Proposal for

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HR Outsourcing

Prepared for:

American Surgisites

Prepared by: Advisor Name Absolute Resource Solutions
227 Route 206 Suite 10 Flanders, NJ 07836 STABLE CREATIVE ACCOUNTABLE

HR OUTSOURCING
If you prefer some professional HR presence on site and you’d like a proactive partner to shape and lead your HR strategy, The HR Outsourcing (HRO) module provides Human Resource support and guidance.

Dedicated HR Representative
While you will still have the HR Helpdesk at your service, the HRO module provides your organization with a dedicated HR professional. By having a dedicated representative, you receive: 1. Strategic HR advice from a person who knows your business, your culture, your vision and your objective. 2. Assistance crafting the policies, procedures and communications needed to make your vision a reality. 3. Implementation support on strategic HR plans, projects and training. 4. Onsite visits with your representative to perform the HR services you determine to be most pressing. To insure our HR representative is available for you in between visits and is not constantly out of the office with other clients, we balance workloads and limit the number of dedicated clients served by any HR representative to not more than 10 at any one time.

Solution Options
Each client is different and only you know what level of support is best for your organization. With the need for flexibility in mind, the HR IN A BOX HRO module comes with 4 options. Under each option, you get the same level of HR partnership and the same level of personalized care. The difference is simply how often we are onsite in your location and thus how quickly we can affect change. Service Levels Basic Standard Premier Elite Onsite Frequency Quarterly Monthly Weekly Weekly Length of Visit Full Day Full Day Half Day Full Day

Most important, you can add the HRO module or switch options at any time. So try out the level of partnership that you think makes the most sense and make adjustments up or down as we learn the optimal balance for you.

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The Unique Needs of American Surgisites
American Surgisites engaged with Automatic Data Processing (ADP) to provide a Workforce Now (WFN) solution to address the needs around the following three areas: 1. Migrating payroll from a PC/Server instance to a web-based Software as a Service (SaaS) model. This was done to allow remote access, more frequent updates and integration with their other back-office administrative tools. 2. Streamline time collection for their remote location which will simplify the payroll processing, provide greater clarity around labor expense and allow for employee self-service. 3. Implementing a HR and Benefits solution that would address the recruiting, HR and Benefit data collection for the organization. This will allow for employee selfservice during open enrollment and at specific life events. It will provide efficiencies around reporting and integrate data flow allowing American Surgisites to eliminate profit leaks. All of this was to be handled by a HR Business Partner who was to lead the implementation, provide assistance for shaping HR strategies and allow the managers and HR contacts to ask their HR related questions. The entire process was to take approximately 12-16 weeks.

The Challenge
As American Surgisites began the implementation, it became clear that ADP provided a very robust solution which required a large amount of data and strategic decisions. Pam has other responsibilities beyond the implementation and wasn’t made aware of the time commitment required to launch the entire solution. After 12 weeks of implementation, there is still a large amount of work that needs to be done in order to launch the solution properly. Additionally the following challenges will not be addressed by ADP: 1. HR and Benefit Compliance updates will not be sent to American Surgisites which could result in the organization being out of compliance. 2. Employees do not have access to an HR contact. In the ADP arrangement, the only contact points with the HR Business Partner are the managers and HR contacts. 3. The launching of the solution and ongoing maintenance is the responsibility of American Surgisites and not the Business Partner.

The Solution
Absolute Resource Solution will provide a trained HR Specialist who will work with ADP to finish the implementation of the WFN solution which will free up Pam’s time and energy. Any and all changes made to the system will be verified with American Surgisites to ensure that it is in line with their mission and values. The HR Specialist will also be available to partner with the ADP Business Partner to work the project plan and handle any other HR related issue the ADP Business Partner can not or is unable to handle.

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The flexibility of the ARS HR Outsourcing Solution provides American Surgisites with the freedom to choose the frequency and expense associated as dictated by the budget and responsibilities.

Financial Proposal & Time Frame
Our recommendation is that American Surgisites utilize the Full Day Weekly on-site for two months with a focus on finishing the implementation of the WFN solution. After the WFN Solution is launched, American Surgisites would have the ability to reduce the onsite time and expense. We recommend that you move to a monthly on-site after the implementation is finished to ensure that any HR related task not being handled by ADP are handled by ARS. If American Surgisites felt that they didn’t need the on-site support for the implementation, it would make more economic sense to select the Standard HRO. Regardless of the selection, the work need to be handled by the American Surgisites would still be completed. The only difference is the services levels is the time on-site at American Surgisites’ location. Product Selected 2 mos Product ELITE HRO STANDARD HRO Onsite Frequency 1 day per week Fee $69.95 per employee per month $29.95 per employee per month Total Expense $ 15,109

Monthly

1 day per month

$ 3243/monthly

As with all ARS work, every aspect of product source and compensation will be fully disclosed so that American Surgisites can effectively evaluate the cost and benefits of any proposal and understand any potential biases or conflict of interest in our recommendations. Authorized by: Accepted by:

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Lisa LaGrasta VP HR & Payroll Services

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