Human Resources Outsourcing Case Study
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Human Resources Outsourcing Case Study

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Many organizations are looking to outsource human resources as they attempt to remain compliant in an ever-changing human resources landscape: learning the new employment rules as they relate to ...

Many organizations are looking to outsource human resources as they attempt to remain compliant in an ever-changing human resources landscape: learning the new employment rules as they relate to Health Care Reform, HR compliance and legislation, workers’ compensation insurance, and payroll tax reform. Even established businesses with fully-staffed Human Resources departments my find themselves confused or uncertain about certain legislative changes. That is why more and more employers are investigating the benefits of human resource outsourcing and how it may benefit their company.

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Human Resources Outsourcing Case Study Human Resources Outsourcing Case Study Document Transcript

  • 9000 Sunset Blvd, Suite 900, West Hollywood, CA 90069www.cpehr.com | info@cpehr.com | 800-850-7133Human Resources Outsourcing:A Non-Profit Case Study25 years ago, a non-profit organization was founded by two ambitious women withthe goal of helping individuals struggling with substance abuse, trauma and domesticviolence. In the beginning, they wore all hats of the organization, from managing theday-to-day duties, to strategically leading its mission. While feasible in the beginning,the organization began to expand in order to meet the needs of the community.Within a short number of years, they had grown to 250 employees in 12 centersacross the region.It was during this significant growth that the founders realized their internal HRdepartment was not adequately equipped to manage the employment challenges thatlarger organizations face. The President and CEO recognized, that even with an HRdirector on staff, it was nearly impossible for a single person to stay abreast of themany industry regulations and changes.The HR Outsourcing SolutionOver a period of more than a year, the company began researching alternatives tomanaging their human resources function. They interviewed three outsourcingvendors and ultimately selected CPEhr, a professional employer organization (PEO).After joining CPEhr’s PEO service, they were immediately assigned an HR specialist tomanage and oversee all the employee relations and employment needs. The firstpriority was to review the non-profit’s existing Employee Handbook and to update allits HR forms. Next, the PEO reviewed all the new employment regulations with itsexecutive team and scheduled training with their managers and supervisors.Once these priority areas were completed, CPEhr assisted the client in implementingregular management trainings. The objective was to provide all the non-profit’ssupervisors with the tools and resources they required to manage their roles moreprofessionally and effectively.
  • 9000 Sunset Blvd, Suite 900, West Hollywood, CA 90069www.cpehr.com | info@cpehr.com | 800-850-7133Tangible ResultsWithin six months of joining the Professional Employer Organization services, thebusinesses reported numerous tangible benefits - in addition to the employmentcomplian ce and human resources expertise they received, they also reported atangible reduction in their HR overhead. Based on reduced staff expenses and lowerinsurance costs, the non-profit estimates they save approximately $35,000 annually.While many organizations don’t face the exact drivers that led this non-profit tooutsource human resources, most do face the same challenges of remainingcompliant in an ever-changing human resources landscape: learning the newemployment rules as they relate to Health Care Reform, HR compliance andlegislation, workers’ compensation insurance, and payroll tax reform. Even establishedbusinesses with fully-staffed Human Resources departments my find themselvesconfused or uncertain about certain legislative changes. That is why more and moreemployers are investigating the benefits of human resource outsourcing and how itmay benefit their company.About CPEhrCelebrating its 30th anniversary, CPEhr provides human resources solutions to over75,000 employees through a high-touch service model. Services include employmentcompliance, HR administration, payroll, training, medical benefits and workers’compensation insurance. With corporate headquarters in Los Angeles, CPEhr is one ofthe largest, privately held Human Resources Outsourcing and PEO firms in the state.