 |
Human Resources Outsourcing Maintains Double-Digit Growth
Author: Ari Rosenstein  | Posted: 18-03-2007 | Comments: 0 | Views: 35 | Rating: (50)  (?) 
Human Resources gained a permanent role in the American workplace during the 1950s, as the evolution of employment-related laws and sociological trends took shape. However, the past 20 years have witnesses an unprecedented rise of employment litigation, labor regulations, and tax laws far beyond the expectation of their originators.
Effectively managing Human Resources has become a daunting and complex task for small to mid-market business owners. U.S. corporations must grapple with one of the most complicated systems of employment laws in the world. This includes a laundry list of unfriendly policies, including laws governing hiring and termination, family leave, sexual harassment, paying employees, leaves of absence, employee benefits, and workers' compensation. In just the first months of 2007, dozens of laws dealing with every subject from discrimination to wage deduction have been enacted.
Putting HR in Expert Hands
One solution for frustrated business owners is to turn to Human Resources Outsourcing. An HR Outsourcing firm allows companies to shift responsibility of nonessential jobs that can be handled easily, and inexpensively, by off-site experts. An HRO Firm can either specialize in a niche service, or in a wide range of management and strategic solutions. These broadly include:
Labor Law Consulting
Management Training and Employee Development
Employment Paperwork Administration
Employee Benefits Packages and Administration
Risk Management and Safety Services
Payroll and Tax Services
Insurance Solutions, including Workers' Compensation and EPLI (Employee Practices Liability Insurance)
In a recent survey by the Society for Human Resource Management, or SHRM, professionals in the industry were asked their opinions on HR outsourcing. Reasons to consider outsourcing included saving money, focusing on strategy, improving compliance, improving accuracy, lacking experience in-house, taking advantage of technological advances, and 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 experience a strong return on investment, according to a recent survey of American executives. The 2006 survey of executives at the IDC Midwest Conference in Chicago 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.
According to IDC, a market intelligence firm based in Massachusetts, companies worldwide are expected to spend more than $103.3 billion just on Human Resource Outsourcing this year, up significantly from the $61.2 billion spent in 2002. In the U.S., HR Outsourcing is the fastest-growing segment of business process outsourcing (BPO) and is expected to grow annually at a rate of 16 percent.
The frustration brought on by the government's obtrusive standards can be offset by the value found in HR Outsourcing. As any business who has experienced the benefits of HR Outsourcing will say, they finally have the peace of mind and time to focus on the only thing in business that really matters: their bottom line.
Rate this Article:
Current: 0 / 5 stars - 0 vote(s).
Article Source: http://www.articlesbase.com/management-articles/human-resources-outsourcing-maintains-doubledigit-growth-117972.html
 About the Author:Ari Rosenstein is the Director of Marketing for CPE HR, Inc, an HR Outsourcing and PEO firm servicing the small and mid-sized business sector. With more than 13,000 worksite employees in 24 states, CPEhr is one of the largest privately-held HRO firms in the nation. To learn more about HR Outsourcing, visit CPEhr at http://cpehr.com .
|
Submitting articles has become one of the most popular means of generating quality backlinks and targeted traffic to your website. Join us today - It's Free! |
|
Got a Question? Ask.
Ask the community a question about this article:
Q&A Powered by: 
Latest Management Articles
How to Choose the Right Management Consultant?
By: Editor-123 | 10/10/2008
Often managers face difficulties while selecting services of the right consultant for their respective needs. Choosing the best help from an outsider is a complex process, which requires special skills to ensure the end results. In this article, we'll discuss the main criterion to select a consultant for a growing company.
Should You Conduct Paid Surveys?
By: Ryan J Bell | 10/10/2008
Organizations that conduct surveys can benefit from the valuable information they provide. They can offer unique insight into customer perceptions, market opinions, employee morale, and daily operational issues. Aside from the proper design and execution of a survey, one of the main challenges is getting people to participate. Over the...
Why is it Generating Passive Income is Easy?
By: Trisha Rich | 08/10/2008
Generate passive income and work with your home based business using the advantage of world wide web technology.
Freeze Drying Services: Restoring Your Archives
By: Ben Anton | 08/10/2008
Museums, libraries and other organizations have the important and vital job of preserving historical archives and books for future generations. The best way for institutions like these to prevent document and archive loss is to implement storage techniques that will protect valuable articles against such catastrophes as flood or mold...
No One Wants to Hear They Have an Ugly Baby
By: TLS | 08/10/2008
It’s time to admit you have an, “Ugly Baby!” Or, in distribution terminology, “Admit your warehouse is in shambles!” If your warehouse has returns that sit around for days without being processed, “Your warehouse is in shambles.” If your warehouse has receiving that does not get received for days, then once it is received it sits again before it is put away, “Your warehouse is in shambles!”
Business Plans For Tough Times-5 Keys to Success
By: Maryann Shank | 08/10/2008
Do existing businesses need money? Probably.
Is this a time to start a business? Maybe.
In either case, the business plan you write today will be different than the one you wrote five years ago. Five years ago money was available. It is still there, but it is a lot harder to...
Service, Thy Name is Customer
By: Richard Laermer | 08/10/2008
Hello to you, the service person.
Yes, sure, we are all about service. It’s a funny word that has had more than a few crazy meanings. When someone says “I’m servicing” another, I immediately think something dirty.
Sorry, Big Doesn't Get the Job Done
By: Richard Laermer | 08/10/2008
The CEO of a fast-growing Web company recently asked me why he should hire RLM PR, an 18-person firm, instead of a so-called name firm. Having been in a self-owned service business for 17 years, I was confused by this query. What's a name? Never one to say "no" to a challenge, I am herewith answering him in public.
More from Ari Rosenstein
California Labor Law Challenges, and Solutions
By: Ari Rosenstein | 03/06/2008 | Human Resources
California employers need to be aware that California Labor Law differs from federal law in significant ways that can make life even more difficult, if not downright treacherous, for businesses with limited human resources expertise. That is why California employers are turning to HR Outsourcing experts for protection and support.
Human Resources and Employee Training
By: Ari Rosenstein | 29/05/2008 | Human Resources
In a difficult economy, with companies vying for the best talent, well-trained employees can make the difference between success and failure. More companies are recognizing the importance of proper human resources and employee training for their staff.
California Professional Employer Organizations
By: Ari Rosenstein | 29/05/2008 | Outsourcing
In response to the growing risks and time-consuming activities related to managing employees, frustrated California employers are turning to California Professional Employer Organizations in record numbers. PEOs are experts in all aspects of Human Resources and help small and mid-sized employers comply with the law and offer their staff enhanced training and benefits.
Small Business Health Benefit Challenges… and Solutions
By: Ari Rosenstein | 07/02/2008 | Outsourcing
After pay, health insurance is the most important inducement small businesses use to recruit and keep employees motivated. Yet many employers are finding the ability to provide cost effective health insurance more challenging as premiums continue to rise and the options available continue to decrease. Employers are looking at new ways to offer their employees benefit programs, and to keep them motivated. One of these ways is through a Professional Employer Organization.
Sexual Harassment Awareness Increases, But Risks Still Abound
By: Ari Rosenstein | 29/10/2007 | Outsourcing
Following the highly publicized lawsuit brought against Isiah Thomas and the New York Knicks, sexual harassment has once again reared its ugly head. Despite strides to reduce harassment in the workplace, employers must still do more to educate themselves and their staff. Professional HR consulting and outsourcing firms such as CPEhr provide such a solution.
Undocumented Worker Legislation - A New Reality For California Employers
By: Ari Rosenstein | 24/09/2007 | Management
When Michael Young* received a "No Match Social Security" letter from the Social Security Administration, he discounted it, as he had always done in the past. As the owner of Growing Expectations*, a small landscape design company in Southern California, he was too busy hiring employees, processing payroll and managing...
|
|
Business 
