You are the new office manager of an accounting firm. The firm operates in your

Question

You are the new office manager of an accounting firm. The firm operates in your state/ territory. It is owned by 10 partners. They employ 45 accountants. Another 65 employees are employed to undertake administrative tasks.
The accounting firm retains an external provider to provide HR services. The contract is due to expire.
You have been asked to undertake a review of HR services to determine whether it would be appropriate to:
Continue utilising the services of the external provider.
Employ a manager and four people with HR expertise to provide HR services internally.
Retrain six current administrative employees without HR expertise to provide HR services internally under the supervision of a partner of the accounting firm with an interest in HR.
Prepare a detailed checklist of legal requirements that HR providers would need to take into account when providing HR services. The checklist should provide details of the actual obligations and details of specific Commonwealth and state/ territory legislation. There is no need to complete the checklist. (1 page)

Explanation / Answer

The company should continue to utilise the HR services provided by the external provider and should focus on its main and core business as an accounting firm. There are many reasons for the company to outsource its HR function to an external company who has expertise in HR business. It is a time consuming function screeniing resumes looking for employee performance, payrolls and there working hours. Following are the reasons to opt for an external HR company :

CURTAIL DOWN EXPENSES:- The first reason to opt for HR is to curtail down expenses. It is very much expensive to run full HR department alone and there are lot of areas which needs constant care . so the workload will be lessen if there will be a proper team to work upon .This will save a lot of money for the organization.

FOCUS MORE ON THE CORE BUSINESS ACTIVITIES:- A Company hires a staffing agency to look upon the HR functions ;they have more time to focus on their individual core business. The staffing agency provides with all skilled HR professionals who will certainly carry out all sorts of HR functions efficiently and with utmost perfection.

MINIMISING LEGAL COMPLICATIONS:- Every organizations has to follow the laws of the state where they operate. The bigger the firm, the more the legal issues they have to handle. A professional HR person working in a HR company will have all the rules about workplace on their tips. This will definitely help the business to deal with all norms and standards in a better way.

IMPROVE THE OVERALL HIRING PROCESS:- Recruiting people and filling in the vacancy is not at all simple. Finding the right people for the right job is very much a great task in itself. If an organization opt for HR services they will improve upon the hiring process because experienced people will handle this and automatically this will become easier, faster and efficient.

HR companies have to follow many legal compliances which can be a hectic task for the company and if they miss any of them then they have to face various penalties .HR companies are faced very much according to the state and federal laws. Many laws govern all the aspects of the HR companies for recuriting, placement, development and compensation. These laws are as follow:

Davis-Bacon Act of 1931 it states that all nonfederal employees should pay atleast the minimum wages to there employees.

Age Discrimination in Employment Act of 1967 it protects the workers those who are 40 years of age and older from discrimination.

Occupational Safety and Health Act of 1970 this acts force the employer to provide safe working conditions and environment ot employees. the employees should not be forced to work in hazardous conditions.

Family and Medical Leave Act of 1993 it states that who qualify employees 12 work weeks of unpaid have a job protected leave in a 12 month period.

Many more laws have to be followed by these HR companies.

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