OF HR OUTSOURCING. The Good, The Bad & The Ugly of HR Outsourcing. Presentation Goals 2013 HR FLORIDA CONFERENCE & EXPO

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1 2013 HR FLORIDA CONFERENCE & EXPO David F. Jefferson VP of Operations OF HR OUTSOURCING Presentation Goals Understand the Outsourcing Industry Evaluate the growth and history Consider HR Outsourcing as an asset to the organization - not a threat Realize the importance of diversification and strategic planning to expand HR functions and operations outside of the organization 1

2 Why HR must innovate every single day 2

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5 HRD Challenges and HRO Expectations Improvement Driven Reasons Improve Operating Performance Obtain expertise, skills and technologies that would not otherwise be available Improve Management Control Improve Risk Management Acquire Innovative Ideas Improve credibility and image by associating with superior providers 5

6 Outsourcing Benefits for HR Provides a greater resource for hands-on HR assistance and process delivery Access to HR products, services, programs and technology Assistance with employee issues Consolidation of compliance methods Relief from administrative burdens Reasons to consider HRO options Relief of administrative burdens draining growth and efficiency Technological improvements without significant investment Economies of Scale in employee benefits Maintaining efficiency and productivity in a tough economy Reasons to consider HRO options Adding additional services and products normally inaccessible Expanding expertise and services outside of the organization Simplifying processes and procedures Reducing overhead in staffing while maintaining or expanding current operations 6

7 2013+ Strategic Opportunities Not just Outsourcing but real convergence of new synergistic capabilities long term partnerships Access to leading-edge HR products, services, programs and technologies Integration with HRIS systems that contribute to the growth of the your business Consolidation of compliance methods Reduction in increasing administrative burdens 7

8 What are Professional Employer Organizations (PEO)? The PEO Industry began in the 1980 s Early pioneers struggled to develop a niche Initially, several bad apples gave the industry a shady reputation Florida was the catalyst state for the future of the PEO Industry 8

9 The Future Today, the National Association of PEO s (NAPEO) is a leader SHRM and NAPEO share common interests with national employment legislation Many PEO s develop best practices in Human Resources Outsourcing Today, there are over 720 PEO organizations nationally Employ more than 900,000 employees Service over 60,000 companies Pay over $25 Billion in Payroll FAPEO UI Task Force helped shape legislative reform in 2011 and 2012 Understanding Florida PEO s Regulated as Staff Leasing Organizations In most cases, the Client does not file State Unemployment The PEO is the Administrative Employer The Client is the Worksite Employer The Client maintains Direction and Control Multiple services and product sharing 9

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14 In summary 14

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16 Successful Strategic Outsourcing! Have a clear vision as to what outsourcing should achieve Understand the scope of the services to be outsourced Outsource the performance of a function, not the responsibility for it Maintain the role of gatekeeper Pick your HRO provider based on service, expertise, knowledge and references You Can t Spell HERO Without HR If we keep doing what we're doing, we're going to keep getting what we're getting. - Stephen R. Covey 16

17 David F. Jefferson Vice President of Operations Emerald Coast Parkway, Bldg B Destin, FL