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HR Partnerships and Outsourcing

Outsourcing Your Human Resource Functions
Article by Robin Lacine, and Tom Jacobs

The question often arises "Am I better off handling my human resource administrative functions internally or should I outsource?". This is essentially the question asked of MedHQ by Thomas Mallon, CEO of Regent Surgical Health. And MedHQ's response? Well, please read further for our answer to this important question.

Human resource management and administration is a wide ranging field. It is so large that it is impossible for a single person to have all the knowledge and skills necessary to meet the day-to-day needs of your organization. Your organization needs a support "team", but your budget can only handle a single person. Outsourcing your HR function is the solution. Outsourcing is often overlooked and yet it has some very distinct advantages that can improve the overall efficiency and profitability of your organization.

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:
1. Provide coaching to your supervisors to keep you and them out of trouble
2. Manage employee benefits and ongoing training needs
3. Contain long-term costs
4. Reduce your employer liabilities
5. Help you manage your organization's evolving role as an employer

Whether you decide to utilize internal resources or to outsource, expertise is required when handling not only your most valuable asset - but also your greatest potential liability - your employees.

Some of the benefits of outsourcing include:

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 outsourcing firm, you will be able to provide your supervisors and managers with a 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 outsourcing firm 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 HR Outsourcing firm can supply these types of benefits since they aggregate employees providing your organization with greater economies of scale and comprehensive benefit packages similar to those offered by larger medical facilities.

Hiring the Right People
Research reveals that 20 to 50 percent of new 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, online reporting capabilities, issuing electronic pay stubs, and keeping copies of employee files.

Controlling Added Labor Cost
Outsourcing provides expertise which can often reduce your organization's labor costs by eliminating the need to hire additional administrative staff such as human resource and legal personnel.

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 exclusively serve specific industries; others can tailor their services to your organization's 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.