Project Three

This is a twenty-employee client who was in the middle of a transition from a Professional Employee Organization (PEO) to a traditional payroll company. The situation was exacerbated by the fact that the Chief Financial Officer, the person responsible for the transition, left the organization. The Human Resource function was part of additional job responsibilities given to the corporate CFO. He did not have the skill or inclination to perform the increasingly demanding HR function of his job.

The leadership of the company also had some concerns that the Human Resource function was inadequate in several aspects.

The client contacted Northeast HR for Hire and asked for assistance in creating short and long-term initiatives for their employees. In the short term, Northeast HR for Hire was asked to assist in the transition from a PEO to a self-administered benefits program in conjunction with an Administrative Services Payroll Processing Organization. In the long term, we were asked to evaluate the strategic areas of the Human Resource function, audit the current Human Resource process and recommend a development action plan for the future.

The client is an organization dedicated to developing and promoting regional efforts to attract high-tech talent and companies while at the same time providing innovative services to assist local businesses.

For the past year, this twenty-employee organization had a co-employer relationship with a local PEO. Management had recently decided to change the method of delivery of payroll and benefits to its employees. The traditional functions of Human Resources were part of the job responsibilities of the CFO and he was driving the transition. The transition from PEO to a payroll service had just begun. The departure of the CFO from the organization left a void that needed to be immediately filled.

The leadership of the organization also had some questions about the effectiveness of the current policies and procedures, the benefits plan design and communication between management and the employees.

The leadership also had concerns about the structure of the Human Resource function and questioned how they could better assist the organization in meeting the needs of the business and developing a strategic plan.

The client and Northeast HR for Hire agreed on the following plan of action:

Short Term Goals:

Initially, Northeast HR for Hire was hired to "shepherd" the transition from the PEO to the payroll company.

First, our consultant made arrangements to insure that the transition maintained benefit continuity, paying particular attention to the medical and dental plans. A solution needed to be found quickly for continuation of dental coverage with a limited participation. The current participation level would not allow the coverage to continue as a stand-alone product.

Second, the client needed assistance in bringing on a new employee while the transition was in progress.

Third, it was necessary, as part of the transition, to change the administration of the client's Section 125 plan and oversee the re-enrollment of its employees.

Finally, management also wanted our consultant to assist in communicating any changes to the employees in order to alleviate any concerns or anxiety among the employees.

Interim Goals:

It was agreed that Northeast HR for Hire would audit the current Human Resource function to determine whether basic services were being maintained in order to meet the needs of the business and the employees.

We also agreed to conduct an informal audit with the employees to determine any issues or circumstances that the leadership and Human Resources needed to address over the longer term.

Long Term Goals:

Northeast HR for Hire was asked to recommend ways to improve the structure and operation of the Human Resource function over the long run. Management also wanted an evaluation of potential staffing needs and an explanation of the relationship between the company and the current and new benefit vendors. In addition, we agreed we would assess the basic HR functions such as Wage and Salary Structure and Administration, Recruitment, Hiring, and Placement, Staff Development and Training, Personnel Practices and Policies, Employee Benefits and Incentive Plans as well as administration of the HR function.

Strategic Planning:

This client decided to retain Northeast HR for Hire as its in-house HR Department on a part-time basis in order to implement its long-term strategy. Our consultant will work in conjunction with the new payroll company to insure smooth payroll processing and administration of all plans and programs. We will also work with the vendors of the 401(k) and Section 125 plans for smooth administration and potential upgrades to the plans.

One of our goals as the company's "in-house HR Department" will be to reshape the Human Resource function within the organization to be more responsive to the employees and management.

Resolution:

By hiring Northeast HR for Hire rather than a full-time Human Resource staff, the company will achieve its goals of improving its HR function, effectively overseeing payroll administration and save the expense and burden of interviewing, hiring, training and paying for a new HR person and/or staff. Northeast HR for Hire has the expertise to walk in the door and immediately provide the necessary HR services as well as assist a company in its long-term HR strategic planning.