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The 3 Reasons Business Plans Include Outsourcing In 2015

Updated on July 2, 2015

STREAMLINE - Action item aids focus on core function of business.

Get ingenious with financial planning and scrappy with spending! Take a positive step to better protect yourself, your company, and your assets.

What new strategic initiatives are you looking into right now to ensure your bottom line stays right side up? Don't fail because you haven't covered the bases. While you're busy taking care of customers and growth strategies, don't be burdened managing the HR side of your business if you don't have to.

It's a constant battle to produce a superior service or product with efficiency, at times operating on a shoestring budget. Learn how to manage each employee to the highest degree of their productivity rate.

If you have one or two people in your administrative office and neither is a certified professional in human resources and professionally trained in compliance, risk management, and safety you might be playing a risky game with your business.


ADAPT BETTER INITIAVES - Action item to achieve employee focused goals.

For companies that have been around awhile, it may be time to rethink your operational model.

It's smart to look at outsourcing as a viable option to give you that extra layer of risk management for continued success. Outsourcing takes away burdens of risk you may not even know about or fully understand. And, outsourcing important functions that don't drive revenue provides you with more time to gain ground on your key strategies.

Professional Employer Organization's (PEO's) are licensed through the Department of Licensing and Regulation to efficiently take care of your payroll, workers' compensation insurance, employment claims management, safety training, and an entire host of human resource department duties. Financially speaking many offer their services for what you're paying to do all this stuff in-house (without their expertise).

A real threat to every company today is the employees themselves. A sharp PEO will better prepare, protect, and serve your interests. Nationally, small business employee-related concerns are growing at an alarming rate, such as; health benefits, fraudulent claims, wrongful termination, and a host of other employee issues that should be on your radar whether you have 2 employees or 200.


CERTIFIED PROTECTION - Action item ensures revenue and assets are protected.

There is less than a handful of nationally certified and accredited PEO's - if you want to examine this solution look for sound financial ratings, ethical business practices, audited financials, and a staff of experienced credentialed professionals.

PEO's that have been successfully certified by Employer Services Assurance Corporation (ESAC) are involved with an outside auditing group evaluating their business quarterly, assuring clients of their ethical practices, demonstrated financial stability, and documented regulatory-compliant operations. In addition, this certification provides their clients $11,000,000 surety bond for peace of mind (much like FDIC for banks).

A PEO must be very conscientious about keeping workers' compensation insurance experience ratings low and have apparent precautionary and after-the-fact procedures in place. Outsourcing clientele enjoy the PEO pay as they go model with no WC premium audits.

To hand over the outsourcing of HR duties can be a leap of faith. One common blunder made by business owners is not verifying the PEO's credentials before they accept a meeting with a representative in this industry. Verify PEO compliance with the Certification Institute's Workers' Compensation Risk Management Best Practices. And, one of the best websites to visit for credentials is the National Association of Professional Employer Organizations (NAPEO)

Additionally, quality PEO's offer a wide variety of benefits to client companies. As health care interest continues to grow, so does the level of complexity involved in benefits administration. If business owners want to provide health insurance, life insurance, or other health related or financial benefits they should look for a PEO with well priced plans already in place.

It doesn't make sense to outsource services separately as most all business owners currently operate, such as; payroll service, safety consulting, human resource consulting, employee benefits and insurance, etc. However, it does make sense to outsource all services from one reputable, competitively priced company.

Contact Information for Connie Laughlin:

Modern Business Management

By: [Connie Laughlin]

Method Management

Business methodologies (process management) are important to master and effective tools to use whether you’re a small business or large corporation.

If you’re looking for growth and profitability examine your options in search of the one that best suits your organization and needs. They are numerous in count; Six Sigma, Lean Six Sigma, Lean Production, Best Practices, and Blue Ocean Strategy to name some of the most popular.

When you’re studying these business models look for the one if applied brings efficiency in operating procedures and the most financial gain. Speed of reaching ones goals is relevant.

A company is known by the people it keeps. It takes time to keep employees running effectively and efficiently and ensuring everyone is in the right seat on the bus.

Risk Management

A business risk management analysis should review all liabilities. First, assess your risks, such as; employees HR solutions and safety procedures, product and services liabilities, tools and equipment, building and contents, customers, insurance policies, emergency preparedness, and the ability to maintain a profitable business keeping all your risk minimized.

When you’re up to your armpits in alligators, it’s hard to remember to drain the swamp. Ronald Reagan

Time Management

Yes, it seems business owners save honing their time management skills to the last item on their to-do list. Due to the poor time management skill sets of most businessmen it many times doesn’t even make the list.

Get a grip on your time. Key strategy - know the process management solution that will work best for your business, study the model and implement it. Become organized and prepare your management strategies well in advance. Leave no stone uncovered, or assets bare for someone to take a big chomp.

Outsourcing Management

One of the most effective solutions is to look at a professional employer organization service offering. You will streamline your operations with best practices and procedures in place, minimize risks, and contain your employee cost. The service offering includes: payroll administration, human resources, workers’ compensation insurance and claims administration, safety program, and optionally benefits.

Success means only doing what you do well, letting someone else do the rest. Goldstein S. Truism

Connie Laughlin is a business consultant for UniqueHR. You may contact Connie at (361) 852-6392 or at



By Connie Laughlin

Don't look the other way or ignore the important human resource issues associated with running a business. Fraud is running rampant these days. It's smart to ensure all the HR things are in place, even if everything is going well and you feel no pain.

There should be a normal sense of trust within your organization. I guess it's like the fact I leave my purse in the church pew when I go to receive communion. I don't honestly think anyone would take my purse in church, although it does happen!

Don't have a blase attitude about your employees.

My point is don't have a blase attitude about your employees, or you might find your troubles adding up to big dollars. Small businesses suffer the most with employee fraud! And, you're the most vulnerable when things are going well.

Business leaders should be focused on company operations and production - not the administration side because that's how you become successful! Although if the HR side of your business is not properly addressed you could stand to lose your shirt, pants, shoes, socks, etc.

According to the Association of Certified Fraud Examiners, employee fraud costs on an average around 5% of your revenue annually.

You need a certified professional in human resources to advise you and to ensure everything is in compliance should you find yourself in a grey area regarding any employee situation. You might think you're justified in firing an employee, only to find out later on it's going to cost you big-time should that employee file unemployment, workers' compensation, and/or EEOC claim/s against your company.

Not only do you have to worry about employee theft of at least 5%, but now you're dealing with possible fraudulent claims. All of this comes with the price of being in business, and then there's the unbudgeted legal cost you will be addressing. The alternative is having the proper HR policies and documentation of handbooks issued to employees that will mitigate false claims by employees.

If you have someone out on a workers' compensation claim and you believe it could be fraudulent wouldn't it be nice to know they were being followed by a camera crew while they went on their fishing trip and were carrying heavy ice chests, shoving off from dock, casting out fishing lines, and pulling up anchors?

You need to periodically assess your business for weaknesses. Risk assessments need to be conducted for safety hazards. If you operate a blue/grey collar company your safety program and training should be a top priority!

Your company's rules and regulations must be in place and adhered to regarding HR policies and procedures. For example; detailed policies on time and attendance, dress code, paid time off or holiday policies, sexual harassment, drug testing, and the list goes on. This is an area where you must have a Pro in HR. Your employee handbook should be updated when laws or your policies change; as this is your first line of defense should an employee file a claim against you.

The main goal of a human resource department or HR personnel is to maximize the return on investment for all employees while minimizing potential liability.

The salary range for experienced Certified Professionals in Human Resources starts in the mid to high five figure range. If you believe this is more than your small to medium sized company can afford you could outsource the HR duties to Professional Employer Organization companies on a percentage based fee, which is very reasonable.

The PEO puts better processes in place and for a lot less money than it would cost you on your own. "Outsourcing works well when the outside vendor brings a set of best practices that are outside your company's expertise" Bill Gates, Business @ The Speed of Thought.

The growing trend of outsourcing these duties to a PEO streamlines organizations in all areas of HR, such as; payroll, HR, safety, risk management, workers' compensation insurance and optionally benefits. This gives the business leader that much needed time to manage their business, while they grow revenue.

And, about that false security make sure your PEO is ESAC accredited (kind of like FDIC in the banking industry), by visiting This website will show you the PEO's in your state that have this certification. That's the only way you know your money's protected when you're working with this third party, the PEO.

The average 5% employee theft added to what it costs the company when employees are not getting their work done and other personnel liability issues that are addressed via the professional HR toolbox is well worth the price

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