Employee Handbooks     Managing Change     Benefits of Outsourcing     Outsourcing Basics   Keep in mind that an HR firm is an extension of your company culture, so try to find one that fits your image. Don't expect a conservative HR firm that works mainly with financial institutions and law firms to be a suitable match for your young, progressive business. It may not attract the right talent pool, and it may not understand your needs well enough to communicate them to prospective candidates. Depending on the types of things you need to outsource, you'll choose a professional employer organization (PEO) or a hybrid outsourcing firm. Professional Employer Organizations If you prefer to focus solely on your core business, or if you have no HR capabilities, then a PEO may be right for you. A PEO recruits, hires and employs on your behalf. It becomes the employer of record for your employees, whom you essentially lease back from the PEO. It also manages all HR functions for these employees, from employee relations and staffing to benefits administration and payroll. Expect to pay between $90 to $150 per employee per month for a comprehensive PEO solution. Hybrid Outsourcing Firms If you're not entirely comfortable handing off all of your HR responsibilities to a PEO, or if you don't need a full suite of services, consider outsourcing a few time-consuming or labor-intensive HR tasks. For example, many companies use recruiters to find suitable candidates, but opt to retain control of staffing activities such as hiring and firing. Recruiters may charge on an hourly or a per-project basis, and generally command $60 to $120 per hour. Executive recruiters contract for approximately 25 to 35 percent of an executive's first-year salary.                                                                                                         Click to next page