Is Outsourcing Human Resources an Option for Your Company?

In today’s economy, companies are looking for new ways to reduce costs and increase productivity.  While outsourcing IT and other functions have been widely accepted as a means by which to bring in expert help for a reasonable cost, outsourcing human resource functions has been an area less companies have explored.

Last week, I met with Cindy Boyles, co-founder and President Carciba Business Services (www.carciba.com).  Cindy graduated from Georgia Tech and has more than 19 years experience working with companies in the high-tech arena as well as financial services, civil and structural engineering, healthcare, marketing, logistics and printing among others.

With both of Carciba’s founders having worked in the outsourcing capacity, they were eager to take the best practices of HR Outsourcing and create their own business model.  Combining over 30 years experience across various industries, including Fortune 100 companies, Carciba’s founders concentrate on manager/director level HR support to emerging and established companies.

Interview with Cindy Boyles, co-founder and President of Carciba Business Services, Inc.

Who can benefit from outsourcing human resources responsibilities? Most often companies of 20 to 500 employees who need human resources support but do not want or need to hire a senior level position on a full time basis.

What are some catalysts for outsourcing? Growth decline, attracting the best employees, keeping the best employees but most importantly, SAVING MONEY!

How do your client companies benefit from utilizing this model versus a PEO? A PEO is a Professional Employer Organization who becomes the employer of record for tax and insurance purposes, filing paperwork under its own identification numbers. These can be helpful for organizations starting out who need someone to handle the human resource administrative functions for their company or companies who are too small to provide insurance benefits to their employees on their own. Typically billing is based on a percentage of payroll, and as the company grows so do the expenses associated with the PEO.  Some of the PEO fees may also be hidden within the benefit costs or taxes as well.

Conversely, Carciba’s billing is handled on a straight forward hourly basis. We offer the ability to bill our clients by the hour versus per head. This results in dramatic financial savings and expense control for growing companies. Our fees are transparent and not built into benefits or payroll so the company retains control and flexibility over the budget.In terms of experience, all of our team members have years of HR experience and can step in and handle employee issues from day one.

How would this work in my environment? Carciba’s outsourcing business model is flexible – if there is no HR presence within the company, we often work in the forefront and act as the HR Department so the management team can stay focused on core business activities.  For the clients that have an existing HR Representative on staff, we work with them in the background and offer experience, education/certifications, knowledge, protection, and most importantly success.

What do I need for look for in an outsourcing firm? Ask to meet the HR representative that will support your firm, and not only the Salesperson.  You should review their resume.  Do they have 15 years experience or 2?  Experience equals knowledge.  That in turn saves you money in terms of work spent on a project and can prohibit issues within your company resulting in an unfortunate lawsuit.  Billing structure is a key deciding factor.  Are the fees transparent or are they built into your benefits, payroll and taxes?

Bottom line – human capital typically makes up 80% of a company’s expenses.  Solid well defined HR practices will assure that you are getting the most of your employees, and of your investment.

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