Outsourcing HR Brings Value to Your Clients

HR questions can be tricky and time-consuming to handle. But when you turn to an HR outsourcing provider you can choose from a range of ready solutions.

November 3, 2008
Sponsored by ADP Small Business Services

Small business owners view their accountant as their most trusted advisor, so it’s common that your clients’ questions often go beyond the financial. HR issues such as managing a difficult employee termination or knowing the current federal law around the Family Medical Leave Act (FMLA) can be tricky and time-consuming to handle.

Here’s where outsourcing can provide a strategic advantage for your firm. In fact, the Society for Human Resource Management (SHRM), finds that organizations can expect an immediate 10 percent to 15 percent or more savings in total HR spending, depending on how many of the functions are outsourced (Mid-Market HR Outsourcing: Making the Case, February 2006). To help you, outsourcing providers, such as ADP, provide HR and benefits solutions just for small businesses.

Starting the process, you’ll need to assess the resources of your firm then determine how outsourcing will increase your value to clients — without expanding your workload. You’ll find a choice of service levels with many ways to help your small business clients:

Getting Your Questions Answered

If your small business clients prefer to outsource and want simple and readily available advice on HR, compliance and payroll issues from trained professionals, they can use an HR Help Service. The service alleviates your time required to answer complicated questions about compliance, state and federal regulations, workplace policies or FMLA and other employment-related laws. A service like ADP’s HR Help Desk is an efficient way to provide answers to HR questions with easy access to certified professionals and HR information as needed. ADP’s Online Resource Library also provides convenient access to standard employment documents, including compliance information and federal forms.

Outsourcing HR Administration

An “a la carte” approach to HR outsourcing appeals to employers who need more than one HR service. Along with a dedicated HR expert, this level of service offers a flexible and integrated human resources management solution with everything from payroll and tax filing, employee assistance and training programs and HR administration. Some firms, including ADP, include optional 401(k) administration, flexible spending accounts (FSA) and workers' compensation premium payment programs that spread payments out over time. Each of these services is delivered on a single, integrated platform so clients don’t need to manage multiple vendors and you can focus your time on other strategic business initiatives.

Implementing Full-Service Outsourcing With a PEO

Professional Employment Organizations (PEOs) provide the most comprehensive approach to HR outsourcing. PEOs contractually assume certain employer responsibilities and employment-related liabilities, to provide small businesses with a bundled suite of services. Many of these services are ones that small businesses might not have access to on their own, including health benefits, 401(k), voluntary benefits, workers’ compensation and more. PEOs can help with a company’s strategic activities from managing regulatory compliance to attracting and retaining quality employees and administrating benefits.

Navigating HR issues can be challenging for both you and your small business clients. With many valuable outsourcing options available today, there is a service to support different levels of need — whether it’s someone to answer questions or a team to delegate full responsibility. As trusted advisors, you can help steer your small business clients to the best HR solution for them.

For more information, visit ADP Small Business Services.