• SSAE Certified or ESAC Certified
© 2010 PEO Consulting Group, Inc. Used with permission by HROplus.
HR Outsourcing
How HROplus can help
• HROplus is a Business Consulting Firm Specializing in the area of Human Resource Outsourcing
• Our goal is to increase your company’s overall value & profit by locating the best long term HR Solution
• We have established a network of over 200 of the best and most qualified HR providers in the country
• Wholesale pricing- Based on our Experience, Volume and Strategic Partnerships; HROplus has
established pricing far below industry standards which we are then able to pass along to our clients.
• After conducting your personalized HR Evaluation; we will match your company’s needs with the most
qualified HR provider in our network.
Benefits of Working with HROplus
1. No Cost
2. Save Time and focus on your day to day activities
3. HROplus eliminates the need for you to take sales calls and meetings with
multiple providers that are not the best fit for your company
4. Due Diligence – HROplus has already qualified the HR Vendors
5. Gain Valuable industry insight from an unbiased HR consultant
6. Access to the Best rates in the industry
© 2010 PEO Consulting Group, Inc. Used with permission by HROplus.
Schedule an HR Evaluation Today
Call HROplus 866-476-7587
e-mail [email protected]
Jeffrey S. Morin
President, HROplus