Boom in outsourcing HR services

LIGHTENING THE LOAD: Lee A Johnson, center, Rhode Island branch manager for Adecco Employment Service, says the firm continues to benefit from outsourcing. Also pictured are New England Tech student Heather Briggs, left, and Adecco Recruiter Heidi Escude. / PBN PHOTO/NATALJA KENT
LIGHTENING THE LOAD: Lee A Johnson, center, Rhode Island branch manager for Adecco Employment Service, says the firm continues to benefit from outsourcing. Also pictured are New England Tech student Heather Briggs, left, and Adecco Recruiter Heidi Escude. / PBN PHOTO/NATALJA KENT

Outsourcing human resource functions may just be the wave of the future.
In recent years, contracting out for human resource services has become a popular option for companies of all sizes to reduce costs, as many have become “lean and mean” due to the Great Recession. Now, more employers are recognizing the benefits of using outside providers.
According to the U.S. Bureau of Labor Statistics Occupational Outlook Handbook, 2012-13 edition, employment of human resources specialists is expected to grow 21 percent from 2010 to 2020, faster than the average for all occupations. Job opportunities are anticipated to be good overall, most notably in the employment-services industry.
The trend reflects the conclusions of several studies. According to the International Data Corporation, a company that provides market intelligence and advice, outsourcing human resource functions is one of the fastest-growing segments of the “business-process outsourcing” industry. According to the Everest Research Institute, an independent research organization, HR outsourcing jumped 20 percent between 2008 and 2009.
Lee A. Johnson, the Rhode Island branch manager for Adecco Employment Service, Providence, has seen the increase firsthand. “There are a lot of advantages; it will save you money in the long run,” she said. “Business is booming. Our first big increase was in 2009, and the next year it quietly but steadily grew. In 2011 we had a very good year. So far this year, our numbers are better than the same time last year.”
Adecco USA has more than 900 offices in North America servicing a range of clients with a variety of workforce solutions. The client range runs the gamut from very large, national corporations to the smallest local business. “We also serve some very small companies where we might send in one person because there is a need to see someone, almost on an on-call status. We can help them with their accounting or to work on a special project, even with something like mailing distribution,” she said. “We also can help by providing high-level management positions,” Johnson said. The company helps others with a full compliment of human resource needs, from payroll to policy. “The reason why a very small company might decide to do payroll with us is because it allows them in this very unsettled climate of health care questions to offer their employees health care, where they couldn’t afford it. If they [do their] payroll with Adecco they get our services but at a substantially reduced rate,” she said.
Human resource services such as compliance with federal standards are also available to clients, many times at no cost. The company can provide guidelines and white papers and also offers online training.
And there are additional benefits. If an entrepreneur must use a contingency worker who does not work full time, Adecco covers the cost of unemployment. In a manufacturing setting, Adecco covers the cost of worker’s compensation.
At United Cerebral Palsy of R.I., in Pawtucket, the nature of their work requires the staff of about 300 people to use paper time sheets, making time & attendance record-keeping impractical and expensive to hire out. If that isn’t confusing enough, many of them are part-time. The company uses CSC Paymaster Inc., of Warwick for some of its human resource functions. “We review payroll information and make whatever corrections are necessary, then we submit it to them and they write the checks,” said Diane Bryce, director of human resources for United Cerebral Palsy.
Bryce herself is responsible for much of the HR functions, including policies and benefits. CSC Paymaster provided the HR software to track employee data, from email addresses to birthdays. CSC also stores their payroll for several years, a service Bryce personally appreciates. “It’s nice to know that information is out there online and easy to use,” she said. Fidelity Investments is another firm that supplies a broad range of services, from total benefit outsourcing to payroll and 401(k) plans. Christi Rager Wise is the senior vice president for product management for their Health & Welfare outsourcing division, which caters to an employee’s health, insurance and wellness. Fidelity can track eligibility, enrollment, record-keeping, coverage changes, COBRA and retiree health care administration.
“More and more employers are choosing to outsource because they realize that it is not core to their business and it’s getting more complicated to administer,” said Wise. “Think about health care and all the new wrinkles being thrown in. There have also been changes to W-2 reporting and other new requirements. Companies are also looking at more diverse health coverage and wellness plans. All of those complexities are not easy for a company to handle on their own.”
The company also runs a wellness programs for clients which can include personalized programs, incentives and tracking. “There’s a lot of reporting and effort to deliver these benefits to the employees,” she said. A website and a phone center keep users up to date, a multichannel approach.
Fidelity can also guide employees on health insurance options. Understandably, one of their biggest services is providing 401(k)-plan coverage.
When it comes to health & welfare, Fidelity tends to service larger-size industries, while its 401(k) clients are more evenly balanced.
“Business is good,” said Wise. “This is an area that is growing.” &#8226

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