HR Outsourcing: A Valuable Management Tool For Nonprofits - Part 2

HR Outsourcing: A Building Block for The Early Years Institute

Since outsourcing its Human Resources (HR) functions to The Alcott Group, a Professional Employer Organization that provides comprehensive HR services, The Early Years Institute (www.earlyyearsinstitute.org, Plainview, NY), a 50l(c)3, has realized many important benefits. The organization has as its mission, "To be a catalyst for new ideas, partnerships and resources that ensure all children have what they need to succeed, and to expand the public will to increase investments in young children." President Dana Friedman, Ed.D recognized that achieving that mission would require her management team's full focus on core operations and development activities. HR outsourcing was viewed as a valuable management tool that would allow them this focus.

"Outsourcing our payroll, tax and benefits administration, along with our regulatory compliance to an organization with experienced HR specialists was the right decision for our organization," said Dr. Friedman. "In the past, I've had individuals handling this area who simply did not have all of the necessary qualifications to manage these complex tasks. Now, we have a complete team of HR professionals who are always there when we need them."

In addition to having direct access to qualified and credentialed HR professionals, The Early Years Institute has gained confidence in knowing that their various HR-related functions are being managed properly.

"Probably one of the greatest benefits gained in a relationship with a qualified and responsive HR partner is confidence," stated Dr. Friedman. "With our payroll, for example, we are assured that it is being handled correctly and with complete accuracy. We receive monthly reports to keep us informed. It's seamless and painless."

Risk management is another area in which HR outsourcing has provided The Early Years Institute with greater peace of mind. "With the guidance of Alcott, we're secure in knowing our Employee Handbook contains the right information – that we are compliant in our workplace processes and employee relations," added Dr. Friedman.

Dr. Friedman cited a recent situation which required the organization to let go one of its employees. "We contacted Alcott to be sure we were following a fair and just process. Everything was properly documented. On the other side, our new hires are met with a very impressive orientation that includes a full explanation of our benefits and information about how to access their plan information online."

Finally, through HR outsourcing, The Early Years Institute has been able to provide its employees with a choice in benefits that enables members to select a plan that best meets their individual needs. Dr. Friedman noted the choice in healthcare plans, for example.

"Alcott offers us four different healthcare plans each of which has appeal to one or more of our staff members who are of different ages and circumstances," said Dr. Friedman. "They also appreciate the additional benefits such as shopping, travel and transportation discounts provided by Alcott. From a management standpoint, we value having access to big company benefits that extend beyond traditional ones to include those that are voluntary as well as many value-added employee perks that demonstrate that we really care about our employees. Through Alcott, we even have an "Employee of the Month" program which has been very well-received."

Dr. Friedman concluded, "The personalized service and accessibility to knowledgeable HR professionals is one of the greatest advantages gained from HR outsourcing."