Paychex HR Support, Or Other Options?

BreyerConstruct

Here's the situation:
We're a small, but growing company. While we're still in the "gotta make payroll" stage, we are concerned about improving our professionalism and stability of the company (not just current sales).

Something we've had in the past was a handbook I developed. However, it's been long outdated, and didn't cover everything it needed to. (How to dress, but not hire/fire procedures).

After having to terminate 2 employees last year, we've learned a bit about job descriptions, correctional procedures, and unemployment benefits.

Obviously, with each "lesson" we get better, and move on. However, there's always that nagging fear that we're overlooking something. Now, as we're looking to grow, my concern intensifies, because we'll be looking to hire 1 FT/year-round employee, 1-2 FT/ seasonal, and 1-2 PT employees... and that's a lot of opportunities for error & issues.

So I got an advertisement from my payroll provider, Paychex, offering to work with me to develop a proper employee handbook, and improve & stabilize our HR needs.
We're a small company (07 sales under 500k) with only a few employees. We don't have an HR dept. It's mostly me.

So here's their offer: Paychex can basically "help" me by asking the right questions, getting the info, and putting together a handbook for me. They'll run it by a lawyer, and make sure it includes everything we need.
Cost, $4k.

Or, they'll do the above, but send out a Paychex employee for a few days a month (for the 1st 3 months) to work with us on site to develop the above handbook, get a working safety program in place, train us as needed, and answer any questions that may come up.
Cost, $4.5k, plus can continue with support & 1 day per month on site for $500 per month, with extra $$ for them handling hiring/firing, if interested.

Honestly, before our meeting I had no idea of costs & what's offered.
I kinda like the option of having someone on site working with us to get things right, and the on going support.
However, I have no idea if there is any other/better options out there.

Ok, for anyone still reading this long-winded post, I'd truly appreciate your feedback in evaluation the options from Paychex mentioned above, stories of what you've done in your (or prior) companies, and what other options I should perhaps consider.


I don't really have the $$ in hand for this, but with many overhead expenses, the $$ can be created, if it's important enough (I'm not talking illegally- I'd just pay down a CC less! )

Thanks in advance,
~Matt

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Putty Truck

Nah, not right now. Wise money is paying down all debts and not creating new ones.

There are classes at your local college for you to learn this stuff. You really need to know it, anyway, and book learning is far easier than o.j.t.

There's that employee leasing service, too. If you do a search, there are threads about it.

Double-A

Paychex is going to run this new book by their lawyers? To see if its what you need? Wouldn't it be better to run it by your lawyer?

Also, have you looked into getting some HR help from a SCORE member? Have you checked with your state unemployment office to see what you do need by way of written guidelines for employees?

My concern is this. This company is offering a service that you seem to need. I'm just concerned that there is not enough expertise behind this product to do what you really want it to.

The trouble is, you don't know what you don't know, and when they get done, you only have their word that its what you really need. By checking with others on this, you get a bit more education on the subject, and possibly an alternative route to take.

Four thousand over three months uses about 3% of your average gross sales for that period. (1333/Mo ÷ 41,666.)

I'm just concerned that is going to put quite a dent on the cash flow and the wallet. I'm not afraid to invest or even to make commitments like this, I just like to know I'm getting what I'm paying for.

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BreyerConstruct

Excellent thoughts guy, thanks!

Paychex is the nation's largest payroll service (in business about 30 years), and has been offering HR support for 10-12. I'm pretty comfortable in their abilities, and in their ability to satisfy my need.
However, the price considerations are valid! I'd rather not hinder my CF, it at all possible.

I'm looking to shy away from taking the HR classes myself, and would rather have others do it, so that I can focus on my strengths in the company (selling and marketing). Growth demands that I do less variety of activities, and not more. If I start studying other areas, our sales, and margins, will suffer.

I like the SCORE thought... and another idea from this conversation is perhaps I should ask if they have an extended payment plan... Heck, if it was broken down over 8 months instead of 3, it'd be a lot easier to manage!

Again, thanks for the honest feedback!!
~Matt

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Mike Finley

PM coming your way