Personnel Management Companies: Some Angles To Your SearchThousands of US companies have opted to partner with companies offering individual and bundled HR services. Let’s look at some of the angles your own organization might want to consider, as you weigh the benefits of working with a personnel management company. Consider your employees’ perspectives. Consider whether the benefits to your organization will truly outweigh the costs. Finally, consider the stability of the companies with which you’re considering a partnership. In a January 2007 Orlando Sentinel column by Harry Wessell, a question was posed by the employee of a company recently forging a new such labor-relations partnership. The employee was concerned that, upon signing the “employee leasing statement” presented to him, his benefits such as tenure, might be detrimentally affected. Upon consulting with a labor-and-employment lawyer, the tentative employee was reassured that the purpose of personnel management companies is actually to strengthen the employee benefits offerings. This question provides an example of the kinds of uneasy feelings your own employees might experience, should your search develop. Keep the lines of communication open, asking for candid feedback and queries. And once you’ve heard from your employees, do them the service they’re looking for – thoroughly research their questions and respond appropriately. In the end, you’ll all be much better served, whether you decide to outsource a portion of your HR operation or not. Researching further, consider the proffered benefits discerningly. Are you seeking assistance because of healthcare costs? Julie Sloane quotes Nancy Anheier, owner of HR Direction, in a March 2007 CNNMoney.com column: "If your employees are primarily young, healthy males, you're probably going to get great rates - maybe lower than what a PEO could offer." You, too, will want to weigh the costs, from all the angles, taking your company’s specific circumstances into consideration. While you’re weighing the myriad of perspectives in your decision of whether or not use a personnel management company, consider, too the stability of the companies you’re reviewing. But consider, too, their recent business decisions. Of Hewitt Associates, Inc, an HR leader whose consulting services build their reputation, Rebecca Knowles wrote, for The Daily Herald, of the company’s 2000 decision to acquire an industry outsourcing company – a decision from which they haven’t recouped yet. Industry analysts sound hopeful when they speak of Hewitt’s potential to regain lost profitability footing. Optimists will want to agree with these analysts. HR professionals, however, looking for the best companies with which to partner, might consider the Hewitt decision as a cautionary tale. Regardless of the paths down which your research take you, it’s wise to consider all angles. Consider the needs of the employees you serve. Look, too, at hidden benefits and liabilities partnership might bring. And finally, as you hone in on the likely partners, look at their histories – carefully. Having considered this range of angles, you’ll be assured of choosing the best possible personnel management company with whom to partner – if such a partnership does turn out to be in your best interest. |