Home · Small Business Advice · Top 10 Tips On How To Select The Best HR Outsourcing Company

Today, many businesses will make the decision to outsource their Human Resources (HR) management. Who they elect to use as an HR outsourcing partner can make the difference between a positive experience and one that fails to meet expectations. Here are our top 10 tips on how to select the best HR outsourcing company:

1. Seek out a provider that can offer a total HR solution, from payroll, tax and employee benefits administration to regulatory compliance and employee services (i.e., Employee Assistance Programs; college tuition and adoption assistance programs; value-added employee services such as discounts for transportation, shopping, travel and entertainment, fitness club memberships; and flu shots, etc.).

2. Consider the credentials of the HR consulting firm’s staff. Do they have HR professionals who have earned such credentials as the PHR, awarded by the Human Resources Certification Institute, an affiliate of the Society for Human Resources Management (www.shrm.org), and the Certified Payroll Professional (CPP) awarded by the American Payroll Association (www.americanpayroll.org).

3. Look for a HR consulting group that applies Best in Class practices. In the case of PEOs, the Employer Services Assurance Corporation (ESAC, www.esacorp.org) certification is indicative of a company’s adherence to stringent financial, professional and ethical standards.

4. Expect a PEO to also hold The PEO Workers’ Compensation Risk Management Best Practices Certification which is an assurance that the company follows the insurance industry’s best practices in workers’ compensation risk management and cost containment.

5. Select an HR partner who will guarantee accurate and on-time tax payments

6. Select an HR partner with a strong emphasis on risk management and full compliance to all state, federal and local regulations as evidence by its thorough risk management programs and safety assessments conducted by certified risk managers, and training programs to assure adherence to various regulations and standards (e.g., Fair Labor Standards Act, Wage and Hour Laws, COBRA, Title VII, Americans with Disabilities Act, Family Medical Leave Act, OSHA, etc.).

7. Seek out an HR company that maintains strong relationships with other trusted advisors such as Certified Public Accountants, attorneys and insurance professionals whose roles extend into the Human Resources area.

8. Ask the HR service provider to provide predictable HR management and related costs so that your company understands its expenses and can develop accurate budgets.

9. Expect the company to apply leading-edge Human Resource Information Systems technologies to facilitate accurate, convenient and secure online access to benefit information for employers and employees alike on a 24/7 basis from any computer, anywhere.

10. Seek out an HR management firm who can readily provide references from companies who have been longstanding clients and who can attest to the quality of service and benefits derived from the relationship.