I just completed a conference call with a manufacturing company with more than 400 employees. The savings from the PEO on the workers comp and benefits pay for the hr services…payroll, benefits admin, hr consulting, compliance.
I am amazed sometimes at why more companies, especially those with high mod’s (modifier rating) do not explore this opportunity for their companies.
My calculation, and this is hard dollar savings, is more than $300,000 annually. That is more than $700 per employee per year. Every year. That does not include the savings of having a separate 401k and other benefits.
Who knows the market better than a professional? By working with an HR outsourcing consultant, you get fast-tracked to the front of the line. HR services providers are increasing relying upon outside consultants and sales personnel to assist them in bringing in new business. Because the outside consultant has moved the client from lead to certified prospect, the provider is more willing to price on smaller accounts. In addition, since hr outsourcing consultants are considered big producers by the vendor, their clients are often given preferred pricing.