What a professional employer organization can do for your business, Pt. 3: human resources servicesArticle added by Eric Snethkamp on March 11, 2011
Ranked: #512 (175 pts)
It has become increasingly clear that the duties required of a typical HR department are numerous and wide-ranging. It should also be clear that an HR staff should be well populated with professionals experienced in many disciplines. This is an area of significant importance where employers experience great value in partnering with a good PEO.
In part one of this six-part series of articles, we discussed the basics of what a professional employer organization (PEO) is and a general overview of what it does. Part two discussed payroll and tax administration. This article discusses human resources services (HR) and includes a few services that you may be surprised to find can be handled by a good PEO.
Many small- and medium-sized businesses mistakenly limit the duties or size of their HR staff in an effort to save time and money. But throughout this series of articles, we will talk about a wide range of services that can be delegated to the HR staff and how neglecting many of them can lead to a significant loss in profitability. Tasks such as collecting accounts receivable and helping to work through employee personal issues can be time consuming and are not normally handled by a PEO. The sheer quantity of duties handled by your HR department can lead to overworked staff resulting in costly mistakes, personnel turnover or important HR duties being overlooked. For most businesses, the first reaction is to hire more staff to handle all of the work. Needless to say, this costs time and money, decreasing profitability.
Below are some of the HR services which can be handled by a good PEO, in addition to those listed in parts two, four and five of this series of articles.
- Resume searches
- Job posting
- Interviewing to bring you “qualified” candidates
- Pre-employment assessments
- I9 immigration checks
- Job descriptions
- Wage analysis
- Employee handbooks
- Counseling and discipline assistance
- Unemployment claims and hearings
- Discrimination and harassment training
- Dispute resolution programs
It should become increasingly clear that the duties required of a typical HR department are numerous and wide-ranging. It should also become clear that an HR staff should be well populated with professionals experienced in many disciplines. This is an area of significant importance where employers experience great value in partnering with a good PEO.
Hiring alone can fully occupy one or more staff members time when it is done correctly. Every business should aspire to hiring the best trained people for the position and to keep that person in his or her position for as long as possible. A high rate of employee turnover is costly to most businesses. The time and expense involved with finding, qualifying and training an employee is something that should be limited in order to maintain profitability. In part five, we will talk about keeping these valuable employees with your business for the long haul through the use of appealing benefits packages.
We raise the stakes again when we start talking about the necessity of producing quality employee handbooks, providing counseling and discipline, as well as discrimination and harassment training. Add to that unemployment claims, unemployment hearings and dispute resolution and the duties of an HR department can easily become overwhelming.
The value of a highly trained and experienced HR staff should be a priority for most employers, although the cost of such a staff can be prohibitive. Again, this is where a good PEO can be the best choice and add tremendous value for an employer. PEOs maintain a large staff of experienced professionals. This staff essentially becomes yours and allows the HR personnel you hired to be more effective in their duties. Your business is protected from mistakes made by overworked HR personnel and can provide a broader range and higher level of necessary HR services to employees. This arrangement also allows your HR personnel to focus on areas that can bring additional monies into your business such as accounts receivable. All of this is performed by a good PEO at cost savings to your business, as opposed to employing an equivalently proficient HR staff.
In fact, by partnering with a good PEO, you may find it easy to trim the size of your HR staff to just one or two competent personnel, saving you the costs of several salaries. All of these benefits add up to a recurring theme in these articles: increased profitability.
In part four, we will discuss safety and risk management.
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