Quick look: For some clients, HR outsourcing is the best of both worlds: they gain access to the same high-touch offerings as PEO clients but remain the employer of record. Here, explore how HR outsourcing services can help companies save time and money and serve as a way for brokers to differentiate and grow their book of business.
Adding new clients to your existing book of business and achieving high retention levels means maintaining detailed knowledge about the appropriate solutions to solve clients’ pain points.
And while professional employer organization (PEO) services may not always be the right fit for larger businesses in white-, grey- and blue-collar industries, a human resources (HR) outsourcing solution can be.
HR outsourcing is a highly configurable solution, providing the best of both worlds: access to the same level of service and support as PEO, while enabling businesses to remain the employer of record.
Here are nine important HR outsourcing benefits for brokers and their prospects.
Benefits of HR outsourcing for prospects
Prospects may have doubts about HR outsourcing without fully understanding the solution’s scope of services and value. These detailed benefits will help you mitigate their concerns and further the conversation.
1. A partner, not a replacement, for in-house HR teams
Companies with lean HR departments are the best fit for HR outsourcing. Offloading time-consuming daily tasks such as payroll, recruiting, compliance, employee leave of absence, learning and development, and onboarding frees internal teams to focus on strategic initiatives.
Unlike tech-only solutions, HR outsourcing provided by a PEO like ExtensisHR includes support and guidance from employment experts to enhance the capabilities of in-house staff, enabling them to direct their attention toward big-picture HR decision-making.
2. Retained control over day-to-day operations
Some prospects fear outsourcing HR will lessen their autonomy. However, most HRO and PEO solutions allow employers to maintain authority over hiring and firing. Though solution providers may offer procedural guidance from employment and compliance experts, employers are always in control of staffing decisions.
3. Customized benefits strategies
One size certainly doesn’t fit all regarding employee benefits strategies. Large businesses with significant insurance bargaining power may aim to “unbundle” insurance from a PEO engagement. Many HR outsourcing models can accommodate this and are structured to allow employers to contract comprehensive HR services and support without being required to come under the umbrella of a different group plan.
4. Process automation and consolidated key data points
Because businesses remain the employer of record in HR outsourcing engagements, sensitive employee data must remain under their control. As such, they should choose an HR outsourcing provider whose technology is built on an open architecture platform and can integrate into their existing systems (i.e., time-tracking, applicant-tracking, etc.). Businesses can continue using their preferred platforms and gain the advantage of an HR partner’s industry-leading technologies.
5. Dedicated customer service
Every outsourced HR solution provider claims to provide superior customer service, but unfortunately, they do not always deliver. A broker-centric HR provider’s success depends largely on broker referrals. Because of this high level of accountability, they tend to invest heavily in employee recruitment and training, delivering white-glove service and achieving industry-leading Net Promoter Scores, positive client reviews, and robust client references.
Ticketing systems used by big-box HR providers don’t support the level of service your clients expect and desire. Instead, consider working with a partner whose dedicated customer service model features HR Managers committed to acting in a proactive, personalized way.
6. Customizable HR solutions
Many HR providers re-package the same structure (and pricing) for all prospects. However, larger prospects with more employees often involve more stakeholders in deciding to change their outsourced HR solution.
On the other hand, consider choosing an HR partner that explores the client’s specific business needs and proposes a customized solution to match their organizational structure, budget, and precise workforce needs.
7. Added value
Many prospects are merely “satisfied” with their HR provider without realizing the possibility of obtaining a much higher level of value for their investment. Each of the benefits listed above is important individually, but when evaluated cumulatively, the amount of support and expertise delivered by the right HR outsourcing solution dramatically heightens their return on investment on HR spend.
Broker-centric benefits of HR outsourcing
In addition to the end-client advantages listed above, HR outsourcing also provides benefits for brokers, like:
8. A new revenue stream
Because healthcare is not part of many HR outsourcing solutions, you can win business even if the client remains with their existing healthcare broker. Often, brokers receive commissions on new HR outsourcing engagements, enabling you to grow your book of business with clients who are uninterested in a PEO solution or currently engaged in an existing broker relationship.
9. A way to stand out from competition
The customizable configurations available from some HR outsourcing solutions, like the one from ExtensisHR, help you stand out from other brokers who bring the same “big-box” HR and payroll processors to the table.
Suppose you have access to the HR vendor’s high-level decision-makers. In that case, you can quickly address questions and return to prospects with a customized package appropriate for their unique business needs. This can help you outpace competitors and differentiate yourself by proposing an innovative, configurable solution.
Protect and grow your book with HR outsourcing
Gaining an advantage in today’s competitive marketplace requires connecting prospects to the most appropriate solutions. The benefits of HR outsourcing are vast, and ExtensisHR’s solution is another tool in your toolbox to help businesses succeed and strengthen your reputation as a trusted business advisor.
ExtensisHR’s service-led approach and tailor-made solutions provide end-to-end support for HR, payroll, benefits administration, and compliance. Specifically, it features:
- Dedicated HR experts
- World-class customer service
- Personalized analysis of current HR practices
- HR regulatory reporting and guidance
- Risk management and safety services
- Benefit compliance and administration
- Tailored recruiting services and support
- Access to mobile-first Work Anywhere® technology to securely manage critical HR tasks from anywhere, at any time
- And more
A broker-centric organization, ExtensisHR is equally focused on your client’s success and your business objectives. Contact us today to learn how we can help organizations of all sizes simplify HR management.