HR Outsourcing

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Through this website, you’ll not only find a huge resource of competent American workers, you’ll additionally find a huge resource of American consumers – the folks who pay bills, who buy things, who invest money, and who most importantly, keep those dollars circulating in the country that matters right now.

That’s the long term. What about now?

Another area that we want to develop regards HR outsourcing, the third solution, because that too can help prevent our current joblessness from getting even worse NOW.

HR Outsourcing Defined

HR outsourcing, or human resources outsourcing, is quite common and is often used to reduce the costs of maintaining employees. With benefits and administration costs on a non-stop rise, HR outsourcing is becoming more and more popular… especially now.

In a nutshell, HR outsourcing is the re-hiring of fired employees. A company facing mounting costs will essentially fire all of it’s employees, but then re-hire them as outsourcing service providers (or independent contract workers). Typically, employees are contracted as a group — working under an HR outsourcing firm – but there’s no reason why they can’t be contracted individually. Using an HR outsourcing firm just makes things easier because the firm handles most of the contract specifications.

Other things that an HR outsourcing firm handles include payroll (checks, tax withholding, etc.), bookkeeping (application data, tax information, sick and vacation days, etc.), human resources (hiring, firing, evaluation, etc.), and benefits (health insurance, 401K, etc.).

You might already know a little something about HR outsourcing firms, especially if you’ve ever used a temporary employment service like Kelly Services or Manpower Inc. But temporary employment services and HR outsourcing firms differ in that temporary employment services hire and dispatch workers independent of a company’s business and needs. HR outsourcing firms hire a company’s employees only.

How HR Outsourcing Can Help the Struggling Business

People who work through an HR outsourcing firm are employees of the outsourcing firm – not the company that rents or leases them. This alone provides an impressive number of benefits for the struggling business – that is, the business that can no longer afford to maintain its work force. Here’s an introduction to some of those benefits, with uh, no pun intended.

Better Benefits for Employees

So yeah, one of the benefits of using HR outsourcing is… the benefits. Health insurance is often more affordable through an HR outsourcing firm because the firm is often in a better negotiation position. A small business of only 10 – 20 employees for example, may not be able to bargain with a health insurance company the way that a 100,000 employee HR firm can. With such a small number of members, there’s no real incentive for a health insurance company to lower its rates, extend a plan, or provide additional services. Not without an extra cost anyway.

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This leverage also lends to other benefits like workman’s comp as well. In these two instances, employees can be better off working through an HR firm while the hiring company can remove the financial burden of benefits cost.

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