Just as is the case with every other business transaction, you will want to do your due diligence as the stakes are very high. We suggest using the following set of guidelines in your research for an Human Resources Outsourcing partner. These guidelines, along with common sense, can assist you in choosing wisely.
Guideline #1: Assess the level of human resource and risk management (workers’ compensation) needs at your company.
Guideline #2: Select an HR services firm capable of meeting your expectations. This includes an analysis of health insurance products, payroll service issues, HR assistance and all workers’ compensation issues.
Guideline #3: Ask for client references. Read this HR Outsourcing Case Study.
Guideline #4: Ask what insurance companies the HR Outsourcing Company is using to underwrite the following coverages:
- Workers’ Compensation
- Health Insurance
Guideline #5: Is the HR Firm legally represented in areas of ERISA, labor and general business issues by attorneys with substantial experience?
Guideline #6: How many years has the HR Outsourcing Company been in business?
Guideline #7: Does your state require special licensing for compliance?
Guideline #8: How are the employee benefits funded?
Guideline #9: Does the HR Outsourcing Company employ professionals with appropriate designations and licenses for their areas of expertise?
Final Guideline – Correct payment of wages and taxes is crucial to shield your company from unnecessary liabilities.
In the HR Outsourcing arrangement, it’s our responsibility to pay your employer tax burden and file 941 each quarter. You will want to have some assurances that the HR company you choose is able to do so and will follow through with the task. Some HR companies will send you a notice from an independent third party stating taxes have been paid each quarter.
In order to effectively protect your number one business asset, your employees, your HR services company should have expertise in all areas of HR, not just payroll. For more information, contact us or request a proposal to discuss strategies about how to choose the right HR outsourcing company.