2. Outsourcing HR Steve Wilner, MBA Over 20 years in the HR outsourcing industry Has helped hundreds of businesses achieve the benefits and ROI of outsourcing HR November 2011 - Property of Your People Professionals, Inc. May not be duplicated or distributed in any form without express written permission. Why so many small and mid-sized businesses are outsourcing HR (not just payroll) and how to make it a success for your company Focus on the Business of Your Business According to research from the U.S. Small Business Administration, the average owner of a small business spends 7-25% of their time handling employee related paperwork

3. Outsourcing HR Why HR is Important Much more than just pushing paper HR is about creating a competitive advantage with your greatest asset - Your People High risk and liability Directly affects your bottom line

4. Outsourcing HR Creating Competitive Advantage

5. Outsourcing HR  High Risk and Liability

6. Outsourcing HR The management team cannot succeed alone Take an honest look and identify areas of need Truly successful businesses have a network of trusted advisors to call on for advice HR has to be on the list of “must have” advisors Network of Trusted Advisors

7. Outsourcing HR DIY (“Do It Yourself”) Partial HR Outsourcing Total HR Outsourcing HR Management Options

8. Outsourcing HR Do your own HR and payroll (with help from the internet) Hire a strong HR (and payroll) person Use outside insurance broker(s), labor attorney, HR consultant, Google, CPA as additional resources Potential short term cost savings Maintain control Resource (time) consuming, maintain risk/liability, error prone Must maintain/upgrade technology Least desirable option - reduces focus, increases risk/liability, higher long term costs, cannot accommodate growth Do It Yourself

9. Outsourcing HR Why HR Outsourcing Small businesses spend up to 80% more per employee than large businesses when complying with federal and state regulations. U.S. Small Business Administration

10. Outsourcing HR Hire a variety of vendors Payroll service, insurance broker(s), HR consultant, labor attorney, internet HR subscription, etc. Leverage vendors’ expertise and resources Potential short term time savings Vendors versus strategic partners Still maintain majority of risk/liability You coordinate vendors and their technologies Better option for large organizations – does not transfer risk/liability, long term costs unknown, less long term time savings Partial HR Outsourcing

11. Outsourcing HR PEO - Professional Employer Organization ASO - Administrative Services Outsourcing Perceived loss of control Loss of current vendor relationships Single strategic partner/trusted advisor versus vendors Benefit from economies of scale (time savings, cost savings, technology, expertise, etc.) Offer big company benefits and infrastructure Long term cost containment and stability Greatly reduced risk/liability (shared employment liability) Excellent fit for small to mid-sized companies Total HR Outsourcing

12. Outsourcing HR Important to choose the right provider – strategic partner not just administrative task processor with extensive technology California is the most complex state for HR Large, national providers Technology heavy, defined range of services, breadth of benefits Call center support, not California experts, many self-insured Smaller, regional providers Flexible, customized partnership supported by technology, flexible range of services, reasonable breadth of benefits Personal support, California (West Coast) experts, access to broader insurance markets Total HR Outsourcing

13. Outsourcing HR Do address HR early and review it often Don’t wing it or, worse, ignore it – high risk/liability area Don’t rely on the internet Do elevate HR to the “C” level Do have an HR strategy Do strongly consider outsourcing it (at least for now) Result: lower risk/liability, increased focus, lower and more predictable long term cost, more motivated employees, lower turnover Positive ROI (return on investment)  HIGHER PROFIT! HR Do’s and Don’ts

14. Outsourcing HR 25 employee law firm: Lowered employee benefits costs by more than $100,000 annually 4 employee new business: HR infrastructure built correctly from the start and able to focus on building the business Family owned business: Impartial HR increased morale and productivity and lowered risk while experienced HR helped strategic planning for a smooth business succession Startup with outside investors and aggressive growth plans: Experienced HR helped strategic planning for HR, benefits, compensation, safety, recruiting, etc. to support growth goals while building HR infrastructure YPP Client Success Stories

15. Outsourcing HR Steve Wilner, MBA Business Development Manager Your People Professionals 415-495-2510 steve@ypp.com www.ypp.com November 2011 - Property of Your People Professionals, Inc. May not be duplicated or distributed in any form without express written permission. Choosing a smaller PEO is a wise choice in that we afford you the high touch service and flexibility that you will not find with the large, national, call center PEO’s. And, as YPP is one of California’s oldest PEO’s (founded in 1984), we also offer the experience and stability of a larger provider that most small PEO’s cannot. YPP is really the best of both worlds. Finally, California HR is all we do; we do it well and we do not try to be experts in every state. Your People Professionals

16. Outsourcing HR Steve Wilner, MBA Business Development Manager Your People Professionals 415-495-2510 steve@ypp.com www.ypp.com November 2011 - Property of Your People Professionals, Inc. May not be duplicated or distributed in any form without express written permission. Your People Professionals (“YPP”) is an HR consulting and outsourcing firm and we help small to mid-sized businesses lower the costs and risks of HR, employee benefits, workers’ comp, and payroll. Over 25 Years of Proven Results and Satisfied Clients California HR is What We Do Proven Systems – On-time, All the Time! Best Practices in Workers’ Compensation, Benefits, Payroll & HR