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Headache Free HR: The Small Business Checklist for Outsourcing HR

Making the leap to outsourcing your HR needs is a big decision – it’s essentially handing over the reins to a large, and very important aspect of your business to someone outside your organization.

Knowing it can be a very scary process, let’s go ahead and take it step-by-step and first examine the metrics that might suggest that it is time to consider outsourcing your HR needs to a Professional Employer Organization (PEO).

PEO CHECKLIST

Employee relations:

o   Is your employee handbook outdated, out of compliance, or just totally out of print!?!

o   Have you tried to implement a standardized process for performance reviews (but found it tricky to stick to a schedule, offer a standardized process, or simply get everyone on board with getting them done within a certain period)?

o   On the flip side, have you failed to implement a standardized process for disciplinary action that is compliant with all federal and state laws and that includes a clear pathway for employees to lodge complaints?

o   Do you struggle to understand the various discrimination laws as it pertains to hiring, promotions and other actions within your business?

o   Do you have a plan for employee disciplinary action and subsequent terminations?

Compliance:

o   Does your business struggle to professionally handle legal and administrative matters within house and find yourself outsourcing to experts to “fix problems?”

o   Do you find it difficult to stay up-to-date and in full compliance with federal and state labor laws?

o   Are you aware of any legal and administrative weaknesses, but aren’t sure how to fix them?

o   Are you unsure of which personnel documents you should keep and where you should keep them?

o   Are your managers unaware of how to write, provide and store personnel documents?

o   Are you unsure of how to best store medical records for your employees?

Safety

o   Does your company experience a high rate of accidents, near misses, injuries and illnesses?

o   Have efforts to improve the safety of the workplace fallen flat in the past?

o   Are employees unsure of how to report accidents, near misses, injuries and illnesses?

o   Have you failed to create a concrete plan for workplace injuries and workman’s comps, including a system for handling investigations, performing remediation where appropriate and handling the legal ramifications?

o   Do you struggle to perform workplace safety checks on a regular basis as required by law?

o   Have you failed a recent workplace safety inspection?

o   Does your business struggle to stay in compliance with federal, state and industry workplace safety regulations?

Payroll and benefits:

o   Has your company tried (and perhaps failed) to implement a standardized pay scale that is fair yet rewards employees for their performance?

o   Have you had trouble determining which of your employees are non-exempt and which are exempt (and thus struggle to determine which compensation plan they belong in)?

o   Do you struggle to remember which payroll taxes and other appropriate withholdings should be taken from each employees’ paycheck?

o   Does your company almost always mess up delivering that last paycheck?

o   Is coordinating paid-time-off, sick days and other employee leave a total headache?

o   Do you sometimes question how to handle FMLA leave requests (and the actual time off too)?

o   Are you unsure whether the benefits package that you are able to offer adequately meets the needs of your employees in terms of cost and choices?

o   Do you worry that you are losing top talent to your peers who are able to offer a broader array of benefit choices?

o   Do you wish you could offer more attractive retirement plans and pension benefits?

o   Do you struggle to navigate the open enrollment process and communicate the information to your employees to guide their selections?

o   Do you find negotiating the benefits process stressful and time consuming?

And finally…

o   Do you find that managing day-to-day HR services is a time-consuming and expensive process?

o   Is keeping up with day-to-day HR duties pulling you away from other company priorities?

Learn more about how to eliminate your human resource headaches with one decision.

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