The Morton County Commission chose to outsource its employee services, picking the Billings, Mont.-based Avitus Group to manage human resources, payroll, benefits and risk management for the next year.
The decision to outsource came on a 3-2 vote, despite Commissioner Andy Zachmeier's and city of Bismarck human resource director Chuck Klein's recommendations to keep the work in-house under the auspices of a county-employed human resources director. Commissioners voted 4-1, choosing Avitus over the Minneapolis-based Doherty Employer Services.
Zachmeier attempted to sway commissioners to leave the position in-house with arguments that it was favored by a majority of the county employees along with several influential community figures.
In a polling of department heads, Zachmeier said that seven wanted the services provided in-house, five were for outsourcing and one had no opinion.
Zachmeier also discussed the situation with Cloverdale president T.J. Russell, MVP owner Dave Froehlich, park board president Tracy Porter and four of five Burleigh County commissioners. All were in favor of keeping the employee services in-house, according to Zachmeier.
"We will be sending county tax dollars out of the county, out of the state if we outsource to Avitus or Doherty. We're also cutting a college-educated job," Zachmeier said.
In answer to those concerns, chairman Mark Bitz said that the county would be spending $40,000 less for those services.
"I feel a good paying job is not enough to keep a college-educated person in North Dakota. These people are young and want to see the world. In 10 years they'll want to come back," Bitz said. "Personally, a young college graduate would get chewed up quick by this job."
In his analysis of what the county and its employees need, according to Klein, and from what he'd heard from employees, it was clear that they wanted in-house services. Klein said that Burleigh County just hired a new human resources director for less than $60,000 annually and that neither of the two companies that Morton was considering had any experience with government agencies.
While private agencies and government are similar in many respects, there are some big differences, Klein said.
In the event that the county still decided to outsource, Klein recommended retaining the services of Doherty, feeling they provided a stronger presentation on client services.
Commissioner Dick Tokach said he preferred Avitus because Doherty based a lot of its services on a Web site, while Avitus was looking to hire a human resources person who will be living in the Bismarck-Mandan area, and Avitus also will have a permanent office in the area. Tokach said that of the people he talked to in the county, some were very adamant that the services be outsourced.
Zachmeier offered an alternative, to outsource for only one year and then hire an in-house human resources director. During the course of the year, he said he hoped Morton could work out a cooperative agreement with Mandan for these services.
Tokach said Mandan isn't interested at this time, and should they co-op, there would be nearly 270 employees, more than one human resources professional could handle. Klein said the rule of thumb is one human resources professional for every 100 employees.
Brian Reinbold, representing Avitus, told commissioners Avitus is excited over the prospect of working with Morton County and that the company would be willing to go to work as soon as possible. He said he expects meetings with department heads and individually with all employees would be held within 30 days of approval of a contract.
Roads department director Chuck Morman urged the commission to do something rapidly. He said that there are some serious internal problems that need attention and the process to choose an employee services provider was going on its fourth month.
Commissioners Bitz, Tokach and Jim Boehm approved Boehm's motion to outsource while Matt Erhardt and Zachmeier were in opposition. Tokach's motion to hire Avitus was opposed by only Erhardt.
(Reach reporter Gordon Weixel at 250-8255 or gordon.weixel@;bismarcktribune.com.)
Posted in Local on Tuesday, April 3, 2007 7:00 pm Updated: 3:48 pm.
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