Human Resources Outsourcing Key Terms

Think out-of-the-box with these human resources outsourcing terms

Business owners today almost unanimously agree that human resources functions have become more sophisticated in the last two decades. And if you're like many CEOs, you probably realize that having those services performed by a human resources outsourcing firm can save you big bucks. Know the key terms related to human resources outsourcing so you can retain a firm that meets your needs and work with them on hiring and managing employees.

 

PEO

PEO stands for professional employer organization. A PEO performs all the functions for your company that a normal HR department would perform. The only difference is that the PEO is a third party charging a fee for these services.
Try: The relationship between a PEO, a company and its employees is depicted by Administaff. Learn more about the specific functions a PEO performs as well the reasons many companies today consider PEOs a more cost-effective solution to their hiring and employee management needs.

Co-Employment relationship

Co-employment relationship refers to the interaction between companies, PEOs, and employees. This relationship is similar to employee leasing.
Try: Pay Care examines the co-employment relationship by explaining the legal rights and responsibilities each party possesses. In particular, you'll find out how PEOs handle their employment liability exposure.

Total Rewards Planning

One of the typical programs that an HR outsourcing firm would design is known as total rewards planning, a comprehensive benefits package to lure and retain top talent.
Try: Go to Human Resource Management Associates to learn more about one of the most popular benefits programs any HR outsourcing firm can create for your company.

HR outsourcing services

Considered as a whole, HR outsourcing services are broken down into categories relating to hiring, benefits, and risk management. You can expect any HR outsourcing firm to provide all of these services.
Try: Read about the solutions that an HR outsourcing firm like Cyber Futuristics offers to its client and how outsourcing services in general have changed over the years.

Employee leasing company

Quite the opposite of a PEO, an employee leasing company strives to find the best deals on health insurance and other employee benefits, usually by purchasing these items in large volume.
Try: ADP breaks down the various services an employee leasing company offers, contrasting them with those offered by a PEO so that the respective benefits of each to your company are apparent.

Life cycle of an employee

If you want to approach HR the way the professionals do, then think about HR tasks as they are needed by workers during the entire life cycle of an employee.
Try: Check Point depicts the life cycle of an employee through an easy to read flow chart, starting with the position opening that led to the employee's hire and ending with the circumstances that separate the employee from the company for good. At each step of the way, the chart identifies a standard function that an HR outsourcing firm would have to complete.

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