A&A Employer Services Announces Launch of New Website; Human Resources Outsourcing Firm Capitalizes on Growth in HR Outsourcing

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A&A Employer Services announces launch of new website and targets growth amid industry growth of outsourced human resource service functions.

The leading reasons behind HR outsourcing include expense reduction, improve compliance with legal requirements and gaining access to vendor talent and expertise.

A&A Employer Services, a human resource outsourcing services firm located in Brea, California has announced the launch of their new website (http://www.aaemployer.com). The company specializes in meeting the needs of small companies in the consumer and professional services categories. Their new website is focused on the needs of small business owners who are seeking expertise and reliability in all areas of human resources. Renewed focus on the outsourcing of human resources is a national trend and an indication that businesses are continuing to seek organizational efficiencies in light of a challenging economy.

Outsourced Human Resources; A Growing Trend

The outsourced human resources industry has grown to over $165 Billion in size from the early 1970's to today with 85% of all firms now outsourcing some aspect of this important functional area. In many companies, the day of the one-stop, internal HR department is a thing of the past. Outsourcing HR firms have engaged high-speed internet technology and our increased familiarity with self-service internet transactions to replace many of the functions that were once served by internal HR departments. However, it is the rare company where the transition to self-serve and web has been 100%. Many companies still retain a skeleton crew of HR professionals.

Human Resources Outsourcing has accelerated over the last ten years and in these lean economic times, it's a trend that is expected to continue. Rather than asking a single provider to meet all HR needs, many companies are hiring out a series of different companies to cover their various HR functions. These tasks can extend from payroll to benefits to recruiting. Beyond payroll, outsourced HR tends to be found among smaller companies - in the 50 to 100 employee range - most frequently.

HR Functions that Are Outsourced and Reasons Behind Outsourcing
Background/ criminal checks, employee assistance/ counseling, and flex spending account administration are among the functions which tend to be completely outsourced most often. Functions which tend to stay within the employing firm include work/ life balance administration, HR information systems management, compensation and incentive plan administration, executive development and coaching and retirement planning.

The leading reasons behind HR outsourcing include expense reduction, improve compliance with legal requirements and gaining access to vendor talent and expertise.
Ways to know whether your company is a good candidate for outsourced human resources:

1.    The company is more concerned with regulations and legal compliance than a high level of personal service.
2.    The company is infrequent turnover.
3.    The company is comfortable with most HR problems being resolved via call-center and e-mail versus internal management.

While the economic benefits of outsourcing are attractive, it's still vitally important to retain a competitive edge when it comes to attracting, training and retaining the best workers. With that in mind, many companies are adopting a hybrid approach as compared with total outsourcing. In some instances, larger companies host the outsourcing company's employees within their own offices. In other instances, some companies transition their former employees to work directly for the outsourcing partner firm and retain existing, case-specific relationships, knowledge and skills.

We interviewed Scott Riley with A&A Employee Services (http://www.aaemployer.com), a Southern California - based outsourced HR firm and asked him about their clients. "Most of our customers tend to be smaller companies in the fifty employee and up range. We work with a lot of auto shops, florists.... those types of businesses. Many of them have worked with us for years. They like us because we're entirely reliable. We offer - literally - round the clock availability and service. I can't tell you the number of times I've worked with clients after hours on sticky issues like terminations or helped clients make important policy changes to gain compliance with some new law or regulation. It's really this very high level of service and the fact that our clients know we've got their back that has enabled us to succeed, even in these really hard economic times."

Factors to Consider When Outsourcing Your HR Functions.

A Society of Human Resources Management report cited these as the top five considerations when outsourcing human resource functions.
1.    Select a partner firm with a proven track record.
2.    Consider the competitiveness of the provider's price quote.
3.    Compare guaranteed service levels with other providers.
4.    Look for flexibility in the contracting - for instance, insist on annual reviews, ensure there are options to modify the contract for performance below pre-set expectations.
5.    Request a list of objective, third-party references and call those references.

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Joe Hines
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