Guidelines for HR Outsourcing2018-05-08T12:32:37-07:00

Guidelines for HR Outsourcing

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.

Tools for Shopping for an HR Services Company

We know how difficult it can be to find the right vendor. Features, benefits, location, and price are all important factors to consider. We also understand that finding the right vendor is serious business. Let’s face it, this is not like shopping for office supplies or furniture – this decision affects the lifeline of your business: your employees.

To help you in the process, here are a few suggestions to make the process simple, faster, and more effective.
RFP Template
This document is a template for a Request for a Proposal (RFP). It has been assembled by a team of experts at CBR to ensure that a client is asking for all of the right information from potential vendors. Please feel free to download it and update all of the highlighted areas to include your company’s information. Once you have updated it, consider which HR Outsourcing providers you would like to work with.

Price: FREE – We just ask that we be one of the companies you consider- so when you are ready, send a copy to

Download a RFP Template

In-Depth Labor Burden Analysis
The team at CBR has been regarded as a leader in ethical business practices in the PEO industry for many years. Whether you are currently with a PEO, payroll company or HR outsourcing company, or doing it the old fashioned way – we recommend that an in-depth analysis of your labor burdens be conducted every 18 months.
An HR Consultant will gather the required information and compose a report outlining your current costs, arranged in an easy to read, easy to understand report. This report will serve as a tool to put you in the drivers seat as you make decisions regarding Payroll, Benefits, Compensation, HR, Workers’ compensation.

Price: $750.00 – Includes report and a one hour discussion with an HR Consultant to review results. Cost refunded to any company who becomes a client of CBR within a 90 period of analysis completion.

For more information, contact us or request a proposal to discuss strategies about how to choose the right PEO company.

Sample Analysis Report