>  
 
 

Presented by  

Jack Kelly

General Manager

San Diego & Phoenix 
 

Human Resource Organizations 
Legal Compliance 00Avoiding Lawsuits

 
 

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Defining HRO

HRO Priorities

Employer Responsibilities without HRO

Small Biz Magazine, April 2007

00 HR Mistakes You Can00 Afford to Make00/i>

HRO Benefits

Business impact of a HRO solution 

Agenda

 
 

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Human Resource Organizations (HROs) enable clients to cost-effectively outsource the administrative and compliance portion of  human resources which includes:  employee benefits, payroll, workers' compensation, and legal requirements.  
This allows the business owner to concentrate on strategic human resources issues and the operational and revenue-producing side of its business.   
 

Defining HRO

 
 

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HRO Solution should: Help protect the company Attract and retain employees Provide a repeatable and sustainable HR Function Help business owners sleep well at night.  
HRO Solution should not: Replace legal counsel  
 

HRO Priorities

 
 

Without a HRO 00 You are responsible for: 

Payroll reporting Check printing/payroll processing PTO processing Tax processing and payment W-2 preparation and delivery Annual benefit plan review and renewal Annual benefits open enrollment Benefits administration 00deductions and reconciliation with carriers Benefit plan inquiries Payroll report creation Export of payroll data into Accounting Software Management of EDD paperwork and unemployment claims 401k deductions and reconciliation Supplemental benefits selection, deductions and reconciliation COBRA administration Manager and Employee self- service access to their data Manage multiple vendors  
 
Federal employment law compliance (EEOC, ADA, DOL, FMLA, FLSA, ERISA, COBRA) CA employment law compliance Labor law postings Separation/termination processes and preparation Sexual harassment training program EEOC training program Workers00 compensation insurance coverage selection/renewal Investigation of WC claims Risk assessment of worksite Return to work programs Collect outstanding receivables Manage costs Drive profit growth Strategic HR initiatives Company culture  
 

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Compliant interview questions and         processes Management training Background/drug screening Employee assessment tools Offer letter templates Compensation guidance Compliant new hire forms (W-4, CA Tax forms, application, etc.) Employee handbook Compliant HR forms Compliant Job description templates Performance management templates and procedures Progressive counseling templates and procedures Termination decisions Comprehensive benefits offerings Motivation of  employees Drive revenue growth Interviewing candidates Hiring decisions/offers  
 

Small Biz Magazine 00April, 2007 

Blindsided 00Five HR Mistakes You Can00 Afford to Make  
00o some of us who haven00 made it our profession, 00uman resources00has that ring to it 00the ring of something that can be ignored, handed off to a chief financial officer, or worse, another employee who00 already wearing five different hats.00nbsp; Daniel Blake, Employment Attorney, Bulkley, Richardson & Gelinas, Boston, MA  
 

Small Biz Magazine 00April, 2007 

Median Award in an Employment Case in 2005 $276,711 Up from $150,000 in 1999

Jury Verdict Research, Palm Beach Gardens, FL

Average attorney00 fees $95,000 for suits that settle just before trial $250,000+ for suits that make it to trial Add fines from government agencies

Littler Mendelson, San Francisco

No in house counsel? Owner spends their time on the issue  
 

HR Mistake Examples 

Email UBS Warburg Discrimination case, issue of email preservation Judge told the jury that they could assume missing company emails would have been unfavorable to UBS Award $29 million How HRO helps? Email policy in handbook 00multi-language Harassment training for managers and employees Harassment investigation Knowledge of all 50 states and local jurisdiction labor laws EPLI Coverage  
 

HR Mistake Examples 

Harassment 15 year old at family owned company with 50-60 employees Poster in plain site at worksite re: zero tolerance and reporting process Two days after trial started, settled out of court.  
Federal law 15 ee00 or more it applies Local 00 could be less PA 00 4 ee00 or more 8,650 charges of harassment in 2006 filed with EEOC How HRO helps? Harassment policy in handbook 00multi-language Harassment training for managers and employees Harassment investigation Knowledge of all 50 states and local jurisdiction labor laws EPLI Coverage included in service fees  
 

HR Mistake Examples 

Exempt vs. Non-Exempt 246,00 employees filed for back wages $172 million awarded to employees Labor Department levied $7.9 million in penalties Respond to one complaint but usually ends up encompassing many employees going back up to 3 years. How HRO helps? Job description writing Proper classification of workers Regular review of responsibilities Knowledge of all 50 states and local jurisdiction labor laws Notification of law changes  
 

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For your business, a HRO:

Provides experienced professionals in HR, benefits, payroll and risk management. Assumes certain employment-related liabilities. Delivers professional assistance with compliance (payroll, OSHA, EEOC). Provides secure Internet access to payroll, benefits and personnel data. Provides access to professional HR guidance and materials. Manages claims. Supplies clear, easy-to-read and professionally written employee handbooks, policies, procedures and practices. Improves cost control. Delivers access to better benefits. Reduces turnover. Provides quality benefits and recruiting assistance to attract and retain the best employees.  

Benefits of HROs for employers

 
 

With a HRO 00You are responsible for: 

Managing Your Business Revenue growth Cost Reduction Profit growth Company Culture Workforce makeup Employee motivation Nuts & Bolts Accts. Receivable management Payroll reporting  
 

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Business Impact of an HRO Solution 

Operational Performance  +13% 0024% Customer Satisfaction  +10% - 26% Employee Commitment  +16% - 38% Job Involvement   +10% - 35% Customer Service   + 9% - 25% Helping Behaviors   +14% - 28% Employee Turnover  - 19% 0074% Gevity Institute, 2007  
Average Sales Growth  + 22% Average Profit Growth  + 23% Gevity Institute, 2006  
 

Thank you! 

Jack Kelly

General Manager 

Jerry Kochka

Business Development Manager 

(858) 720-2171

www.gevity.com

 
 
 

漏 2007 Gevity. All rights reserved. GevitySM and gevity.comSM are trademarks of Gevity.

 
 

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