Just as you have a strategy for controlling supply costs and capital structuring, there is a very real need to implement a “people strategy” — developing, communicating and enforcing the standards and culture you want to instill in your company. This strategy will also help you:
- Provide coaching to your supervisors to keep you and them out of trouble
- Manage employees’ benefits issues and ongoing development and training needs
- Contain long term costs
- Reduce your employer liabilities
- Help you manage your ever changing role as an employer
Whether you decide to utilize internal resources or to outsource, expertise is required when handling this most valuable asset – which is also your greatest potential liability – your employees.
Some of the additional advantages that outsourcing can provide are:
Protect your business and minimize potential liabilities
One of the concerns of any business owner is whether your employment practices make you vulnerable to violations of any of the dozens of employment laws, whether these are state or federal rules and regulations. By engaging an HR outsourcing firm, you will be able to provide your supervisors and managers with team of HR specialists that will provide ongoing coaching for your managers and a proven system of processes that will minimize your employment risks. In fact, a PEO actually takes on the risks and liabilities associated with payroll and benefits aspects of employment, thereby directly reducing your risks.
A Competitive Advantage
The typical employee is attracted to facilities that can offer a complete and competitive benefits package. A Professional Employer Organization (PEO) can supply these types of benefits since they aggregate employees providing you with greater economies and comprehensive benefit packages like those offered by larger medical facilities.
Hiring the Right People
Research reveals that 20 to 50 percent of all hires are unsuccessful. Outsourcing can help you with the hiring process, providing thorough background checks and additional testing that can significantly reduce this risk without the added expense of a recruiting company.
Administrative Efficiencies
Employers spend an average of $120 per document trying to find lost paperwork. Outsourcing can often reduce this exposure and liability through additional technology efficiencies, on line reporting capabilities, issuing electronic pay stubs, and keeping copies of employee files.
Controlling Added Labor Cost
Outsourcing provides people expertise which can often reduce your labor costs by eliminating the need to hire additional administrative personnel internally, such as HR consulting, legal council, and policy development.
As you begin to explore your outsourcing options, you will find that there are different outsourcing services and platforms available to you. Some outsourcing companies are exclusive to serving specific industries; others can tailor services to your individual needs.
The overall goal in outsourcing is to free up your management team to focus on what is most important in your business, namely your patients and the increased efficiency and success of your facility.
Ms. Lacine (rlacine@medhq.net) is director of business development for MedHQ and a veteran in outsource consulting, and Mr. Jacobs (tjacobs@medhq.net) is president of MedHQ. Learn more about MedHQ.
