We are obviously in interesting times given the economy and all of the challenges businesses are faced with. A significant amount of problems we see within corporations were actually created 3 to 5 years ago. How is that you ask? After 911 and the market crash, most companies started with their cut backs and the term of the time was “you need to do more with less.”
Layoffs/RIF’s started and companies initiated the “let’s get lean” strategy. The challenge with this strategy is that there were just enough people to do the work at the time and when the cut backs started, the overall amount of work not only actually increased but was now being distributed over a smaller group of employees. At first these employees reacted to the new “get lean strategy” as best they could but things inevitably started to drop through the cracks. Those issues/items that started dropping through the cracks have increased over the last 3 to 5 years and are now causing significant issues. (Increased EEOC claims, law suits, etc.) We are finding companies are having to pay dearly for continuing their mantra of “more with less.” Some of the side effects besides the increased lawsuits (According to Cornell Law School, the average cost of a labor law related suit was $175,000.00 in 2007 and those numbers assume you won the case) are a dramatic decrease in employee morale, hostile work environments being created along with significantly reduced productivity as employees are taking more PTO / Sick time just to take a breather from their over-worked and hectic week.
There are better ways to “do more with less” without sacrificing compliance or other critical areas that are keys to growing your business. Payroll Processing, Benefits Administration and HR Administration are the 3 top areas we see being outsourced with complete success. They are the least strategic and most administratively burdensome/time consuming aspects of most all businesses and are perfect for outsourcing so you truly can “do more with less.”
Norman LeClair / CEO, Corban OneSource
Norman, sorry it has taken me so long to get on this blog as I have seen you quoted in numerous articles that have been published under HR Outsourcing. I have been buried with Open Enrollment and other Org. Changes. I can’t agree with your comments enough when it comes to being given the directive to “do more with less.” Now I know why HR Outsourcing has been exploding over the last 5 years in the mid-sized company area. I fall into that category myself with too much to do and too little time to get it done. I have done my best to communicate to our Executive Committee that our risk exposure is going up due to resources being stretched thin. I think most of my colleagues in SHRM view HR Outsourcing as a threat but I find it to be a welcome addition to my team that can help keep all the balls in the air and catch one if I drop it. Thanks again, Debbie