FAQs

The benefits administration process—typically a human resources function—involves creating, designing, updating and managing employee benefits. Specifically, it includes tasks such as enrolling new employees in the benefits program, being a liaison between insurance companies and the organization, managing invoices and more.

Human resources is the function of managing all aspects of personnel within an organization—as well as the recruitment, hiring and onboarding of prospects and new employees. Duties of HR professionals include enhancing employee performance, morale and growth through the administration of Performance Management, professional development and more. From compensation and benefits to training and organizational culture, HR professionals are responsible for a company’s greatest asset—its employees.

The function of HR is to make sure employees are in the right place within an organization and engaged, productive and feel valued. The success of a company relies largely on having the right people in the right roles. In addition to optimizing personnel, HR professionals ensure any legal or ethical issues are satisfied.

Outsourcing HR is working with a third party to help an organization more effectively manage all aspects of its personnel and related costs. Why outsource such an important aspect of a company’s success? Read this article to learn more.

Outsourcing HR typically involves a contractual agreement in which an organization agrees to pay a monthly or annual fee to a third-party consultant to help more effectively manage aspects of its personnel, including, recruitment, onboarding, Performance Management, continuous improvement, employee engagement and more.

Three distinct advantages stand out when functions of HR are outsourced.

• Cost Savings: Many small- or medium-sized businesses are not able to shoulder the expense of a complete HR staff—not to mention the additional building space and resources needed to keep them productive and happy.
• Risk Mitigation: Employment and labor laws are always changing. Outsourcing firms employ HR professionals that stay current on the latest tax and labor employment laws. Expecting one HR professional to single-handedly keep abreast of these constantly changing laws and regulations can be impractical.
• Performance Management: One of the most important tasks for an HR expert is implementing an effective Performance Management solution. This ongoing workplace practice makes sure employee responsibilities are fulfilled, and it can even improve workplace attitude and influence organizational culture. Momentum Employer Group is highly experienced in applying Performance Management systems in organizations both large and small.

Outsourcing HR tasks can save costs, mitigate risk, improve employee performance and ensure the right people are in the right spot within the organization. Working with a qualified third party to help manage personnel and HR processes will help an organization focus more fully on those responsibilities that help grow the business.

The Performance Management process optimizes the fulfillment of employee responsibilities and workplace attitudes. And it effectively measures employee progress (both professional and personal) to ensure development is moving in a strategic direction for the company. It’s not the typical quarterly or yearly performance review. Rather, Performance Management is an ongoing conversational effort between employers and employees.

Rather than a set of predetermined “steps,” Performance Management is composed of four basic guiding elements that help optimize the fulfillment of employee responsibilities and workplace attitudes.

• Goal Setting: Employees should understand the “why” behind each goal, and how its achievement will help support both their own and the organization’s development.
• Communication: In short, the Performance Management process will dissolve without consistent communication between all individuals within the organization, from peers to superiors. Building relationships is critical to the success of this workplace practice.
• Reviews: Performance Management reviews should be casual, face-to-face conversations—not the dreaded yearly or quarterly meetings in the manager’s office. Employees should receive the needed feedback and feel safe to share any setbacks they are experiencing.
• Recognition: Employees want to feel appreciated and valued for the work they perform. Without recognizing individual contribution, managers risk losing employee motivation, buy-in and the open communication so crucial to Performance Management.

Workers’ compensation (“workers’ comp”) is a mandatory insurance in most states. It protects businesses and employees from financial loss when a worker is hurt on the job, or becomes sick from a work-related cause. Workers’ compensation provides lost wages to employees who are unable to work and helps cover medical expenses. It may also compensate family members in the case an employee passes away from a work-related injury or illness—although the exact rules may vary from state to state.

The workers’ comp claims process is complex and varies from state to state. But typically, an employee who becomes injured or sick from a work-related incident must report it to their employer within a certain amount of time. If they wait too long, they may not be eligible to receive compensation. After an employee reports the incident, the employer can file the workers’ compensation claim—at which time the state’s Workers’ Compensation Board will process the claim. The board then directs the insurance company to provide benefits and payments to the employee.

Workers’ compensation provides lost wages and medical expenses. It covers many work-related accidents or illnesses. Although not an exhaustive list, some specific examples include:

• Back injuries
• Injuries resulting from slips and falls
• Injuries sustained from a work-related auto incident
• Carpal tunnel syndrome
• Lung damage or injury from breathing toxic fumes