5 Questions

Funny how life & work can get in the way of blogging, exercise, sleep etc., etc. Anyhow...time to get back in the saddle, as they say... I think a good place to start is to look back at fundamental parts of HR in a business and really focus on what can be better handled elsewhere, in an outsourcing relationship, so you and your team can get back to your core business to maximize profits & revenue. From what I've seen - especially in the small-medium segment (which I call 25-5000 employee organizations), there 5 main business drivers to consider and questions to answer for your growing organization...in this economy, or in any other:

1. Are you confident your business is protected from the risk of non-compliance? The number of U.S. laws & regulations regarding employment policies and practices has grown by more than 60% since 1998 (just 10 years - can you believe it?).
2. Is your organization faced with a decision to invest in new technology to support your HR, payroll and benefits needs?
3. Do you face challenges in recruiting and retaining top talent? The average direct and indirect cost of losing an employee can be up to 125% of that employee's annual salary.
4. Are your employee resources strained by the burdens of administrative tasks? This varies wildly by organization. The key question to ask you and your team: is it in the best interest of the business for me to be doing this?
5. Has the rising cost of health care diminished your ability to provide rich benefit packages to your employees? HR outsourcing companies are experts at handling these areas, though a little shopping for a PEO, ASO, consultant, or contract employee would be wise. Bottom line: if you have good answers/responses to these 5 questions, and are handling them in the most cost effective way, congrats to you - you're on the leading edge. For the other 98% of us, seek professional help (in the way of competent HR outsourcing companies and professionals.

Next Entry: HR Statistics (don't yawn - they may actually be good for you!).