Leverage of Large Corporations for Small-Medium Businesses
“Learn to say ‘no’ to the good so you can say ‘yes’ to the best.” – John C. Maxwell
Leverage – Using your tools to their maximum advantage – is a business essential. Quite frankly, large corporations have more people, more financial resources, and more leverage, but small and medium businesses can tap into the same resources. It’s called outsourcing.
A well-thought-out outsourcing plan will benefit your business in multiple, long-term ways.
The cost factor
Depending on the outsourcing solution you choose; it can save you money in multiple ways. For example:
- Gain reduced prices for workers’ compensation and health insurance by being part of a larger pool.
- Pay a flat fee/hour/employee and skip the headache of processing and funding payroll, depositing and filing taxes, and handling various office and administration tasks.
- Reduce labor costs by increasing/decreasing the number of workers in direct connection with your needs.
The efficiency factor
- Dedicating your time to doing what you do well and outsourcing the rest to the experts will get more accomplished in less time.
- Tapping into the “large pool” advantage of outsourcing enables your business to offer your customers/clients access to the same economies of scale, efficiency, and expertise that large companies enjoy.
There are multiple ways to outsource. Bluebox Creative Solutions will help you choose the best option for your business, as well as the best company within that option. Solutions include:
Employer of Record
An EOR is a cost-effective way to outsource payroll and HR functions. The business pays the employer of record a set rate for every hour the employee works, and the employer of record handles employee-related tasks, including:
- Processing and funding payroll
- W-2 forms, contracts, timesheets, taxes
- Managing workers’ compensation
- Employee termination and unemployment
- Employee onboarding (new hire)
- Background checks, drug screening, E-Verify compliance
- Employee compensation, benefits, insurance
Professional Employment Organization
A PEO is a business entity that provides comprehensive HR solutions and outsourcing services to client companies through a co-employment relationship, which allows for improved efficiencies and economies of scale. Some for their services include:
- Tax Administration
- Regulatory compliance assistance
PEOs help businesses improve productivity, increase profitability, and focus on their core mission. It enables their employees to gain access to big-business employee benefits such as 401(k)plans, health, dental, life, and other insurance; dependent care; and other benefits they might not typically receive as employees of a small company.
Studies suggest that businesses who use a PEO grow 7 to 9 percent faster, have 10 to 14 percent lower employee turnover, and are 50 percent less likely to go out of business.
Administrative Service Organization
An administrative services organization (ASO) provides HR administration, payroll support, regulatory compliance, and benefits administration, but does not operate under a co-employment model. Your business remains the employer of record and retains control without having to handle the routine details. Your business is responsible for all the legal obligations that come with it – the ASO takes care of administration. For example, as an employer, you provide insurance benefits but might consider outsourcing the administration of the plan to an ASO. Other types of administration services might include:
- Risk & Compliance Consulting
- State Reporting
- Online Payroll Processing
- Employee Handbooks
- Corporate Training
HR Management Solutions
Outsourcing HR services helps businesses to streamline both time and cost. Choose the specific services that your business needs to will help you contain employment costs, expenses, and optimize efficiencies throughout your company. Partnering with an HR management solutions company is your opportunity for you to outsource the bulk of your responsibilities, including:
- Employment, payroll and payroll tax administration
- Government compliance management
- Employee benefits
- Workers’ compensation
- Recruiting and hiring
- Policies and best practices
- Performance management
- Training and development
Bluebox Creative Solutions has partnerships with Employer of Record, PEO, and HR companies that have solutions to help your company grow and lower your costs. We connect you with integrated, cost-effective business solutions. We strive to exceed your expectations by breaking barriers and changing the game. If you need help with hiring, payroll, compliance, or benefits administration, contact us. We’re available to help you navigate even the most difficult human resources issues.
Our core principles shape our efforts. We are dedicated to our clients, and they benefit from our success. The services we offer are transforming the way small and medium-sized businesses are run, giving them the advantages previously available only to the largest companies. Our concept is simple, we leverage resources and economies of scale (think Costco and Walmart) to save money in the areas of payroll processing, workers’ compensation, employee benefits, payroll funding, and Human Resource services. Find out for yourself. Call us today.