them. Th en they should review diff erent companies to see if they match those needs. Areas you may want to consider are: • What location are services such as payroll and benefi ts
being serviced from? • What type of risk management services are off ered? • How deep is the human resource department and its
expertise? • What is the customer service standard for the company? • Is the pricing clear, with no hidden charges? • Does the management philosophy of the human resource
company seem to be a good fi t for their fi rm? "Th e biggest mistake smaller companies make is not
knowing what options they have and not streamlining by fi nding a partner that can meet more than just one need— why go to diff erent providers for training, payroll and benefi t services if you can get all three under one roof with one invoice?" Rettig says. "Th ere are several providers for HR services, so it's best to do your homework and fi nd one that best fi ts your group and your needs." And remember, the business owner maintains the
management and oversight of the outsourced HR department, and should expect to continue to act as if this resource is his or own.
"Th e relationship, if it is intended to work eff ectively, should
be one in which the HR provider reports directly to the person in charge of the organization and is a member of the management team and a true business partner," Fristoe says. "In this way, all lines of communication are open, business plans as they relate to HR activities are discussed with HR, and the execution by HR of such plans is more likely to be successful." It's important to keep in mind that this is a partnership
in managing employee-related issues, and the company should be comfortable that they can work on an ongoing basis with the human resources firm and its staff. It's also a good idea to talk with current clients of the firm for their firsthand experience. "I have witnessed in numerous location the unwillingness
of businesses owners to relinquish control of the payroll administration function," Hetzel says. "I've seen owners sitting behind computers for hours on end each week running their own payroll and tax calculations, printing and signing checks one by one, while their time could be better spent elsewhere. Th e lost opportunity and cost of time spent administering payroll and other human resource tasks alone is oft en enough to justify the cost of outsourcing to professionals who specialize in those functions." SCR
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