Using Multiple Outsourced Vendors

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2 Table of Contents Introduction Hiring In-house HR Personnel Using Multiple Outsourced Vendors Partnering with a PEO How to Find the Right PEO Overview: Because there are so many options for your business, figuring out the right path to take for HRrelated tasks can seem unclear. This guide is here to help you compare all the different HR strategies, including creating in-house HR infrastructure, using multiple vendors or partnering with a PEO. 2 / 10

3 Introduction Nowadays, you have several options for HR, and with all these different options to compare, it can soon become confusing. Plus, as a successful business owner, you don t have time to research competitors and weigh all the pros and cons of each. With that being said, this guide accounts for the the most popular strategies when it comes to HR-related tasks including hiring in-house HR employees, using multiple vendors or partnering with a PEO. Therefore, you will be wellequipped with all the information necessary to choose the perfect option for your business. 3 / 10

4 Hiring In-house HR Personnel For starters, outsourcing isn t the only alternative when it comes to HR. You can also hire in-house personnel, which can give you the peace of mind in knowing that you are creating the perfect infrastructure for your company. But, with the many day-to-day tasks and employee-related issues, handling and understanding all the regulations and duties can be difficult. Not to mention, any missed deadlines can cost your company money. In a recent survey from Small Business Time Management, 18.4% of small business owners said that dealing with regulations was one of the biggest sources of their work-related stress. - nfib.com In addition, due to the enormous amount of work that needs to be done, there s an option to hire two or more HR representatives. Some larger companies use this tactic to help take some of the burden off having just one person for HR. But the problem with that is, you must have significant monetary resources to pay the salaries of two or more staff members, and most small businesses can t afford that. So although it may seem like a great idea and more cost-effective to hire someone internally for all your HR items, it actually may end up costing you more money over time. In fact, an average HR employee can cost up to 80k in salary, which indicates it may not be cheaper to hire an in-house employee at all. 4 / 10

5 Using Multiple Outsourced Vendors Some companies end up with a combination of vendors for their outsourcing needs. Which means, each vendor will handle specific tasks (e.g. Company A manages payroll and tax needs and Company B manages benefits administration and so on). This is a great arrangement for many since most of the HR responsibilities are outsourced to other companies; however, you now have to spend your time managing two or more companies. With multiple vendors steering different parts of your HR, keeping track of what each company is in charge of may cause an even bigger burden. Even though you are shifting some of the administrative tasks over to another source, you are still overseeing the overall project, which probably isn t saving you enough time to really focus on generating sales. 5 / 10

6 Partnering with a PEO According to the Small Business Owner Attitudinal Segmentation Report by Infusionsoft, 37% of business owners said their least preferred activities are related to human resources. If that s the case then why should small business owners have to deal with HR at all? The answer, they don t have to. Using a Professional Employer Organization (PEO) means you have all your HR needs met in one place. Small businesses thrive with a single provider because there s no longer a concern for the high price of an in-house HR representative or juggling multiple vendors. Since 2010, growth among PEO clients has been 9% higher than other small businesses, and 4% higher than growth in the U.S. economy overall. - Professional Employer Organizations: Fueling Small Business Growth, by Laurie Bassi & Dan McMurrer, McBassi & Company, September Plus, reputable PEOs only hire well-informed and educated HR staff so you don t have to worry about not being in compliance with the laws or if your employees will get their check on time. Companies such as UniqueHR have spent years providing small businesses with simple and cost-effective HR solutions. And they take pride in knowing that their highly-qualified staff are wellversed in all HR needs. 6 / 10

7 Partnering with a PEO What a PEO Provides: Complete HR Solutions Payroll & Payroll Tax Services Workers Compensation Insurance & Claims Management Benefi ts Administration Workplace Safety Retirement Management Compliance with Laws Staffing A PEO can provide the best and most cost-effective solution for your business. You don t have to worry about the cost of hiring additional in-house personnel or juggling between multiple vendors. The whole mission of a PEO is to provide your company with top-notch HR service, while also keeping your company current with regulations, so you can get back to growing your business. 7 / 10

8 How to Find the Right PEO Now that you know how partnering with a PEO works, the next question is, how do you find the right PEO for your company? Here Are 10 Helpful Tips for Finding the Right PEO: Evaluate your company needs Do you need someone to take care of your payroll? Do you need help identifying and mitigating your employment-related risk exposure? Maybe you need competitive employee benefits to help retain your key employees. Knowing exactly what HR services your company needs in order to thrive is the first step to finding the right PEO. So evaluate your business, and make a list of all the services you would like to take off your plate. Learn what different PEOs offer Some PEOs only offer a few HR services, while others offer a variety of services. So ensure that the PEO you would like to use offers everything that you need. Having a one-stop shop for all your business needs will save you loads of time. Helpful customer service staff Having a helpful customer service team is a must, so talk to the representatives at multiple PEOs and get an idea of how well you will be accommodated when you come on board. Meeting requirements One of the biggest things you want to be sure of is that the PEO is meeting all your state requirements. According to NAPEO.org, more than 30 states require licensing or registration for PEOs, so do your homework and make sure the PEO is meeting all the requirements of your state. NAPEO membership NAPEO (National Association of Professional Employer Organizations) is the largest trade organization for PEOs nationwide, and offers education and robust member services. When a PEO is a member of NAPEO, the company recognizes the need for the latest information concerning laws and regulations, while also staying up to date with education a must for a PEO. 8 / 10

9 How to Find the Right PEO Responsibilities Before signing a contract, it s important to make sure which party is responsible for certain tasks. Make sure you know what exactly is provided by the PEO and what you need to do on your end. Also, if you need to cancel your contract, make sure you understand just how the cancellation process works. Unfortunately, you can be penalized heavily if you break your contract. However, companies like UniqueHR and some others allow you to cancel at anytime with only a 30-day notice. That means you won t be stuck with a contract/company that may not be right for you. References Having a review from another company is always a good idea. This will give you inside information on any pros and cons of the company. So ask the PEO for client references. PEO s history Does the PEO have a history of adhering to the industry s best practices? If you don t know, you can check to see if the PEO is accredited by ESAC for their ethical, operational and financial practices. Staff knowledge Another important tip is to check the knowledge of the PEO staff. Since someone else will be responsible for all of your HR tasks, you want to make sure they know what they re doing. Ask the staff about their certifications and ongoing education initiatives. Employee benefits Your employees are so happy to have a comprehensive benefits package; however, does the package offer what your staff wants/needs? Talk to your employees and get an idea of what they want their benefits to look like. If the majority of employees want vision and dental and a PEO doesn t offer it, then that PEO is not the right fit for your company. As you can see, choosing the right PEO is just as important as choosing to use a PEO. So, select a company with a long history and one that adheres to all the laws and regulations of your state. 9 / 10

10 How to Find the Right PEO Partnering with a company such as UniqueHR, who have been in the HR industry for over 37 years, can make all the difference for your business. UniqueHR offers small- and mid-sized businesses complete HR solutions, risk management, employee benefits and many other services. UniqueHR consists of over 60 individuals that are the best in their field. They know the ins-and-out of their business and it s their aim to know the ins-and-outs of yours. About UniqueHR You Take Care of Your Customers. THEY Take Care of Your Employees. Since their inception almost 4 decades ago ago, UniqueHR has grown to become the premiere leader in the Professional Employer Organization (PEO) industry. Backed by their economies of scale and resources, UniqueHR is the trusted advisor and total human resource solution for small and medium-sized businesses. They focus on identifying and mitigating employment-related risk exposure, thus reducing employer-related liabilities and controlling associated costs. This allows their clients to focus on the core competencies which grow their business. UniqueHR Offers diverse solutions including in-depth capabilities in Human Resource Management, Employee Benefits, Risk Management, Payroll Services and Staffing. 10 / 10