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.

1. 9000 Sunset Blvd, Suite 900, West Hollywood, CA 90069
www.cpehr.com | info@cpehr.com | 800-850-7133
Human Resources Outsourcing:
A Non-Profit Case Study
25 years ago, a non-profit organization was founded by two ambitious women with
the goal of helping individuals struggling with substance abuse, trauma and domestic
violence. In the beginning, they wore all hats of the organization, from managing the
day-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 centers
across the region.
It was during this significant growth that the founders realized their internal HR
department was not adequately equipped to manage the employment challenges that
larger organizations face. The President and CEO recognized, that even with an HR
director on staff, it was nearly impossible for a single person to stay abreast of the
many industry regulations and changes.
The HR Outsourcing Solution
Over a period of more than a year, the company began researching alternatives to
managing their human resources function. They interviewed three outsourcing
vendors and ultimately selected CPEhr, a professional employer organization (PEO).
After joining CPEhr’s PEO service, they were immediately assigned an HR specialist to
manage and oversee all the employee relations and employment needs. The first
priority was to review the non-profit’s existing Employee Handbook and to update all
its HR forms. Next, the PEO reviewed all the new employment regulations with its
executive team and scheduled training with their managers and supervisors.
Once these priority areas were completed, CPEhr assisted the client in implementing
regular management trainings. The objective was to provide all the non-profit’s
supervisors with the tools and resources they required to manage their roles more
professionally and effectively.

2. 9000 Sunset Blvd, Suite 900, West Hollywood, CA 90069
www.cpehr.com | info@cpehr.com | 800-850-7133
Tangible Results
Within six months of joining the Professional Employer Organization services, the
businesses reported numerous tangible benefits - in addition to the employment
complian ce and human resources expertise they received, they also reported a
tangible reduction in their HR overhead. Based on reduced staff expenses and lower
insurance 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 to
outsource human resources, most do face the same challenges of remaining
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.
About CPEhr
Celebrating its 30th anniversary, CPEhr provides human resources solutions to over
75,000 employees through a high-touch service model. Services include employment
compliance, HR administration, payroll, training, medical benefits and workers’
compensation insurance. With corporate headquarters in Los Angeles, CPEhr is one of
the largest, privately held Human Resources Outsourcing and PEO firms in the state.