PEO CASE STUDY
REDUCE COSTS AND FREE UP TIME WITH CBR’S HR SERVICES
Case Studies: Results After Hiring CBR, an HR Outsourcing and Employee Leasing Firm
When we began working with CBR, one of the many pleasant surprises we had 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 to ensure that each job was profitable.
Today, my company has 47 employees and we have a great relationship with CBR. CBR has serviced our company better than either of the previous national HR outsourcing and employee leasing firms 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 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 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. When interviewing, we had all the pieces in place so candidates 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 and were included in their HR Services. We would have surely missed some of those items had we been on our own.
Another Company Profits by Hiring an HR Outsourcing Firm
Our company buys homes from homeowners who are looking to have a quick escrow and a hassle-free sale. We have eighty employees and are based in Phoenix. We understand the need to have professional outsourcing for our human resource functions. Having worked with HR Outsourcing firms in the past, we have gained an appreciation for and awareness of the work these firms do to relieve the burden of many day-to-day HR tasks.
Previously, in addition to working with HR Outsourcing firms, we also 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
After working with a Phoenix-based PEO for a year, we decided to accept proposals from other area HR Outsourcing companies, and Creative Business Resources (CBR) was one of the firms that put together a new proposal. We knew CBR had a reputation for providing excellent HR services and products through access to knowledgeable, ethical, and energetic professionals.
We’ve found that 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. CBR has received an “Arizona Company to Watch” award from the Arizona Small Business Association (ASBA) and has been 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 preparing a proposal for our company the professionals at CBR recognized that we had been overcharged on our payroll taxes.
CBR conducted a labor burden analysis to show us what the company was paying in taxes through its former HR Outsourcing firm. The analysis included a breakout of all payroll related expenses including wages, workers’ compensation insurance premiums, taxes and administrative fees, and it was through this analysis that CBR was able to determine that we were being overcharged by $55,000 per year on our payroll taxes.
Once we became aware of this discrepancy and reviewed CBR’s proposal, we recognized that CBR was the HR Outsourcing company that would best meet our needs. CBR put everything on the table for us, which was exactly what we were looking for in an HR partner. CBR provided a line-by-line explanation of expenses, offering us a level of full disclosure we hadn’t enjoyed in the past.
Initially, we engaged CBR to handle just our payroll. CBR’s responsibilities included preparing the bi-weekly payroll, paying payroll taxes and providing workers’ compensation coverage, but we quickly saw the value in working with CBR and began to look at the other services that they offered.
When we asked CBR to review our employee benefits program they found that a variety of oversights were being made in benefits administration, costing us thousands of dollars in unnecessary premiums. CBR was able to provide us with upgraded benefits while simultaneously decreasing associated costs.
HR Outsourcing Relationship had a Tremendous Impact on the Business
These two fundamental changes saved us approximately $65,000 annually, and we continue to benefit from the attentive and professional manner with which their CBR representative handled our account.
“I am so happy to be working with a company that prides itself on being honest and forthcoming,” says Alan, one of the owners. “The professionals at CBR have not only saved us money, but have shown me excellent customer service every step of the way.”
Over the next few months, CBR began providing the following additional services to the company:
- Vacation/paid time off tracking
- Health insurance packaging and enrollment
- Life insurance and long-term disability coverages
- Employee handbook updates
- Time and attendance tracking
The eventual result was that the company quickly transitioned from a payroll services client to a client that took advantage of CBR’s full spectrum of HR offerings.
Today, the company 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 a business and has made CBR a trusted business partner.
Successful HR Outsourcing Partnership Leads to Big Savings
In the end, CBR saved this client approximately $120,000 in payroll taxes and benefits costs. 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 companies 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.