HOW DOES HUMAN RESOURCE OUTSOURCING (HRO) WORK FOR MY COMPANY?

Through a Human Resource Outsourcing arrangement, the HRO organization provides Human Resource management services, employee benefits, training and guidance on employment compliance, payroll services and risk management (workers' compensation and unemployment). By transferring primary responsibility for these time-consuming and unproductive tasks to a company that specializes in these areas, you will free up your time to focus on strategic functions which can help you build your company and improve your bottom line. Outsourcing provides cost efficiencies and access to the level of expertise necessary to strategically align your company's HR activities and insulate your business from risk.

Because top business leaders realize that all duties performed within a given work day are not of equal impact on the company's bottom line.

As businesses grow, most business owners don’t have the necessary human resource training, payroll and accounting skills, knowledge of regulatory compliance or background in risk management, insurance and employee benefit programs to meet the demands of being an employer.

By focusing your time and energy on the “business of business” and not on the “business of employment,” your time and energy is spent on areas that will have the highest impact on driving revenue. Expenses are reduced as you outsource non-core functions to an organization that specializes in managing employment costs. Employees benefit from the services of a professional human resources department and expanded benefits package. It’s truly a win for everyone!

Since 1995, Doherty Employer Services has been accredited by the Employer Services Assurance Corporation (ESAC). In order to attain and maintain accreditation, an HRO must subscribe to a strict code of ethics and undergo quarterly audits by an independent CPA firm to verify net worth, timely payment of payroll taxes and benefit premiums, adequate reserves for insurance claims, etc. The accreditation criteria are so stringent, that at the time of this printing there are only a few HROs in the U.S. that are accredited. In addition to the quarterly audit criteria, the ESAC provides clients of participating HROs with tangible protection through the Client Assurance Program, with Surety Bonds guaranteeing our financial performance. To learn more, go to www.esacorp.org.

It's possible, yes. Whether you will recognize a hard dollar cost savings will depend on your current costs of internal employment administration. Many companies are already outsourcing functions such as payroll, their 401(k) plan, HR services and training, workers' compensation and unemployment claims management, Section 125 administration, insurance plans, COBRA administration, etc., and are paying fees for these services as a small business to multiple vendors. With Doherty, you're able to consolidate these services through one vendor relationship and take advantage of the economies of scale that a larger group has to offer. Another consideration that contributes to cost savings are soft costs. These are the areas where you and other key staff are currently spending valuable time that, with Doherty, would be freed up for more strategic functions. We save you the time that you would otherwise spend writing employment policies and producing employee handbooks, researching medical insurance plans, implementing a loss control program, providing HR and compliance training for managers and supervisors, processing payroll in-house, benefits administration, vacation and sick leave tracking, responding to unemployment claims, records administration, etc.

Employees seek financial security, quality benefits, a safe working environment and opportunities for retirement savings. When a company works with an HRO, turnover may reduce as the HRO implements efficiencies to lower employment costs. Job satisfaction and productivity increases when employees are provided professional human resource services, training, employee manuals, safety services and improved communications. And in many cases, a co-employment relationship with Doherty provides employees with an expanded employee benefits package, to include 401(k), life insurance, disability insurance, discount plans and more.

The expertise required to manage the human resource elements of a small to mid-sized business has outgrown the experience and training of many entrepreneurs who started these small businesses. Our industry is growing at a rate of over 30% per year, as business owners seek solutions to the increasingly complex “business of employment.”