As we face an uncertain economic future, one thing is for certain - employers must remain focused on cost-containment and improving efficiencies. One way businesses are addressing these employment challenges is through Human Resources Outsourcing.

1. Human Resources Outsourcing & Small Employers:
A Perfect Match in a Tough Economy
We are already approaching the mid-point of 2010, and the
economic forecast remains unclear. While pundits in the first
quarter predicted an economic rebound, albeit with a few
bumps along the way, the most recent economic indicators
remain mixed, at best. Just this week, the ISM (Institute for
Supply Management) reported that US supply sectors continued
to grow in May, for the third consecutive month. At the same
time, ADP released monthly employment figures well below analysts’ predictions.
As we continue to face an uncertain future, one thing is for certain - employers must
remain focused on cost-containment and improving efficiencies. One way employers
are addressing these employment challenges is through Human Resources
Outsourcing.
How Does HR Outsourcing Work?
Like any outsourcing relationship, human resources outsourcing is the practice of
using an outside expert to manage the day-to-day administration of non-essential
employment tasks. Off-site specialists handle the non-core activities related to
employment administration, payroll, benefits, taxes and workers' compensation
insurance. and other complex workplace regulations.
Primary Reasons to Outsource
There are many reasons why small companies outsource their HR functions. These
can include:
• Reducing employment cost and expenditures by accessing the HRO firm's
economies-of-scale
• Increasing corporate efficiencies
• Accessing more comprehensive and competitive health insurance plans
• Reducing risks and exposures related to governmental regulations
• Focusing internal resources on core business activities
9000 Sunset Blvd. Suite 900
West Hollywood, CA 90069
www.cpehr.com
877-842-4987

2. The Value of Outsourcing HR
In a survey conducted by the Society for Human Resource Management, or SHRM,
professionals in the industry were asked their opinions on HR outsourcing, and the
majority listed “saving money” as the No. 1 reason. However, other reasons for
outsourcing included:
• Focusing on strategy
• Improving compliance
• Improving accuracy
• Lack of in-house experience
• Taking advantage of technological advances
• Offering services they could not offer.
In that same SHRM report, HR professionals said the top function outsourced was
401k administration, along with training, health care and employee benefits
administration, payroll, staffing, background checks, recruitment and policy writing.
Once HR and other operations are outsourced, many companies are showing a
strong return on investment, according to a recent survey of American executives. A
survey of executives at the IDC Midwest Conference showed nearly 85 percent of the
respondents saved as much as they spent on outsourcing, with 26.4 percent
reporting a savings of twice as much. And the savings, according to nearly 95 percent
of the respondents, went toward operational performance and innovation, which
improved shareholder value.
To investigate if HR Outsourcing is right for your company, please contact us for a
complimentary HR Cost Analysis.
9000 Sunset Blvd. Suite 900
West Hollywood, CA 90069
www.cpehr.com
877-842-4987