Human Resources and Human Resources Services

6/29/2017           |      Print      Send to friend

Human Resources and Human Resources Services
Human Resources and Human Resources Services

Definition: The department or support systems responsible for personnel sourcing and hiring, applicant tracking, skills development and tracking, benefits administration and compliance with associated government regulations .

A human resources department is a critical component of employee well-being in any business, no matter how small. Human resources responsibilities include payroll, benefits, hiring, firing, and keeping up to date with state and federal tax laws.

Any mix-up concerning these issues can cause major legal problems for your business, as well as major employee dissatisfaction. But small businesses often don't have the staff or the budget to properly handle the nitty-gritty details of human resources. Because of this, more and more small businesses are beginning to outsource their human resource needs.

Human resources outsourcing services generally fall into four categories: PEOs, BPOs, ASPs or e-services. The terms are used loosely, so a big tip is to know exactly what the outsourcing firm you're investigating offers, especially when it comes to employee liability.

A Professional Employer Organization (PEO)

A Professional Employer Organization assumes full responsibility for your company's Human Resource Administration. It becomes a co-employer of your company's workers by taking full legal responsibility of your employees, including having the final say in hiring, firing, and the amount of money employees make. The PEO and business owner become partners, essentially, with the PEO handling all the human resource aspects and the business handling all other aspects of the company.

By proper definition, a service is only a PEO when it takes legal responsibility for employees. But take note--some Human Resources Outsourcing services like to use the recognized term "PEO" when they handle the primary aspects of human resource like payroll and benefits, yet don't take this legal partnership.

BPO - Business Process Outsourcing

Business Process Outsourcing is a broad term referring to outsourcing in all fields, not just human resources. A BPO differentiates itself by either putting in new technology or applying existing technology in a new way to improve a process. Specifically in human resources, a BPO would make sure a company's human resources system is supported by the latest technologies, such as self-access and human resource data warehousing.

ASPs - Application service providers

Application service providers host software on the Web and rent it to users--some ASPs host human resources software. Some are well-known packaged applications (People Soft) while others are customized Human Resources software developed by the vendor. These software programs can manage payroll, benefits and more.

"E-services are those Human Resources Services that are web-based. Both BPOs and ASPs are often referred to as e-services."

It's important that you understand these service terms, but don't get too sidetracked by the names when interviewing potential outsourcing firms. The key to hiring the right outsourcing firm is knowing what services your company needs and then find an outsourcing firm that can provide them.

When you outsource human resource functions, some services go with the "all-or-nothing" approach, requiring that they handle all your human resource functions or none at all. Others offer their services "a la carte," meaning you can pick and choose from the services they offer. Typical services include:

  • Payroll administration including produce checks, handling taxes, and dealing with sick time and vacation time.
  • Employee benefits including health, medical and life insurance, 401(k) plans and cafeteria plans.
  • Human Resource Management including recruiting, hiring and firing. This also includes background interviews, exit interviews and wage reviews.
  • Risk management including workers' compensation, dispute resolution, safety inspection, office policies and handbooks.

Some services are full-service and will provide these as well as additional services like on-call consultants, who will come in to train or even settle a dispute.

Online services tend to be limited in their offerings, but you'll get added options like web access, which will allow you to view information (like benefits packages) and even make changes to such information online. Most will give you and your employees access to view their benefits plans, enroll in benefits, read policies, and make changes to current data.

What are the biggest advantages to outsourcing your human resource needs? Does your business allow you the time to personally deal with federal and state employment laws? A big reason businesses turn to Human Resources Services is that they don't have the time, or expertise, to deal with this. And if you choose to go with a PEO, you can pass the legal responsibility of your employees onto them.

You may also save money. You can usually count on a reduced benefits rate when outsourcing to Human Resources Services. Because they buy so often from vendors, they usually get a discounted rate that they pass on to you.

If you opt for an online service (ASP/E-Service), you don't have to purchase software, install it, and worry about configuring it. An ASP business model is hosting software, so you don't have to bother with additional software or installation.

So what are some key things you'll have to give up if you favor outsourcing to hiring a full-time, in-house Human Resources  Department? There are some definite drawbacks to not having an Human Resources Manager in-house. An in-house human resource person handles perks that you can't necessarily count on an outsourcing service to carry out--like looking into group offerings, building employee incentive programs, even taking care of recognition for employees' birthdays. And employees may want someone in-house--an impartial co-worker they can trust and see daily--to turn to if they have a work-related problem or dispute with another co-worker.

Because an in-house human resource person interacts daily with your employees, they will likely have more of an interest in your employees. For example, employees often appreciate having someone on staff who will help negotiate in their favor for certain benefits that are critical these days for employee retention (like 401(k) plans and vacation policies).

Also, in the case of using a PEO, giving up the right to hire and fire your employees may not be desirable for your particular business. Most PEOs insist that they have the final right to hire, fire, and discipline employees. While having the extra time and not having to deal with the stress of this may be appealing, you may not want this responsibility out of your hands.

And if you decide to use an e-service, the same issues you'd have with any ASP remain. When everything is stored and handled online, there are concerns about security as well as potential crashes, both of which can be detrimental to your business.

Common complaints about Human Resource Outsourcing range from payroll mix-ups to payroll not being deposited on time to denied medical claims.

So should you consider outsourcing? If you have fewer than 100 employees, it might not be a bad idea. At this size, you often don't have the resources for an in-house Human Resource Staff, so outsourcing is just right for you. You don't have to worry about managing all the details that are so critical to Human Resource in your business, and most small-business owners just don't have the skills and experience to do so. Remember, Human Resource Functions must be handled correctly as close to 100 percent of the time as possible; slip-ups can cause your business major problems.

If you have at least 12 employees, consider a PEO. Most PEOs only take on businesses with at least a dozen employees. Get recommendations and references for PEOs, and consider one that is part of the NAPEO (National Association of Professional Employment Organizations). The NAPEO is committed to educating PEOs. If a PEO is a member, it's a good sign that they are committed to being the best in the field.

If you're even smaller, online services are the way to go. These services are tailored to work with all sizes of businesses, even the smallest. You don't have to give up legal responsibility just yet, and you'll be able to easily access your information online. And since the charge is usually by user, you won't be overpaying.

If you're uncertain about outsourcing everything but know you don't have the staff or experience to keep it in-house, try outsourcing only certain parts, such as payroll and benefits. You can also purchase human resource software right off the shelf to support any in-house efforts.

Whatever you decide, make sure to keep your employees in the loop. They'll appreciate knowing that you're seeking the most affordable solution for the business while doing your best to meet their needs.

(Source: Entrepreneur)



Releted post

What do relocation services usually include?

What do relocation services usually include?

10/17/2017

Every single year, millions of people in the Vietnamese relocate for work – companies hire new employees from out of the area, current employees are sent on long-term assignments in distant cities...

Read more

What is Compliance Services?

What is Compliance Services?

7/18/2017

In some cases a company can, like any customer, decide to stop buying a particular good or service, and so even severance or shutdown costs can be under its control....

Read more

Payroll Service - Automatic Data Payroll

Payroll Service - Automatic Data Payroll

7/17/2017

A payroll service is a company that will, for a fee, handle all of these functions independently, freeing up the business owner's time for more important matters. Once an account is established...

Read more

What Are the Duties of the Local HR Assistance?

What Are the Duties of the Local HR Assistance?

7/15/2017

Local HR Assistance is an administrative professional who performs a variety of transactional duties in support of a business’...

Read more

Top of Best Payroll Services for 2017

Top of Best Payroll Services for 2017

7/13/2017

To help you find the right payroll service, we researched and analyzed dozens of options. Here is a roundup of our 2017 best picks for online payroll services and an explanation of how we chose them.

Read more

Choosing a Payroll Service: A Buying Guide for Businesses

Choosing a Payroll Service: A Buying Guide for Businesses

7/13/2017

Here's everything you need to know about what an online payroll service is, what it offers and how to choose one. If you already know what you're looking for, visit our best picks page to see...

Read more

What is Labour Outscourcing?

What is Labour Outscourcing?

7/12/2017

In implementing labour outsourcing, the licenced Labour Outsourcing Provider will recruit employees and assign such employees to work for another employer...

Read more

How to Start an Employment Service Staffing Agency

How to Start an Employment Service Staffing Agency

7/11/2017

The most common structure of employment agencies is a small office with a handful of internal employees who recruit candidates and sell employment services to local businesses. Even the largest international staffing companies...

Read more

Statutory Liability - Insurance

Statutory Liability - Insurance

6/14/2017

Another benefit of this type of cover is that it pays out for a wide range of different expenses. Any good statutory liability insurance policy should reimburse...

Read more

Definitions: Payroll Management

Definitions: Payroll Management

6/7/2017

An employer, regardless of the number of workers they employ, must maintain all records pertaining to payroll taxes for at least four years after the tax becomes due or is paid...

Read more

09 Tips for Talent Recruitment

09 Tips for Talent Recruitment

4/26/2017

Recruitment art is actually a pure spreading form because you do not merely to persuade others to try your product, buy service or even to do business with you but asking people to bet their career in your company.

Read more

Compulsory Insurance

Compulsory Insurance

4/15/2017

Any type of insurance an individual or business is legally required to buy. Compulsory insurance is mandatory for individual...

Read more

What is Labor Arbitrage?

What is Labor Arbitrage?

4/14/2017

Labor arbitrage is often associated with outsourcing or offshoring. The idea is that a certain set of skills could be hired in a different market, such as another city, region, or country for less.

Read more

Labor Dispatch Service

Labor Dispatch Service

4/14/2017

Labor dispatch also known as talent dispatch, staffing, workforce dispatch or workforce leasing, refers to a new type of employment mode by which labor dispatch institutions...

Read more

2016 BENEFITS & TRENDS

2016 BENEFITS & TRENDS

4/14/2017

2016 BENEFITS & TRENDS

Read more

10 methods of wrong recruitment must be avoided

10 methods of wrong recruitment must be avoided

4/7/2017

All companies are afraid of hiring the wrong person which causes lots of adverse effects on the company’s operations.

Read more

Do not blow your chance with great candidates

Do not blow your chance with great candidates

4/7/2017

Interviews are arguably the most important element of a recruiting process, but too often employers let themselves down by failing to properly plan and inform candidates of what to expect.

Read more

OBTAINING WORK PERMIT ASSISTANCE

OBTAINING WORK PERMIT ASSISTANCE

3/23/2017

In hanoi, the number of foreign laborers coming to Vietnam has steadily increased in recent years, surging to over 88,000 workers at the end of 2012.

Read more

The role and task of Talent acquisition specialist

The role and task of Talent acquisition specialist

3/22/2017

The Talent acquisition specialist has the role and task of recruiting talented new employees to a given company. This job requires the individual to have excellent communication skills.

Read more

Definitions of Staffing Solutions and Services

Definitions of Staffing Solutions and Services

3/11/2017

Here are definitions of the basic types of staffing services, as well as the occupational categories typically served by staffing firms.

Read more

REGULATIONS ON LABOR DISPATCH

REGULATIONS ON LABOR DISPATCH

3/10/2017

The Labor Contract Law of Vietnam or few country in the worlds requires enterprise(s) using labor dispatch services to sign an agreement governing the terms of such services ("Dispatch Agreement") with the relevant staffing agency.

Read more

The difference of Recruitment and Talent Acquisition

The difference of Recruitment and Talent Acquisition

3/9/2017

Talent Acquisition means a view of not only filling positions, but also utilization of the candidates and their skills that come out of a rigorous recruitment process

Read more

No more BAD HIRES- TIPS to HIRE WITH PURPOSE

No more BAD HIRES- TIPS to HIRE WITH PURPOSE

1/20/2017

If you want to have a great company, you can’t do so without great people

Read more

Search

Tags


Follow us