HR Outsourcing Case Study 2018-05-08T12:32:36+00:00

Case Study on Hiring CBR, an HR Outsourcing and Employee Leasing Firm

In working with CBR, an HR Outsourcing firm, one of the many pleasant surprises that we encountered was the way they packaged our HR services. It made it easy to bid on jobs, as we knew our exact labor burden for each class code each month. This reduced my own time in bid preparation and helped ensure profitability for each job.

Today, my company has 47 employees and enjoys a great relationship with CBR as our HR Outsourcing and Employee Leasing firm. CBR has serviced our company better than either of the previous national HR Outsourcing and Employee Leasing firms that we had used, and the HR Outsourcing concept has served our business well as we have grown. I don’t worry about details, I just focus on what new markets and segments I can target as a fence builder in Arizona. Employee administration truly is the least of my worries each day.

Like many others, we started this company very small, in the backyard at my house. It was 1997, and there were only 5 of us: my wife, myself, my current CFO, David, and two crew members. Our initial draw to the HR Outsourcing concept was that we wanted to provide good benefits to ourselves and our small group of employees. What we found was that there were other HR services included that ended up outweighing our initial motive of providing employee benefits. 

First of all, we appeared as a large corporation to the employees we began hiring subsequent to the startup. When interviewing, we had all the pieces in place so they viewed us as a real player in the market with competitive benefits and pay. We also found, with great relief, that CBR was handling compliance issues we had no idea existed or were included in their HR Services. We would have surely missed some of those items had we been on our own. 

Roger, Phoenix Fence Builder

The Company that Hired the HR Outsourcing Firm

The PTE Real Estate Group, also known as PayingCashforHouses.com, is a company that buys homes from homeowners who are looking to have a quick escrow and hassle-free sale. They have eight employees and are based in Phoenix.  Owned by Nick Lynum and Alan Robinson, PayingCashforHouses.com understands the need to have professional outsourcing for its human resource functions.  Having worked with HR Outsourcing firms for two years, the owners have an appreciation for and awareness of the work these firms do to relieve the burden of many day-to-day HR tasks.

In addition to working with HR Outsourcing firms, PayingCashforHouses.com has used an in-house human resource representative.  The employee was responsible for recruitment, hiring practices and employee relations and also acted as the main point of contact with the HR Outsourcing firm.

Enter Creative Business Resources, Phoenix HR Outsourcing Company

After working with a Phoenix-based PEO for a year, PayingCashforHouses.com decided to accept proposals from other area providers of HR Outsourcing services.  One of the HR Outsourcing firms that put together a new proposal was Creative Business Resources (CBR), which provides human resources outsourcing to small- and medium-sized businesses in Arizona and the greater Southwest. CBR is well known for providing excellent HR services and products through access to knowledgeable, ethical, and energetic professionals.

CBR promotes a high level of integrity and respect for its clients and strives to deliver quality programs and excellent customer service.  The company is an active member of the National Association of Health Underwriters (NAHU) and the Western Pension & Benefits Council. CBR is dedicated to ethics and the local community and has been honored as a Better Business Bureau Ethics Awards finalist for several years. In 2007, CBR received an “Arizona Company to Watch” award from the Arizona Small Business Association (ASBA) and was named one of the “Best Places to Work” in the Valley by BestCompaniesAz and the Business Journal Phoenix.

The HR Outsourcing Proposal: Benefits of Working with CBR Revealed

While reviewing PayingCashforHouses.com’s background for the HR Outsourcing proposal, the professionals at CBR recognized that PayingCashforHouses.com may have been overcharged on its payroll taxes.

CBR conducted a labor burden analysis to show PayingCashforHouses.com what the company was paying in taxes through its former HR Outsourcing firm.  The analysis was a breakout of all expenses including wages, workers’ compensation insurance premiums, taxes and administrative fees.  It was through this analysis that CBR was able to determine that PayingCashforHouses.com was being overcharged by as much as $55,000 per year on its payroll taxes.  The company’s former HR Outsourcing company had overlooked a major responsibility and the company’s bottom line was suffering for it, unbeknownst to them.

Once PayingCashforHouses.com became aware of this discrepancy and reviewed CBR’s proposal, the owners recognized that CBR was the HR Outsourcing company that would best meet their needs.  CBR provided an ethical and professional service that put everything on the table, which was exactly what PayingCashforHouses.com was looking for in an HR partner.  CBR provided a line-by-line explanation of expenses, offering PayingCashforHouses.com a level of full disclosure they hadn’t enjoyed in the past.  PayingCashforHouses.com made the decision to work with CBR and signed on as a client in March 2007.

CBR was initially contracted to handle payroll services for PayingCashforHouses.com only.  CBR’s responsibilities included bi-weekly payroll, payroll taxes and workers’ compensation.  PayingCashforHouses.com immediately saw the value in working with CBR and began to look at other services that it offered.

CBR next reviewed PayingCashforHouses.com’s employee benefits program.  CBR found that a variety of oversights were being made with benefits administration, costing PayingCashforHouses.com thousands of dollars in unnecessary premiums.  Once again, CBR was able to provide upgraded benefits to PayingCashforHouses.com while decreasing the burden to the company’s bottom line.

HR Outsourcing Relationship Resulted in a Tremendous Impact on the Business

These two fundamental changes to payroll and employee benefits saved PayingCashforHouses.com approximately $65,000 by working with CBR.  In addition to the monetary savings, PayingCashforHouses.com also benefited from the attentive and professional manner with which their CBR representative handled their account.

“I am so happy to be working with a company that prides itself on being honest and forthcoming,” says Alan Robinson, one of the owners of PayingCashforHouses.com.  “The professionals at CBR have not only saved us money, but have shown me excellent customer service every step of the way.”

As CBR continued to produce superior professional results, PayingCashforHouses.com began to look to them for additional HR services.  Over the next few months, CBR began providing the following services to PayingCashforHouses.com:

  • Vacation/paid time off tracking
  • Health insurance packaging and enrollment
  • Life insurance and long-term disability offerings and enrollment
  • Employee handbook updating
  • Time and attendance tracking system

PayingCashforHouses.com fully embraced the variety of HR services that CBR was able to offer them.  The company quickly transitioned from a payroll services client to a client that took advantage and enjoyed the benefits of CBR’s full spectrum of outsourced HR offerings.

Today, PayingCashforHouses.com continues to utilize CBR for all of its professional human resource needs.  It has embraced all of what an HR Outsourcing company can do for its business and has made CBR a partner in the human resource arena.

Successful HR Outsourcing Partnership Leads to Big Savings

In total, CBR saved PayingCashforHouses.com approximately $120,000, including monies saved from payroll taxes and benefits payments.  These savings, combined with the invaluable client service that CBR provides, has created a successful partnership that benefits both parties.

While HR Outsourcing may not be the right option for every company, those that do outsource HR can increase savings and satisfaction by taking advantage of the extensive expertise that providers of HR Outsourcing services, like CBR, have to offer.  A partnership with a reliable and ethical HR Outsourcing company can save businesses time and money, while improving employee satisfaction and decreasing problems resulting from HR-related matters.  A true marriage of a company and its contracted HR Outsourcing provider can result in a seamless function that benefits the business and its employees.