TriNet's new white paper explains how entrepreneurs of small and mid-sized companies can maximize their human capital without exorbitant overhead

SAN LEANDRO, Calif. (April 30, 2005) The TriNet Group, a nationwide provider of human resources services for small and mid-sized companies, has announced the release of a new white paper, "An Executive's Guide to Cutting HR Costs."

The paper begins with the premise that entrepreneurs, like most people, prefer to do what they're best at, and that means focusing on their core business. Still, the economics of profit and loss demand that entrepreneurs must deal with what many view as a costly distraction—the management of human capital and programs that are crucial to the healthy life of the company.

Two components in particular are vital for keeping HR costs in line:

  1. Increasing productivity
  2. Minimizing human capital expenses

TriNet's twelve-page white paper discusses how entrepreneurs can accomplish both of these goals by focusing on four key areas.

  1. Hiring the right person for the position. Most companies hire on skill and fire on fit, but that's not the optimum strategy for keeping costs in check. To find top talent, it's necessary for companies to define "superior performance." They can then apply that definition to performance-based behavioral interviewing and other strategic recruiting techniques to attract the best candidates.

  2. Improving performance with motivational yet balanced total compensation. A "balanced" total compensation model includes the need to leverage compensation surveys, implement pay-for-performance incentives, offer flexible work schedules, employ non-cash rewards, and motivate employees to find their own ways of cutting costs.

  3. Complying with the law. Compliance boils down to not giving the IRS or any other government agency a reason to become interested in a company's activities. Important bases to cover include distinguishing between exempt and non-exempt employees, understanding the difference between full-time employees and independent contractors, and keeping in step with federal and state regulations that include everything from COBRA to ERISA.

  4. Offer competitive benefits, communicated effectively. The standard list of benefit categories may look the same for small and large employers, but the plans, features, and services offered can be as different as black and white. A typical offering includes insurance coverage for medical, dental, and vision care as well as short- and long-term disability, life, accidental death & dismemberment (AD&D), and long-term care. For small employers, the level of benefits is generally much lower than that provided by large employers, the level of risk to the employer is much higher, and the cost per employee can be higher as well.

While these subject matter areas are not covered exhaustively, the white paper offers helpful resources and guidance in regards to each of them. It reflects the expertise of TriNet's own 17-year history providing comprehensive HR services to companies in the industries of technology, financial services, and professional services.

A free copy of "An Executive's Guide to Cutting HR Costs" can be obtained at http://www.trinet.com/cut_costs

About TriNet Group, Inc.
Founded in 1988, TriNet (www.trinet.com) delivers comprehensive human resource services to small and medium-sized companies. Its offerings include human asset administration, employer risk management, online HR services and support, payroll processing, tax compliance, workers' compensation, group health and welfare products, and strategic human capital consulting services throughout the United States and Canada. More than simply an HR services provider, TriNet contractually assumes certain legal and financial responsibilities regarding employer rights, legal compliance and risk management.