HR Outsourcing Navigating to Higher Profits

© 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

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Our Mission is to improve owner's wealth by

delivering HR services in a manner that

impacts our client's profitability and business

value.


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


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


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


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


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


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


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


21-50 Employees

$900


51-100 Employees

$800


101-200

Employees

$600

Per Employee

Per Year

200+ Employees

Less than $300


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


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!


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.


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


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


Schedule an HR Evaluation Today

Call HROplus 866-476-7587

e-mail [email protected]

Jeffrey S. Morin

President, HROplus