Outsourced HR, like TriNet

I think TriNet sucks. Here is why. (Also in part because they market to me constantly and spam the lists I’m on.)

1. They charge something for small companies that is a lot, and per employee for larger companies that is also a lot. Approximately $1,000/month and $150/employee if I recall a recent pitch.

2. Now you have to make that money back somehow right? The main way you do this is: they save you on Health Insurance costs which are insane for small businesses. This is what they are if you buy for a family employee: $1500/month or so; for a single: $600. That’s a lot.

3. But you should minimize this expense in early startup life another way: tell people to take Cobra from their old company. 18 months of big company plan. Also tell them to get their spouses insurance plan for their family. Give them money to do this.

4. So now where are we? You are paying them for Payroll processing. This costs $30/month if you use Intuit’s payroll stuff which is really good and works in all states and does all the taxes and also sells you Workers Comp insurance (important in NYS). Plus it links to your taxes and bank account and financial system (known a QuickbooksOnline, which you should basically use because everyone else does).

5. And oh by the way if you use these clowns and happen to be big enough that you need to do accounting of any kind (e.g., have an accountant) then you are insane to let your lazy controller off the hook of a task so basic as “run payroll” and “get health insurance” –> they are doing vendor payables and closing financials every month anyway.

6. OK so let’s say you are super lazy. Well get a bookkeeper from Teaspiller (now called Intuit something) for $250/month that does all of the above — all of it — in tiny startups. And maybe costs $1,000/month when you are bigger (and does the accounting plus the HR).

End rant.

I realize some people love these operations. I don’t. I prefer to DIY and know how they work. When you do things you learn things.




Congrats on the recent funding.  I did some research on your firm and found your organization reflects my client base.  We have many clients from your industry using TriNet as a trusted partner. I see you are an advisor at multiple TriNet clients.  I would like an opportunity to present the same value we have been able to show the companies that you advise and introduce you to TriNet's "HR in the Cloud" and see if there is a potential for a partnership in the near future. 
Would you be open to a 10 minute phone call next week? 
Shawn Premo