Filed under: Human Resources, Outsourcing | Tags: "human resources consulting", employees, Human Resources, outsourcing, PEO
November 2, 2010
Outsourcing: It’s Not Just for Breakfast Anymore
By Jerold Hall, Director of Business Development
Landrum Professional Employer Services
When you hear the term “outsourcing,” one or two ideas are likely to come to mind. The most common and often negative image conjured up is of a very large firm cutting out entire department(s) and sending their jobs elsewhere. And to a small business owner it usually means engaging a Professional Employer Organization (PEO) or co-employment solution to outsource HR, Risk Management, Benefits and Payroll—administrative functions that allow the owner to focus on their core business.
Nearly three-million employees comprising over $68B in payroll are co-employed nationwide, and not just from small businesses anymore. A growing trend is that county administrators, school districts and other local government agencies are finding that “leased” or co-employed arrangements allow them to keep their current workforce in tact, offer them extremely competitive benefits and most importantly, cut or meet their budget requirements without sacrificing services to their customers.
Recently the Mackinac Center for Public Policy published a study on Michigan public school’s outsourcing of non-instructional services and the savings that were realized from these decisions. Rather than simply privatize these functions, which often concedes control of quality and employee selection, many schools chose to keep their staff in tact and realize cost savings by utilizing a PEO. By outsourcing and replacing the pension requirements with competitive 401k contributions, the district realized a savings of nearly 10%.
Outsourcing may not be the right answer for every company, district or department, but it is certainly worth a review to see if it is a good fit for your organization.
As Director of Business Development for Landrum Professional Employer Services, Jerold manages a staff of six business development managers. Jerold has 18 years of experience in business development, sales training and sales management, with such firms as Southern Company and IBM. Jerold majored in marketing at the University of West Florida and holds a Bachelor of Science in Business Administration.
Jerold is actively involved in the Suburban West Rotary Club, serving as President in 2007-08. He is a former Rotarian of the Year and has received two Paul Harris Fellows. Jerold is an accomplished author, with more than 70 articles and two books, Selling in the New World of Business and Sportsman’s Best: Offshore Fishing to his credit. He is an avid offshore tournament fisherman and serves as a field editor for Florida Sportsman magazine. Jerold, his wife Becky and their children Abby and Zach reside in Pensacola.
