TriNet and Venture Capital Firms: Three Case Studies Venture capital firms, like many other small companies, often try to handle HR internally until they make a costly mistake or realize the administrative burden caused by executing these tasks in-house. According to one VC customer, HR is never a profit center for smaller companies; rather, it s a source of legal and personnel headaches. Once a company has realized the need for a better solution, they typically outsource those business processes for which a solution is quantifiable such as payroll and benefits. This is most often how the relationship with TriNet begins. Once VC firms decide to partner with TriNet, they often find that the more strategic services we offer can create unexpected gains for their companies such as employment brand elevation, selected areas of employment compliance, and complete administrative management. Our expertise saves them time and money in many ways, and they value the service. It s a partnership that I intend to continue, said Asset Management CFO Bill Daniels. It allows us to keep our focus on our portfolio companies. It really has worked great for us. Each of the case studies included in this document outlines the story of a VC firm that made the decision to partner with TriNet and has experienced the tremendous benefits of the service. Whether they decided to work with TriNet because the time spent on administrative tasks was too great or the need for compliance was becoming increasingly evident, they continue the partnership because of the unique expertise, quality tools and exemplary benefits package that TriNet offers.
Firms: VIMAC Ventures Investment Mgmt. Company: VIMAC Ventures Website: www.vimac.com Location: Boston, Ma Joined TriNet: July 2002 Employees: 12 We know we are talking to an expert organization, and we are getting due care and process. We trust the services you provide. Praveen Sahay Principal VIMAC Ventures TriNet s Expertise Enables VIMAC Ventures to Focus on Core Business VIMAC Ventures is a Boston-based venture investment management firm, specializing in deploying capital to early-stage technology and biotech companies located in the eastern U.S. and Canada. Like many of the early-stage companies they work with, VIMAC found itself in a situation where human resources and employee-related responsibilities were being handled by executive level staff. We have a Chief Operating Officer, but we wanted him to use his time more strategically not deal with payroll or these other functions that can be highly standardized, commented Praveen Sahay, Principal with VIMAC Ventures. By partnering with TriNet, VIMAC is able to redeploy their people on more strategic initiatives. They gain access to a comprehensive human resources department that assumes responsibility for payroll and tax reporting, benefits administration, HR management and consulting, as well as other HR-related administrative duties. Trusted Expertise Regarding Complicated Regulations VIMAC found, like many small companies do, that navigating through the complicated issues of employee-related regulations and government compliance is a daunting proposition. Often, small and medium-sized companies have limited time and resources to dedicate to these complicated, but necessary tasks. It just makes sense to outsource these standard functions to an organization like TriNet. We know we are talking to an expert organization, and we are getting due care and process. We trust the services you provide, especially around compliance, explained Mr. Sahay. We want to entrust HR issues such as HIPAA and EEO to professionals. They have the knowledge to take care of these issues on our behalf, allowing our people to focus on taking care of our portfolio companies. TriNet proactively works with customers to minimize exposure to employee-related liability and risk, and also ensures compliance with governmental rules associated with ADA, EEO, FMLA, HIPAA, COBRA, and other regulations. Quality Customer Service, When You Need It Working in a high-touch, hands-on industry like managing portfolio companies, receiving high quality service from vendor partners is essential for VIMAC. Quality of service is important, said Sahay. TriNet s online system is easy to use, it s always available, and there is always someone to answer questions. Teaming with TriNet has provided VIMAC access to a Total HR services portfolio ranging from employee-directed services available online via HR Passport, to immediate access of an array of HR management and HR consulting services. TriNet has been very good; the people are good as well as the platform.
Firms: Vista Ventures Investment Mgmt. Company: Vista Ventures Website: www.vistavc.com Location: Boulder, Co Joined TriNet: January 2006 Employees: 5 When you re able to show great benefits, it really helps in recruiting. Molly Nasky CFO Vista Ventures TriNet HR Management Facilitates Vista Ventures Focus on Growth Vista Ventures is a small venture capital firm with offices in Boulder and Ft. Collins, Colo. that invests mainly in early and growth-stage technology companies. The professionals on their team are actively engaged in many of the businesses they support 70 percent have at least a board seat and they desired a solution to manage HR administrative activities. For our company, there hasn t been too much of a headache [caused by HR], said Molly Nasky, VP of Finance and Administration of Vista Ventures. Initially, we fought outsourcing benefits, but once we moved ahead, we would never go back. Prior to outsourcing with TriNet, the CFO spent 10 percent of his time on HR. The time saved, compliance and risk management, additional employee benefits offerings, and HR management has made the partnership worthwhile for Vista Ventures. You end up coming out on top when you add all of that up, Nasky said. More than Cost Savings When a VC firm is intimately involved in the businesses they invest in, the talent of the individual employees is crucial. For Vista Ventures, the impact of outsourced HR was most evident in their recruiting and retention efforts. Their partnership with TriNet allowed them to provide both current and prospective employees with a credible benefits package. Before we outsourced, we only had health and dental we didn t do any type of FSA or vision, Nasky said. Now, we re able to provide a much broader choice of benefits. When you re able to show great benefits, it really helps in recruiting. In addition to the benefits package, Vista Ventures also found value in the legal oversight provided by TriNet. When the company was managing its own HR processes, they called their legal counsel for advice on compliance and risk management. TriNet provided the company with timely information and served as a repository of information pertaining to all types of employee transactions. Even with my personal experience as well as that of the portfolio companies, I never would have thought about all of these issues, Nasky said. Working with [TriNet on HR-related legal issues] is a lot less expensive than calling your company counsel. TriNet provides Vista Ventures with more than payroll and benefits administration they serve as a full-service provider for all of their HR needs. This relationship has cut costs and administrative time. Also, this partnership has created a benefits package that employees value for them, it has created increased self-service and increase selection. At Vista Ventures, individual talent is a necessity, and TriNet has provided a critical tool to increase retention and recruitment while streamlining internal processes.
Firms: Asset Management Company: Asset Management Co. Website: www.assetman.com Joined TriNet: 2005 Location: Silicon Valley, Ca Employees: 14 Offering generous benefits is in sync with our firm s strategy for keeping and retaining people, so getting premium benefits packages from TriNet is a logical step. Bill Daniels CFO Asset Management Company Asset Management Focuses on Revenue and Strategy through HR Outsourcing Asset Management is a small venture capital firm staffed with professionals who seek to fulfill the company s vision of delivering real, fundamental change to economies, industries, and societies in the areas of information sciences and life sciences. But when CFO Bill Daniels joined the firm, he quickly realized that the firm could gain additional efficiencies in the realm of human resources. He had high-level employees who were handling HR issues and those employees had far better things to do with their time. Daniels recalls, Previously we had a Controller who, by default, was in charge of payroll and benefits issues. It didn t get a lot of her focus because she had far more pressing challenges in front of her. When I joined the firm, I asked what her biggest problems were, and she mentioned the time and energy spent on handling mundane HR administrative tasks. Fortunately, he already knew where to go. I had previously worked with an HR outsourcing company, so I told her We can take care of that. And I brought in TriNet. A Full Suite of Benefits and HR Services One of Asset s biggest concerns was the cost of healthcare; it just kept rising and rising. Daniels points out, With TriNet, we re able to join forces with thousands of other companies to get the purchasing power we need to obtain high-quality benefits. Offering generous benefits is in sync with our firm s strategy for keeping and retaining people, as we also offer generous compensation and a 401(k) match. So getting premium benefits packages from TriNet is a logical step. He continues, We gain other advantages as well. Prior to engaging TriNet, we had no employee handbook, no policies or processes written down, and no real documentation for workforce management and administration. That s a dangerous way to go but TriNet provides the infrastructure we need. A Long-Term Strategy The self-service features are beneficial to Asset s team as well. We like being able to tell our employees that all they ll need is a computer screen and a phone number to resolve most of their issues. TriNet handles the rest. Having TriNet as a single point of contact for Asset Management s entire HR function has proven to be a durable long-term strategy for the firm. It s a partnership that I intend to continue. It allows us to keep our focus on our portfolio companies. It really has worked great for us.
About TriNet TriNet helps small business entrepreneurs realize their ambitions by being their essential HR partner. As their Trusted Advisor, we help them contain HR costs, minimize employer-related risk, and relieve the administrative burden of HR, thus helping them focus on their number one priority their business. For more information, visit www.trinet.com.