What is the “soft cost” of Human Resources? Can a PEO or HR outsourcing provider quantify?

Payroll is a commodity.

Benefits will cost what they cost.

Risk management, aka, workers compensation insurance will ultimately be based upon your experience.

So, what is the “soft cost” of human resources?  There have been many studies and questionnaires floating around to make a case for HR outsourcing services.  What we see is that most companies do not buy into the concept of “soft costs” until they become “hard costs.”  Meaning, we do not get a business owners attention until after the fact.  And those facts are turnover and non-compliance issues (fines) and workers compensation modifiers that give owners nose bleeds.

Our goal should be to take all aspects of a company’s human resources department into account when proposing a solution.  Line-by-line, department-by-department.