Tag Archives: HRO

3 Factors For a Happy HRO – Client Relationship

When a client decides to enlist the services of a human resources outsourcing (HRO) firm, they are entrusting the firm with a considerable portion of operations. If the two parties are on the same page, it can greatly improve a business’s human resources. If not, it can end up causing more harm than good and only complicate things.


What Clients Really Want in an HRO

While each client will have their own priorities, there are some common goals that are shared across the board. A major one is to make human resources less of a hassle. Clients don’t want to have to deal with arduous tasks and want to free up their time so they can focus more on running their business.

Clients want to know that an HRO will perform tasks with the same level of care and attention to detail that they would. They want a professional they can trust who will keep their business compliant with laws and running efficiently. Basically, business owners want to know that their HR is in good hands, and they don’t have to “babysit” to ensure that an HRO firm is doing its job.

To expound upon these client desires, here are three main factors that make for a happy HRO – client relationship.


1) Reasonable Prices

Affordability combined with quality is usually a big factor. Business owners tend to want customizability so they can right-size HR to the point where they’re paying for what they need and not paying for unneeded extras. That’s why a professional outsourcer should be flexible enough to meet the specific needs of different clients.

Hidden costs can be a source of irritation, so it’s important for an HRO firm to be upfront and not constantly hit clients over the head with unseen expenses. Accordingly, it’s helpful when a firm implements technology and common sense practices to increase productivity and lower overall costs.


2) Clear Communication

Due to ever changing laws and regulations in many industries, it isn’t always easy for clients to understand HRO. And with much of today’s collaboration being done virtually rather than face to face, it’s critical for the two parties to stay on the same page. To ensure a happy HRO – client relationship, it’s vital to have an effective means of communication so confusion and misunderstandings can be minimized.

This usually starts with an effective platform where information can be conveniently exchanged in real time. It’s also important for both parties to keep each other updated and exchange ideas as they arise.


3) Simple Outsourcing

Running a business can be difficult enough without having to deal with HR tasks on top of it. To truly build a sustainable relationship, an HRO firm needs to make the lives of their clients easier and eliminate the majority of grunt work that clients would normally face. After all, the primary reason for outsourcing HR is to reduce the amount of time a client spends on this area.

A happy HRO – client relationship is definitely possible when the two parties put forth the effort. When everyone works together, it’s a win-win situation because the client saves time and money, and the HRO firm expands its brand.

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payroll processing

Payroll Processing- Why it Pays to Hire an HRO to Do it

Payroll processing isn’t something that most business owners look forward to. It’s often an arduous and painstaking task that requires a lot of focus to do correctly. One alternative to traditional in-house payroll processing is to hire an HRO service to handle it. Here are some benefits of going this route and how it can improve operations.

Level of Accuracy

Being accurate is extremely important when it comes to payroll. Making mistakes can have some serious repercussions like penalties from the IRS. In fact, according to the IRS, “40 percent of small businesses pay an average penalty of $845 per year for late or incorrect filings and payments.” If something is severely botched, you could incur even bigger penalties that really set your business back. Not to mention, you can end up with some irate employees on your hands when mistakes are made.

Because there are new regulations being introduced every year, payroll keeps becoming more complicated. Fortunately, an HRO consists of highly skilled professionals who understand the process and know all the ins and outs. They know what it takes to be compliant with government regulations and can guarantee a high level of accuracy.

Time Saver

Whether you’ve only got two employees or several dozen, doing payroll is often time consuming. While you or in-house staff members are spending time on it, it means you’re unable to perform other important tasks like working on your marketing campaign and making sales. As a result, it can be a major detriment to productivity and potentially reduce your profit. Using an HRO is ideal because they will take care of everything and free up the time of you and your staff members. That way everyone can focus on more important matters that will benefit your business and help it be more productive.

Save Money on In-house Employees

There is also the issue of cost when it comes to payroll processing. While many larger companies have the budget to take care of this process in-house, smaller companies typically end up paying more than they would by outsourcing. That’s because of all of the activities required to do payroll quickly eat up money and squander employee resources. HR World states “if your business has fewer than 20 employees, there’s a very good chance that you can save money by outsourcing your payroll operations.”

Heightened Security

In a day and age where network breaches and information leaks are disturbingly common, you can’t be too careful when it comes to security. If company records and inside information winds up in the wrong hands, it can lead to problems like identity theft, data tampering, fraud and embezzlement. All of which can create some serious problems that can take months or even years to resolve.

Hiring an HRO is smart because they understand security risks and utilize the right technologies to keep payroll information safe. If something looks sketchy, they will be quickly alerted and address the situation before it becomes a major threat.

With all the complexity and complications involved with payroll processing, hiring an HRO can be a big help for your business. Not only does it ensure accurate reporting, but it can also save you time and money and protect financial information.


What is HRO? 4 Things to Look for in a Partner

Human Resources Outsourcing, or HRO, is a phenomenon that’s really caught on, especially with small to mid-sized businesses. This term is defined by Answers.com as “outsourcing the HR function to another company that specializes in HR.” The company that  outsources HR does not have its own internal HR department. Besides saving businesses time, this strategy is popular because of the financial savings, improved compliance with regulations, and access to sophisticated analytics.

Teaming up with a HRO partner allows your business to delegate tasks such as payroll processing, personnel administration, employee training, and benefits management. This gives in-house managers and employees time to focus on the core elements of running your business.

Because there can be a disparity among providers, it’s important to know what to look for. Here are four key things to look for when making your selection.


1) A Wide Range of Services

Ideally, a HR company will cover the entire spectrum of services so it’s a one stop shop. Whether it’s handling risk management, 401(k) plan administration, analyzing employee performance or finding temp workers, it’s nice to have a partner that can handle all of your needs. As your business grows, you never know which services you may need in the future, so a provider that covers all of the bases can accommodate that growth.


2) Compliance and Certifications

Regardless of your industry, there are often multiple regulations and standards that must be adhered to. Accordingly, a HRO partner should have some strong risk management programs in place to reduce the odds of serious issues arising. They should also make efforts to comply with local, state and federal regulations to avoid any legal backwater. Being certified with an organization like the National Association of Professional Employer Organization (NAPEO) is a good sign.


3) Extensive Experience

Although a relatively new provider doesn’t necessarily mean they’re ill-equipped, it’s in the best interest of your business to go with a tried and true HR company. Being in business for at least a decade shows that a provider has a reasonable level of experience and should be capable of handling your needs. It’s also smart to go with someone who has specific knowledge and experience in your industry.


4) Cutting Edge Technology

Technology plays a big role in human resources, so you should look for a partner that implements the latest systems. This will streamline communication in a way that you and your employees will benefit. It should also make it easier to transition into the future as technology becomes increasingly complex.


Taking advantage of HRO and everything that it brings to the table can yield big rewards for your business. Not only can you simplify operations and save money, but outsourcing should give you the edge over competitors and be a catalyst for growth.

Photo Source: Pixabay



3 Reasons Your Employees Will Love HRO

3 Reasons Your Employees Will Love HRO

Human Resource Outsourcing (HRO) is a strategy that’s perfect for many small to mid-sized businesses—and makes the lives of employees much easier. It also saves money and provides access to high-end technology. According to Inc.com, “the outsourced HR industry has grown to an estimated $165 billion annually, as nearly 85 percent of firms now outsource at least some of their HR functions.”


HR Outsourcing

Allocating HR duties to a professional company guarantees that your business meets compliance requirements. This helps to minimize risks from legal complications and makes it more efficient. Here are three reasons why your employees will love HRO.


1) Freedom to Focus on Their Duties

Unless you have employees who are solely dedicated to handling HR responsibilities, individuals may end up covering certain administrative tasks. Often, they may lack the knowledge and experience to adequately complete these tasks. This can be particularly problematic for smaller businesses with already limited manpower.

It can also be a distraction for team members working on more important duties, and can be a detriment to productivity. Outsourcing human resources is a great solution because HR tasks are left in the hands of qualified professionals. That frees up your employees so they can spend less time doing paperwork and focus on being more effective at their jobs.


2) Employee Development

Some common services offered by HRO companies are: going through new hire procedures, employee planning, and providing routine performance evaluations. As a result, you can expect to get the most from your employees and they can be equipped with the tools to perform their duties at a high level. Team members will be challenged and may develop skills that they never even knew they had.


3) More Benefits

Offering some key benefits can help your business attract and retain A-list talent. Typical benefits include health, life, dental, disability and supplemental plans. There may also be 401(k) and investment plans, which many employees will appreciate.

Perhaps a less obvious advantage is the team chemistry that can develop. By lowering your turnover rate, employees will spend more time, on average, working for your company. Team members can develop more rapport and get accustomed with one another’s working style. Over time, this chemistry can create an excellent company culture— one where your business is in a position to thrive.

With all these perks, it’s easy to see why employees are on board with HRO. Besides streamlining their daily tasks, you can offer advantages that many of your competitors can’t. All the while, you’re simplifying operations and protecting your company’s assets.

Photo Source: Wikipedia