Outsourcing the Biggest Part of Your Business
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowWhat if you’re forced to close your business’ doors without having the slightest idea it was coming? Best case scenario, you’re able to get an attorney who can help you save it, but nine times out of ten, the damage is irreversible. The dangers of non-compliance are real. They’re costly, and they’re jeopardizing many businesses. As 2019 nears, it’s time to evaluate the human resources (HR) issues that may be dissolving your business or your bottom line.
As an Administrative Service Organization (ASO), I’m hired by small and medium-size business owners and Fortune 500 companies to counsel, train and ignite change in organizations and help create cost-savings opportunities for employee benefits, workers’ compensation insurance, payroll services and HR. I train HR professionals within their organizations to ensure they’re providing the most value-driven options for business owners and remaining compliant. No matter the size of your company, even those with as few as 15 employees, you could have the potential to save up to five figures, or your business, when you evaluate your current options.
Let’s look at the major benefits of outsourcing the biggest part of your business to determine if an alternative HR solution is right for your organization:
Customized Benefits
Every business is different, but one thing remains constant, they all strive to operate more effectively. One way of doing so is remaining competitive in the marketplace. Attracting employees and improving employee retention is a hot topic for business owners. Improving competitiveness starts with substantial employee benefits packages. The best way to avoid breaking the bank while offering solid benefits packages is to customize your plan to fit your specific needs. With an ASO, businesses can choose from various health and ancillary carriers to create their own employee benefits package. This not only gives you the freedom to shop for the best price and package on the open market, but also provides you or your HR manager the convenience of a one-stop-shop with an ASO.
Cost-Savings
Whether it’s you or your HR manager, learning the administrative duties of your business is cumbersome and time-consuming. That’s when hiring an ASO to educate you or your staff to handle administrative duties for your business is extremely valuable. The time you save on training is extraordinary and you significantly reduce the liability. Without an ASO, your current costs for benefits may be higher than through the open market. With someone designated to evaluate multiple options, it’s easy to choose the best plan for your business and budget. When you add up the money, you could be saving thousands each year with more competitive programs, reduced training, and streamlined communication that comes with an ASO. It’s an extension of your business that’s equipped for the future and tailored to the needs of our organization, like it should be.
Compliance
What if you could eliminate communication with three different service providers – benefits, payroll, and workers’ compensation – and work with just one point of contact? The ASO manages all of these services for you so there is constant communication and no room for error. Typically, what I see happen for business owners that aren’t working with an ASO, is they term someone on the payroll and notify the health or ancillary carriers but forget to send a COBRA termination letter. If this is not completed correctly, your termed employee will need medical insurance and if it passes the window to qualify under COBRA, it could easily become a lawsuit. Having policies in place that are clearly communicated to your employees, is also essential for compliance and to avoid steep fines. Many business owners may not realize there is a hole or missing policy that’s vital for their business’ compliance. An ASO evaluates every administrative detail of your organization to mitigate liability and ensure you’re remaining compliant, always.
When it comes to running and growing your business, reducing your liability and cost of labor is no longer an option…it’s a must. Outsourcing the biggest part of your business can turn it from an expense to a profit center. While every business is different, the only way to truly know if you are protected, saving costs and providing the most value, is to talk with an expert that can help you navigate the maze of business obstacles.